New to letting: have a 2nd house which I may let to a family friend on rent allce.

4

4400kevin

Registered User
Messages
19
I work and live in dublin but have a house back home in donegal which I only use every month or so.

I have been approached by a family friend who would like to rent the house she is a lone parent on rent allowance.

I am claiming mortgage relief on this property the repayments are 450 per month 14 years to pay and my other home is 1250 28 years to pay.

Any advice would be greatly appreciated on change in mortgage relief and do I need to register as a landlord etc.

Thanks in advance
Kevin.
 
Re: New to renting

Yes you need to register (in actuality you register the tenancy, not the landlord) with the PRTB.

You also need to deregister for Tax relief at Source on your rental property if you are claiming it (you know you are only entitled to claim TRS on your PPR, ie, one property only?) but you can offset all mortgage interest against rental income for tax purposes so it's no loss really.

The forms for registerering the tenancy and deregistering for TRS are availabe from www.prtb.ie and www.revenue.ie respectively.

You should not forget to inform your insurer of the change of use from (holiday home/PPR) to rental property as most all policies are only for owner occupiers an they could walk away if your property burnt to the ground.

Strictly speaking your bank should probably be informed so they can jack the interest rate up but I'll leave you to decide on that score ;-)
 
Re: New to renting

Thanks for the reply it has been a great help I have downloaded the prtb form and will cancel the tax relief and apply for it on my other home as it will be my main residence thanks again
 
Re: New to letting: have a 2nd house which I may let to a family friend on rent allc

make sure you have a lease and get 1 months rent in advance plus 1 month's rent as deposit. It is much easier for tenant to go into default mode if related as there is always teh heartstrings to be tugged at.

I have been in that position and if had chance again, woudl NOT rent to relation.
 
You must log in or register to reply here.
Back
Top