Rent a room scheme may be extended to all landlords.

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landlord

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landlord said:
www.independent.ie

Government will consider including landlords in €14,000 tax-free Rent a Room scheme, Housing Minister says

The Government will consider extending the Rent a Room scheme to landlords, Housing Minister Darragh O’Brien has said.
www.independent.ie www.independent.ie

Am I correct in saying that if this scheme is extended to all landlords that if a landlord receives more than €14,000 in rent he cannot avail of this tax shelter? I.e. most Dublin based landlords.
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Pure speculation and kite flying, heard all this last year and at various points in between and nothing in any way substantive came if it.

If they actually introduced it in its current form can't see it in anyway influencing any landlord except maybe those who last set the rent in 2007.

It would I imagine be a deduction of the first 14 and thereafter taxed at whatever 40% or 52% .
 
It would have to be as @Knuttell above outlined. I would not be sure as to how it would work in principle.

Initially a tax break was being floated where the rent charged was below market rent rent with RPZ caps making it impossible for owner to increase and to increase supply. In practice it may not be so simple to achieve.

Say two identical 2 bedroom rented properties, each owned by different people. One is let to long term tenant at a rent of €1475. The other recently let for first time, with a rent of €2,600.

Former gets a new tax break. Should the latter get an additional tax break, and if so, how does that achieve the goal of reducing rent?
 
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Any landlord would be mad to trust the Govt. Get a tax break reduce rent, remove tax break, rent decreased RPZ stops increase to market rent.
 
I can imagine SF having a field day with this.... Landlords getting 14k tax-free!
 
Guys

Read the thread title before posting.

Posts which are off topic or which contain off topic comments will be deleted.

If you write a long post and then make a short off topic comment, someone else will respond to the off topic bit and the whole thread will go off topic.

Brendan
 
Knuttell said:
Pure speculation and kite flying, heard all this last year and at various points in between and nothing in any way substantive came if it.

If they actually introduced it in its current form can't see it in anyway influencing any landlord except maybe those who last set the rent in 2007.

It would I imagine be a deduction of the first 14 and thereafter taxed at whatever 40% or 52% .
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This may not be speculation as €14,000 is a very specific amount. There is a big problem with affordable accommodation for students, Ukrainian refugees working and living in hotels who cannot afford to leave. Especially in multi generational families. The ARP is a flat €800 for hosts providing accommodation regardless of the amount of people they host. There are people who have been granted asylum who cannot afford to leave Direct Provision. All of these groups of people have to be provided for. Because hotels/holiday villages are being used for accommodation currently it is having a knock on effect on tourism. There is no accommodation for tourists/ seasonal workers. Shops and especially cafes & restaurants are closing. The Government has to look at longer term solutions. This measure I suspect is not just to appease landlords.
 
Leo said:
But it's just that amount as it's the current limit under the rent a room relief.
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Yes that is my point. If they extended it to include stand alone properties the attraction for landlords would be to have the same conditions as the rent a room scheme. Accommodation would then become available for the groups of people I mentioned.
 
landlord said:
www.independent.ie

Government will consider including landlords in €14,000 tax-free Rent a Room scheme, Housing Minister says

The Government will consider extending the Rent a Room scheme to landlords, Housing Minister Darragh O’Brien has said.
www.independent.ie www.independent.ie

Am I correct in saying that if this scheme is extended to all landlords that if a landlord receives more than €14,000 in rent he cannot avail of this tax shelter? I.e. most Dublin based landlords.
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Yes, but if the objective was to reward landlords who kept rents at 1,166.66 per month or less, it could be a good way to keep them going.
If it was to happen it would largely benefit the small cohort of small landlords with pre RPZ tenants paying rents at considerably below current market rates, or landlords in rural areas where rents are much lower anyway.

I can see the point - people (especially landlords) forget that the vast majority of people who rent are people who simply cannot afford to buy a home, so its not likely that they are going to be able to pay a level of rent which exceeds the effective monthly repayment on a €250,000 mortgage over 30 years (which at 3.8% is 1165 euro pcm). So there is a point to incentivising landlords to charge a lower rent.
 
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The government should use tax law to help create housing
In other words help landlords
Far overdue
Insofar limiting to 1100 per month that makes zero sense
It's those landlords in rpz zones who deserve help and they're charging way more than that

It has to be first 14,000 tax free
With no limit

Next question, if a landlord has 20 properties should they get more?
 
If they were to bring this in, what would the impact on the property market be?

I could see it leading to an in increase prices for certain properties at the lower end of the market.
 
Calico said:
If they were to bring this in, what would the impact on the property market be?

I could see it leading to an in increase prices for certain properties at the lower end of the market.
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Meddling with the tax system is order to solve the problems caused by meddling with the rental market.

& €14k tax free will have all sorts of unintended consequences like, as you say, investors buying at the lower end of the market in order to get the tax break when there is already insufficient supply of low priced houses for first time buyers.
 
Calico said:
I could see it leading to an in increase prices for certain properties at the lower end of the market.
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Greenbook said:
& €14k tax free will have all sorts of unintended consequences like, as you say, investors buying at the lower end of the market in order to get the tax break when there is already insufficient supply of low priced houses for first time buyers.
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Probably wishful thinking, but wouldn’t all these unintended consequences be resolved by allowing all landlords to avail of this tax shelter, whether they exceed €14,000 in rental income or not.
 
Silversurfer said:
Yes that is my point.
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I was specifically pointing out that the €14k limit mentioned is not a specific figure being associated with this alone, and as such is not an indicator that the're anything more than kite-flying going on here.
 
Leo said:
But helping landlords doesn't create housing. It may incentivise landlords to invest in the market, but at the expense of those looking to buy.
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According to that argument if all landlords sell up it's a good thing? Creating more supply for owner occupiers?
 
Leo said:
But helping landlords doesn't create housing. It may incentivise landlords to invest in the market, but at the expense of those looking to buy.
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So get rid of landlords and there will be houses for all?
 
Leo said:
But helping landlords doesn't create housing. It may incentivise landlords to invest in the market, but at the expense of those looking to buy.
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Personally speaking, and I know, I am biased being a landlord, but I would have thought over the last 20 odd years that it has generally been first time buyers that have been incentivised to buy at the expense of the landlord, reflecting the massive drop in rental stock.
So a small amount of help to landlords at least would go someway to rebalance this inequality.
 
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