Renting out my house-tax relief etc

A

andrea79

Registered User
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I might have to rnt out my house as my lodger is leaving and i have the option of moving into accommodation on site at work, for little or nothing.
I have never rented out my house and just wanted to know a few things.

If its rented out as a whole can i still claim mortgage relief or not?

Does an estate agent cost much per month if iwas to go through them to get someone for the house.

Thanks
 
If you no longer live in the house and rent it out:

- you can't claim TRS (mortgage relief)
- you need to register with the PTRB
- you can offset mortgage interest (not principal) against rental income
- you need to declare rental income in your tax return and pay tax at your marginal rate on the rent after deductions
- you can offset expenses related to renting (I believe estate agents' fees are deductible - there's other info on other threads here if you do a search as there are other deductible expenses)

Not sure what an estate agent costs to manage a property but I think it's in the order of 1-month's rent.

Sprite
 
We've rented out our home and its worked out well.
If you are going to be near-by it would be MUCH more cost effective to manage it yourself. Agents charge around 8 % and I have yet to hear a very positive story about them.

I live abroad and paid a neighbour to manage things and its worked out very well.

Our tenants are great.

Its not rocket science...just put an ad on daft.ie
Get a copy of a standard lease to use.
Check references.
Take deposit and boom your a landlord!
 
If you rent a house out at a loss (E.g the interest on the mortgage is greater than the amount of rent you are receiving) giving you a Net loss. can this loss be offset against other income? Or can the loss only be used to offset tax on the tax return for the property?

As an example -

Property rental is a net loss of (10k)
Income from day job is 10k

Could you offset 22% of the 10k loss against the tax paid from your 10k income. Thus leaving you will nil tax to pay at the end of the year?

How does it all work?
 
Sorry, the rental loss can only be used against rental income. You can carry it forward from year to year.
 
Mortgage interest relief on rental properties in now 75%.

I too have never heard a good story about an agent. Do it yourself.
 
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