Rookie landlord - advice please

[ADK]

Hi I have purchased my 2nd house to live in and let the first house.

it is a 3 bed terr in blanch the mortgage is 98k the monthly payment is 540eur and it was valued to let at 1200pm. mgt fee of 650 eur

Ive read the FAQ but cant seem to get my head round it YET !(bit slow)

1)I ve been told that after tax this is a loss maker is that right???

2) I would really like to get good tennants as the neighbours are nice and dont want to piss them off too much how do I go about this.

3)I have to fit the place out -where should 1 look?

Any pointers appreciated

 

[gar123]

Re: Rookie landlord advice please

when i moved intoy my first place 3 years ago i fitted out in power city and bargain town,

3 years on and everything is still in good nick

 

[loriel]

Re: Rookie landlord advice please

Hi.

Go to Argus - they have many starter kits.
Beko appliances are the cheapest - Power City - and they work well.
Bargain Town is ok - especially if you think you will be replacing furniture frequently. However, cheap furniture - cheap tenants.
I was surprised at Atlantic Homecare - got some very good bargains there. Dunnes Stores are pretty good too.

Best of luck with it.

 

[loriel]

Re: Rookie landlord advice please

Hi again.

Forgot to mention getting Tenants. Daft.ie is pretty good. However, as this is your very first letting - i recommend that you engage an agent. They will ensure that you get a contract, references etc. Also - you often get a better quality tenant that way. Yes - you might lose your first months rent on the fee - but you will lose that anyway if you don't get a tenant in the first month.

Also - you need to make up your mind re whether or not you will take rent allowance. If you do - you will have no problem getting tenants.

Regards

 

[ClubMan]

Re: Rookie landlord advice please

1)I ve been told that after tax this is a loss maker is that right???

Are you seriously saying that you haven't even crunched the numbers to assess whether or not the income covers the costs?

 

[Helen]

Re: Rookie landlord advice please

I just fitted a place out and got some great deals from the buy and sell. There are a lot of applicances/furniture being sold that are still in the wrapper.
I also got a table and chairs from ebay.ie for 61.50 EUR!
I decided not to use an agent as I found great tennants using DAFT. They are a foreign family but due to their culture they keep the house immaculate and so far have been extremely polite to deal with and even helped me with some of the DIY when I was fitting it out.
I advertised my house 6 weeks before it would have been ready and had 6 replies within 24 hours. You should try this first, then if you don't like the tennants or don't get replies, you can use an agent.

 

[Protocol]

Re: Rookie landlord advice please

Try to chose tenants who don't drink too much Tennants.

 

[Cat]

Re: Rookie landlord advice please

I went through an agency because I was moving into new place at the time and wanted an agency to do the work for me, searching and vetting the tenants - It was worth it in a way as have good tenants but could have used the money I paid for agency for other things. I didn't go for agency to manage property as you can do that yourself - this would save you the €650. Places like Argos & Bargaintown are very reasonable for furniture fit out but leaving old stuff in rented house might be the answer then you could take your time and save some money for the stuff you really want for your new property. Can't help on the Loss side of things as only new at being landlord myself and have been told that I just fill in a revenue form in October stating details of rental property and what money was spent on improvements for tenants etc.

 

[bacchus]

Hi I have purchased my 2nd house to live in and let the first house.
...I ve been told that after tax this is a loss maker is that right???

Nobody can tell without crushing the numbers....
Can you post details of the calculation that this person did which led to stating it is a loss maker?

Here is a simple example i found doing a quick search on this forum if you want to give it a go yourself... but i am sure you will have gone through that before deciding to let your property


Example Rent account
A residential premises is first let at an annual rent of 10,000. The
Insurance premium on the premises is 600 p.a. and Ground rent of 200
is payable. The landlord is responsible for the payment of electricity and
central heating which cost 800. It was also necessary to carry out repairs
which cost 1,200. The premises is furnished and the value of the fixtures
and fittings is 5,000. Assessable rents are calculated as follows:
Gross rent 10,000
Less:
Insurance 600
Ground rent 200
Electricity/Heating 800
Repairs 1,200
Wear and Tear
5000 x 20% 1,000 3,800
Profit rent 6,200
The taxable rental income is 6,200.

 

[ADK]

Re: Rookie landlord advice please

Are you seriously saying that you haven't even crunched the numbers to assess whether or not the income covers the costs?

its a long story but basically I didnt want to sell my 1st house and I wanted to move to better location.

Thanks for the information about fitting out guys will look up power city and bargaintown and will find a letting agent for the 1st time..
theese are the calcs I was given

Insurance

(Approx)

380​

Bank Fees
(Approx)

18​

Management Company
(Approx)

800​

Maintenance & Repairs
(Approx)

700​

MORTGAGE PAYMENTS
(530*10)

5300​

Total Expenditure



7,198


Income
(1,200 P.M. * 10 months)

12,000​

Less: Expenses






















Expenses

7,198​

Tax 2006&prelim2007

7,146​

Shortfall

-2,344​

bit confusing but to me 2007 should not be included right?? which one of us is a bit thick!?