Uneasy feeling re renting out house - leave empty??

Discussion in 'Property investment and tenants' rights' started by Maryb50, Feb 15, 2017.

  1. Maryb50

    Maryb50 Registered User

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    Hi! Just need some direction on this. I'm renting out our old family home in Dublin. 3 bed and attic conversion. Good condition - new kitchen, wardrobes and bathroom 18 months ago. Very popular north Dublin area, but first letting agent didn't manage to get tenant in a month. Second letting agent couldn't understand why it was still vacant as a lot of the properties he rented were not in such good condition. Second letting agent reckons I would get 2300 per month for it - first letting agent said 2200 - most of the houses around me are renting for similar money. However, very bad experience with tenants, also supposedly professionals, when we let it via letting and management company 6 years ago. The second letting agent has four different sets of people looking at it tonight, but I feel so uneasy about letting it again, I'd rather leave it idle, especially with all the new rules. Am I mad to consider leaving it idle? The only other option is that a speech therapist wants to rent one of the rooms - is that a better option, though less money?
     
  2. niceoneted

    niceoneted Frequent Poster

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    Would you consider letting to the speech therapist and see will they take on renting the other rooms. let each lodger pay rent directly to you - like they are in a house share. we haven't had the best experience with a letting agent we currently use - so will review at next expiry of lease. We had a better experience renting out individual rooms in the house at one stage.
     
  3. newirishman

    newirishman Frequent Poster

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    If you can't get a tenant then apparently the price is too high. 2300 euro for a 3 bed? Wow.
     
  4. Maryb50

    Maryb50 Registered User

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    Hi! Niconeted, yes I think I will rent the one room to a speech therapist - maybe she will know other therapists who might rent one of the other rooms. I don't think I can go through the stress of tenants again with so little return. I calculated that I would see a max of about e800 euros per month after tax, non-deductible expenses etc. It's just not worth it then to be worrying about tenants that might default on the place, or that may wreck it costing thousands in fixing it up. If even the PRTB was more helpful to Landlords, I might consider letting it out, but it isn't

    Newirishman - e2300 is the going rate for 3 beds in my area. Just two weeks ago, a 3 bed let in the same estate, which was about 200q feet smaller than mine, for e2200 to a family, yet I don't know how many families could sustain this rent. Unfortunately, with the new rules, and Landlords only being able to increase the rent by 4 per cent per year in pressure zones, this has meant that Landlords are seeking the maximum rent. Also, if they are selling on an investment property to an investor, the property that has previously had the highest rent is the one that will get the highest price from an investor, so it is in their interest to maximise the rent. Basically, the new rules have shot themselves in the foot, and will likely cut supply even further, as Landlords who previously rented below market rent to keep nice tenants would not do that anymore, and people like me who feel really uneasy about the lack of rights or recompense for landlords, together with the high tax burden, will just leave their houses empty, though I hear one of the smaller political parties has asked the government to consider compelling people to let empty properties - hopefully that won't come in before my house increases in value by another 80k - by which time it will be what I paid for it, and I will gladly sell it.

    Elaine.
     
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  5. SBarrett

    SBarrett Frequent Poster

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    If you don't live in it and you don't want to rent it, why not sell it? If it's the old family home, you can get a good chunk of the profit on sale tax free.


    Steven
    www.bluewaterfp.ie
     
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  6. Brendan Burgess

    Brendan Burgess Founder

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    This is the type of case where it would normally be sensible to give a discount for a very good tenant. Maybe even someone you know. But you can't do that because of these stupid new rules.

    Agree with Stephen. Selling it seems to be the best option.

    Brendan
     
  7. postman pat

    postman pat Frequent Poster

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    Just to add to this, i"d love to have this dilemma, either way its kind of good,it can be rented for a massive rent,which with the deposit should cover a lot of damage/wear and tear etc if it even occurs and there is the option to sell it again for a massive price.
    I think maybe from your post you really want to sell it but maybe sentiment is holding you back.
    Anyway the best of luck with it.
     
  8. aristotle

    aristotle Frequent Poster

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    Also check your insurance as most will say your house insurance is void if the house is unoccupied for long periods of time.
     
  9. facetious

    facetious Frequent Poster

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    I may be wrong, but you may have to get planning permission for change of use if you rent to someone who will be running a business. Air B&B now require planning permission.
     
  10. cremeegg

    cremeegg Frequent Poster

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    Do they, what makes you think this ?
     
  11. SBarrett

    SBarrett Frequent Poster

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    That it what I thought too and I have come across it many times before. Person has their own home and inherits their old family home. Even though they have no intention of living in it, they are afraid to sell it.

    The person who left it to them wanted to leave them an asset so they can benefit financially upon their death. Unless explicitly stated in the will, that doesn't mean hanging onto the house forever. The deceased would much prefer to see you sell the property and getting good use out of the money rather than fretting on tenants and the management of the property.


    Steven
    wwww.bluewaterfp.ie
     
  12. Monbretia

    Monbretia Frequent Poster

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    I doubt it's sentiment, in post 4 the OP says they want to hold on to the house until it goes up in value by 80k to what they paid for it, so not an inheritance and not too much sentiment either, just a wish to get what they paid for it, whether rightly or wrongly.
     
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