New “Service Charge”

The majority of households will have to pay a new combined water and property charge of approximately €100, though the exact details are yet to be announced. As reported in the Irish Independent, the charge could range from €100 to €200 but the more likely outcome is closer to €100 with a few exemptions. For those in the rental sector, it will be landlords who foot the bill as the charge applies to property owners. However it is expected that they will pass on the charge to tenants through increasing the rent. Whether or not this is a good idea is up for debate as it may mean that those on lower incomes or social welfare will not be able to afford housing. Anyone who doesn’t pay will be penalised. People may be wondering why they have to pay another tax, especially after the renegotiation of the EU-IMF bailout deal. Transport minister Leo Varadkar has said that regardless of any crisis, our budget deficit still has to be reduced. Grants to local authorities and councils to provide services such as sewerage and road maintenance will be cut with the new tax filling the resulting gap. This is a precursor to a full property tax and water charges. It will take years to roll out, but water meters will have to be installed in every house. There will be a basic amount free but if you go over that you will have to pay a charge. As for the property tax, it will be based upon the house value or its size. The opposition are expected to challenge these measures.

Mould Growth

While generally an all year round problem, mould growth can become more of a problem towards the autumn and winter months so now is the best time to start prevention measures. Before we get into those, it’s important to know the science bit about how it grows and what exactly mould is. Mould is a type of fungi that occurs completely naturally in nature and its main function is to help with the decomposition of organic matter such as leaves. Going by that definition, it obviously has no use indoors. They reproduce through spores that float around in the air and only grow into visible colonies when they spend enough time on a suitable surface containing moisture and nutrients.

Materials that are used in the building of most homes like plywood and carpets are fantastic for mould to take hold of so the key to prevention is moisture. Excess moisture appears after flooding, plumbing leaks, buildings that are too airtight so moisture can’t escape, not enough ventilation near ovens and showers resulting in condensation and general high humidity levels. Condensation also occurs when air gets colder and it loses its ability to retain moisture.

The most common one out of those for Irish homes is probably condensation. It’s an internal problem arising from moisture that can’t escape. To prevent condensation and in turn contribute largely to the prevention of mould you should:

• Have a good ventilation system in place – extractor fans in bathrooms, exhaust fans in cooking and laundering areas and open windows 
• Dry windows and windowsills when you notice condensation forming 
• Insulate cold surfaces well in order to keep central heating low to stop build up on windows, walls and floors 
• Try to keep carpets and rugs away from water sources like sinks and showers 
• Dry washed clothes outside as much as possible 
• Air cupboards and wardrobes frequently 

If mould is already a problem in the home, the best thing to do is get rid of what’s already there and then take preventative measures. Mould killing sprays can be bought in most local supermarkets and these are effective in removing small growths, although a mixture of water and bleach can also help. If on walls or skirting boards, fungicidal paint can be used after the clean up to prevent a recurrence of the problem. For larger growths it is recommended to call a professional mould remover. Certain materials like insulation and carpets can’t just be treated, they need to be removed and replaced.

If you spot the beginnings of mould growth (black pinpricks) take action immediately. While not generally toxic, mould can be an irritant and can contribute to respiratory problems.

*Information sourced from the CDC, the Canadian Centre for Occupational Health & Safety, A Guide to Dealing with Mould and Condensation produced by Stockport Homes (it has some interesting illustrations showing how much excess moisture can be produced by ordinary activities), Dover District Council and general knowledge remembered from years of studying home economics and biology!

 

NPPR and PRTB News

Figures released over the weekend by the Department of the Environment show that NPPR payments have amounted to over €180m since its introduction in 2009. This is vastly greater than the €100m previously expected. Owners of approximately 320,000 second properties have paid up and will no doubt help local authorities to fund the various services they provide. They also have power to chase up payments by checking bills, and the voter and land registers. For those who like a bit of detail, the Irish Independent provides a breakdown of the figures.

• 2009 - 323,365 properties brought in €68.7m in tax 
• 2010 - €66.9m was paid on 320,766 properties 
• 2011- So far, €47.7m was acquired from 238,720 properties 
• All of that totals €183.5 million 

Not surprisingly, most of the second homes are in Dublin with the lowest amount in Monaghan

As expected, the crackdown on PRTB avoiders has begun. According to the Irish Times, the PRTB has written to 1400 landlords warning them that they will be prosecuted for not registering. Inspections of private rented accommodation will be able to be conducted thanks to the €4 million given to local authorities today. These inspections will cover areas such as sound structure, appropriate ventilation and heating etc. Signing onto the register will make inspections and regulation easier. So far, the PRTB has issued eight court summonses for later this month and have secured seven criminal convictions against landlords in the past six months so they are very definitely serious about it! 

Info sourced from the Irish Independent and the Irish Times. Articles can be found here and here respectively

Timely Reminders

End Date for NPPR Payments

As mentioned in a previous blog post, a tax of €200 needs to be paid on properties that are not a person’s main place of residence. This tax was due by the 31st of March but there is a 3 month grace period. That period ends today, June 30th. A €20 per month penalty will apply for all late payments so if you haven’t paid as yet you better do it quick!
There are exemptions from the tax, such as certain social housing and heritage buildings. The payment can be made online at www.nppr.ie

PRTB

Another quick reminder, this time about the PRTB. All residential properties must be registered with the Private Residential Tenancies Board, as must all changes in tenancies and tenants who have been renting for over 4 years must be re-registered. Registration is done through an application form (found online at prtb.ie or through your letting agency) and a fee of €90 has to be paid. If you’re not sure whether or not a property is registered, you can check on the PRTB website. It is of the utmost importance that you register as there is a major crackdown ahead. As reported in the Irish Independent, the State had paid more than €250m last year to unregistered landlords and it appears that this has helped to spurn on the action. Failure to register may bring about a fine of up to €3000, daily fines of €250 and/or 6 months imprisonment. The Revenue Commissioners are looking for landlords to confirm that they’re registered before they allow a bank interest deduction on the particular property so registering really is the best thing you can do.

Rent management of your property through Dublin Letting & Property Management

Brief Guide to the Rental Accommodation Scheme

The Rental Accommodation Scheme (RAS) helps those who have been receiving rental supplement for more than 18 months to find suitable housing. These people are assessed as having a long term housing need. The operation of the scheme is thanks to the collaborative effort of government departments, the HSE and local authorities. The local authority is responsible for sourcing property and paying the full rent to whoever provides the accommodation on behalf of the tenant for up to four years.

It is optional for landlords to enter into, but to be a part of the scheme:

- The landlord must be tax compliant and have proof of such by a Tax Clearance certificate

- The property must meet the minimum standards

- As with other tenancies, it must be registered with the PRTB

A person having a home is undoubtedly a good thing, and providing good quality rental accommodation will benefit society as a whole. Having secure accommodation makes it easier to access employment and education opportunities which in theory may lead to the ability to access a broader range of accommodation. It also takes the strain off the Supplementary Welfare Allowance and pushes up standards in the private rented sector.
 

For landlords, the advantages include guaranteed rent for four years minimum, no vacancies for your properties, no advertising costs, no hassle collecting rent or falling into rent arrears and tenants are screened beforehand. As with ordinary rental agreements, the value of the rent is determined by the local market and negotiation. It must be noted that the RAS is not a property manager. The landlord still has responsibility for maintenance and repair, tenant issues and insurance.

*Info sourced from the Department of the Environment, Community and Local Government, Dublin City Council. Contact your local authority to find out how you can become a part of the scheme. 

Choosing the Right Agency

Property management can be a very stressful and time consuming job, especially for a first time landlord. Demanding tenants, problems with rent collection etc. all contribute to a worrisome task. This is where the beauty of a letting and property management agency shines through. They become the first point of contact for any queries and all you, the landlord have to do is watch the rent go into your account each month. Choosing the right agency that will do what you need for a decent price can be tricky, but a bit of shopping around and keeping the following points in mind will help you find the most suitable agency.

Are they registered with National Property Regulatory Services Authority?
Do they manage other properties similar to yours?
How many properties do they already have on their books?
Which agent will be dealing with your property?
How do they vet potential tenants?
How much is the fee and exactly what does it include? (let only, let and manage, rent collection)
How is the fee collected and how long will it take to reach your account?
If they manage the property, who do they use for maintenance and repairs?
How often will they inspect the property?

 

At Dublin Letting and our sister company Meath Letting we have a dedicated number of agents who have many years of experience in the letting and management area. Our agents are our biggest asset. I am not an agent myself, so this is not a case of an agent blowing his or her horn so to speak but I can clearly see the professionalism and diligence these agents bring to their job, along with a valuable personal touch.  No matter which agent your property is assigned to, you will receive a high quality service. Before this blog becomes a sales pitch, I shall just direct you towards the Services Page on our website and you can see for yourself the answers to the above questions and if the answer is not there, our contact details also on the website.

 

I must turn to an interesting feature which distinguishes us from other agencies. Two of our property managers have developed some software that removes the headaches that can surround managing rents. The software, Rentview , has been tested for the past year and has been proven to reduce defaulting payments, make it easier for both landlords and tenants to monitor and check payments with online access to schedules, receipts etc., identify late payments, automatically send rent reminders, and generate rent arrears notices and much more.

 

One final note: before you start looking for an agency make sure you’re clear on exactly what you want. There is no point in comparing agencies when you don’t know what you should be looking out for. If you are unclear, talk to others who have experience with letting and property management agencies or go online and check out a few forums. Both are very handy for finding out the general opinion on matters and answers to specific questions. Good luck and I hope to see you in our office soon! 

Emigrating Landlords

The unfortunate continuing trend of emigration from our shores is not only limited to jobseekers and young graduates but extends to many other groups, including landlords. Not everyone can be as inventive as Féilim Mac an Iomaire, and so we’ve noticed more properties being added to our books thanks to these emigrating landlords. Obviously enough, it’s difficult to manage a property when you’re not in the same country as it, so the logical move is to find a high quality property management company to take care of any issues. Below is some useful information that any and every emigrating landlord needs to know.

PRTB Registration

Most landlords will already be familiar with the Private Residential Tenancy Board, but for any first time landlords here’s a quick summary. The PRTB is an organisation who provides primarily a dispute resolution service but also as the name suggests, provides a tenant registering service. It is required by law (under the Residential Tenancies Act 2004), to register all tenancies and it is only after registration that you can access the dispute resolution service. The PRTB also carries out research which is then used to give policy recommendations and information to the government on the private rented sector. To register, you must complete an application for a pay a fee of €90 per tenancy or a late fee of €180. The FAQ page on the PRTB website provides excellent and very detailed information on the process, found here . A non resident landlord is obliged to register tenancies.

Tax

When rent is directly paid from a tenant to a non resident landlord, the tenant must withhold an amount equivalent to the standard rate of tax from the gross rent and submit it to the Revenue Commissioners. At the end of the year a tenant must fill out the Form R185 and send it to the landlord as proof that the tax has been paid. The landlord can then claim this as credit.

If the letting of the property has been done through an agent, the rent is paid to the agent in full. (S)he must submit an annual tax return  and account for the tax under the Self Assessment process. We recommend visiting www.revenue.ie for further information.

Second Property Tax

The second property tax relates to non principal private residencies, i.e. if you live in Dublin but own a property in Cork then you must pay tax on the Cork property but not the Dublin home. The tax amounts to €200, which must be paid within two months of March 31st (liability date), although there is a months grace period. After that a late fee of €20 per month is charged. Like the PRTB, applications and payments can be done online.