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.