Prior to renting your property you should inform yourself as much as possible to avoid any nasty surprises.
The main things to consider include:
- Know what rent to expect by getting an accurate rental valuation
- Value lower vacancy rates over marginally higher rents, in most cases the income benefit is greater when vacancy rates are minimised
- Expect normal wear and tear and budget for it, continual maintenance should avoid large redecoration costs
- Understand your tax liability, see our Landlord Tax Guide
- Know your legal obligations as a landlord; these will determine how to handle certain issues, see our Legal FAQ’s Guide
- Adopt a pragmatic approach to your property; avoid personalising issues which can cause unnecessary stress and expense
presenting your property
One of the first considerations people have is what to leave, or what to put in. I would say aside from the main furnishings, remove anything that has monetary or sentimental value. Items such as cutlery and crockery are supplied by the tenant. When decorating cost should be a crucial factor, often capital expenditure isn’t reflected in rental income. The main things that should be carried out are a basic paint job and a deep clean. Assess the furniture; old mattresses and couches can be deal breakers.
sourcing a tennant
Deciding on a tenant is the most important consideration when renting property. The right tenant will ensure a continuous income stream and performance of the asset. The wrong tenant can interrupt the income stream and damage the fabric of the dwelling. With over 15 years renting property, we draw on our experience and instinct when recommending a tenant.
Prior to a tenant moving in the following will need to be finalised:
- One month’s rent in advance and one month’s deposit paid upfront
- Signed lease agreements
- Utility bills must be either transferred or cancelled
- An inventory needs to be taken
- A standing order for the rent should be set up
maintenance and management
Ideally there would be no maintenance issues; however the owner needs to prepare themselves for such eventualities. We have experience in dealing with every type of problem and draw on the expertise of our fully certified sub-contractors. Cost is an issue here and we have a bias towards fixing things rather than replacing them. In addition we have a competitive fixed cost structure that we pass onto the client.
In our experience, maintenance problems need to be dealt with quickly. They don’t go away and can manifest with poor tenant relations and/or potential further costs. With this in mind we have favourable credit terms with our sub-contractors allowing us to attend to maintenance issues efficiently. Prior to any maintenance work being carried out, the client is informed, with problems reported, solutions explained and costs agreed.
Not only is good account management essential to measure and monitor your investment, it is required when completing your tax returns. Landlords are sent monthly statements together with original copies of any maintenance invoices to ensure transparency. Annual year end account summaries are available on request, making life easier for you or your accountant when completing your tax returns.
Not only is good account management essential to measure and monitor your investment, it is required when completing your tax returns. Landlords are sent monthly statements together with original copies of any maintenance invoices to ensure transparency. Annual year end account summaries are available on request, making life easier for you or your accountant when completing your tax returns, see our Landlord Tax Guide
It is important landlords are made aware when leases are a month away from expiry. Tenants need to be contacted to discuss their intentions. If they plan to vacate, the property needs to be re-advertised immediately to minimise any potential vacancy. If the tenants agree to remain in the property fixed term contracts can’t always be agreed. Regardless both parties are protected by the original lease and the 2004 Residential Tenancies Act and notice will still be required when the tenant vacates.
From the outsets deposit should be retained separately and not treated as rental income. This will facilitate prompt refund provided the rent has been paid in full and the property has been left in suitable condition save for normal wear and tear. Normal wear and tear is extremely subjective and difficult to assess. In short a landlord can’t expect the property to be in the same condition as it was at the commencement of the tenancy.
For our letting service, we charge 5% of the annual rental income, payable at the commencement of the lease. For our management service, we charge 6% of the monthly rental income, payable on collection. The management service is more comprehensive; incorporating maintenance, rent collection and account management. Any client availing of our management service is exempt from paying the letting fee, this gives the client a more comprehensive service with obvious cash flow benefits. Please note all our fees are subject to VAT @ 23%. For a more comprehensive version of our services, see our Letting and Management Terms and Conditions.
Call us now on +353 (0)1 633 4446 for more information or send us a message.