Our experts answers readers' questions
We want to let our home and rent a house closer to town
Q My husband and I have decided to move closer to Dublin for work reasons and also to a larger property as we have another child on the way. We can’t sell our home because we are in negative equity and are now thinking about renting it out and renting another house ourselves closer to town. I am a bit concerned about this as I have no experience of being a landlord and at the same time I am nervous about becoming a tenant for the first time. Can you please tell me where I should start and what we need to think about before we go ahead and make the move?
A An increasing number of home owners today are reluctantly becoming landlords because they can’t sell their home – for any number of reasons – and need to move. Being in negative equity does not mean you need to be stuck in your current living arrangements, although there are many things to consider to ensure that the process of moving runs according to plan.
Firstly, you need to establish whether it’s possible to rent out your property and the likely rent you may achieve. The rental market is relatively strong at present although it does depend on what type of property you have and its proximity to transport, services, schools etc. However, generally speaking, many agents are reporting a shortage of good quality properties to rent. You can choose to let the property yourself although my recommendation would be to consider a professional letting agent who has experience in your area, particularly as you mention you are going to be a first-time landlord. You can find professional letting agents in your locality on the internet, via the property portals or representative groups for property services.
Most agents will be happy to visit your home for a free consultation, giving you an indication of the rental value of your house, and any items that will require attention prior to letting. He/she will also advise on what should be included and excluded from the letting, and make some suggestions about how to best manage the letting. You will need to consider whether you will require the agent to let the property or to let it and manage it. There are tax relief allowances for letting and management fees but you should speak to an accountant about these.
You will need to obtain a Building Energy Regulation (BER) certificate, which assesses the energy efficiency of your house, inform your insurance company that the property will no longer be owner-occupied but rented and advise your mortgage lender also. You will also need taxation advice on changes to tax relief on your mortgage and any rental income will be treated as income and will be brought into your tax liabilities. You will also need to register the tenancy with the Private Residential Tenancies Board (PRTB) for which there is a registration charge.
You will be liable for the Non Principal Private Residence (NPPR) charge as well as the household charge. As things stand, you will not have to pay these charges on the house you move to.
In terms of the house you want to move to, contact the agents in the area you’re considering and make some appointments to view properties. The property websites are an obvious port of call. It is a good idea to explain your circumstances to the agent who is letting the property – different tenants have different requirements and from my own point of view, the more information the tenant gives me, the better I can match them to their preferred type of accommodation. Once again, scarcity is becoming an issue, so you should probably start looking now to ensure a smooth transition from one home to the next.
Ed Carey is chair of the residential property professional group of the Society of Chartered Surveyors Ireland
Hedging around our neighbours
Q There is a low hedge between our neighbours’ front garden and ours. We would like it higher, but they like to keep it low – and do. The roots are (mostly) on their side. My solution: cut back most of the growth on our side, and erect a fence between the two gardens. How high can we go? If we have to sink posts into the ground, how close to the boundary can they be? And, finally, if the fence-builder were to leave a gap at the bottom, and nature caused the hedge to regrow on our side of the fence – eventually, perhaps, even higher than the fence itself – would our low-hedge-loving neighbours then be within their rights to come into our garden and cut it back? Or would we then have a high hedge that they couldn’t interfere with?
A Given that the roots of the hedge are mainly on your neighbours’ side it seems the hedge is on their property. Consequently, your neighbours’ may keep the hedge at whatever height they wish. The first thing you should do is discuss with your neighbours your preference for a higher hedge. If they are not in agreement with this then you should outline clearly what you are planning to do. Bear in mind that erecting a fence and leaving a gap for the hedge to grow up on your side may be seen by your neighbours as an aggressive move and could lead to unnecessary conflict in the future where the only solution is through litigation.
If you do decide to erect a new fence then the posts must be inside your boundary. Remember that if your neighbours remove the hedge in the future they could gain an extra strip of land in their garden. Where a hedge extends over a boundary then you can trim it back to the boundary line, but must return all trimmings to your neighbour as these belong to them.
An alternative solution could be to grow your own hedge inside your property, which you can then keep at a higher height. Do remember to check if there are any conditions relating to hedge heights imposed on your property. This can be the case where an estate is managed by a property management company or where the developer continues to hold the freehold of the land and title has been passed on to individual property owners by way of a long lease.
Finally, your neighbour must ask permission to enter your property in order to maintain their hedge; otherwise it would be trespassing.
Niamh O’Reilly is a member of the geomatics professional group of the Society of Chartered Surveyors Ireland
How do I attract a good tenant?
Q I recently became a landlord for the first time after inheriting an apartment in Co Kildare and would be grateful for your advice on renting my property out.
I advertised it to let in the paper and on the internet but have been disappointed by the lack of interest in the property – particularly as, having read some recent reports, I was under the impression that the rental market was strong.
One person who did come to view the property said that they had just moved to the country and didn’t have references and I am a little concerned about this.
Is there anything else I can request from them for peace of mind and what else can I do to rent the property out faster?
A There is a strong demand for property to rent at present but tenants also have a greater choice of higher quality properties and are more discerning when it comes to choosing one.
The key to securing a qualified tenant is to present your property well and ensure it is in good condition. You should also ensure that it is priced well in terms of the rent and be thorough in your screening process with prospective tenants.
It would be worth asking the prospective tenant whether they can get references from previous employers and landlords from the country they lived in before. If so, you could then follow up on the references to ensure peace of mind. It would also be worth finding out if the prospective tenant is starting employment or study in Ireland in the near future. If so, perhaps their future employer or academic institution could provide you with a reference or confirmation of their new employment or study status.
In terms of what you can do to rent the property out, we would suggest that you take the following steps:
1) Make sure you include photos of the property if advertising online. The web is likely to be the first introduction to your property for prospective tenants and it is important that there are several good quality photos for them to look at.
2) Taking a little time to ensure that the property is well presented can make all the difference when you are trying to secure a new tenant. Dress the beds, add small and inexpensive touches to improve how the property looks, ensure that the appliances are all in good working order and that the property is thoroughly cleaned. It is often best to offer the option of furnished or unfurnished.
3) Price your property in line with comparable apartments in the area. If the response is not forthcoming, it would suggest that the price is too high or that the property is not well presented compared to other available properties.
All potential tenants should be in a position to provide, and grant you permission to follow up on, references from their previous landlord and employer and confirmation of a bank account – even those who may have moved from overseas.
A prospective tenant must also provide you with their contact details and PPS number for you to have the lease drawn up and to register the tenancy with the PRTB (the Private Residential Tenancy Board).
They must also be in a position to provide you with a security deposit and first month’s rent, which you must receipt, and it is also advisable that you draw up a schedule for inspection of the property at pre-agreed times. Prior to your tenant moving into the property we would recommend walking through the property with them to sign off on the inventory and to note any defects, and of course to transfer the utilities into their name.
Rowena Quinn is a member of the residential property professional group of the Society of Chartered Surveyors Ireland scsi.ie
