Q&A: Due to job loss I have to give up my rented apartment and move home. On March 1st, I phoned the landlord, with whom I have always had a good relationship, to tell him that I would not be able to stay the length of my lease and would be leaving at the end of March.
When he finally phoned back he said I would not get my deposit back (€1,100) and he would chase me for the rent for the three months remaining on my lease. I absolutely cannot afford this. What should I do?
AA tenant who wants to terminate their tenancy must give written notice to the landlord – a telephone call will not do. And there are prescribed periods of notice. If you lived in the property for less than 6 months, you must give 28 days notice; more than 6 months but less than a year, the notice is 35 days, and so on. The longer the tenancy, the longer the notice.
You do not say how long you have lived in the apartment but if it is longer than six months, that and the fact that you did not give written notice means you are in a difficult situation regarding the deposit.
Could you get someone to take over the lease? You’ve left yourself very little time to sort out your situation. As you are leaving because you have no money, the landlord, when he gets over his anger, may realise that there is no point chasing you for something you don’t have. Do you have any scope for negotiation? For example, you could pay some rent for the next three months and agree to show the apartment to prospective tenants or repaint it for the landlord in exchange for a rent reduction. If you had a good relationship, you may be able to come to some arrangement. It is not in the landlord’s interest to have a void period. However, it’s worth getting in touch with housing specialists Threshold.ie for advice on your predicament.
Am I liable for CGT?
Q I have rented out a room or sometimes rooms in my house for several years on an informal, adhoc basis, making little money but covering bills, etc, especially during periods when I was off travelling. I am now selling the house but am worried about getting a bill for Capital Gains Tax – which would be significant as the house was bought in 1985 and even in this market has appreciated considerably.
ACapital gains tax does not apply to the sale of a principal private residence. Under the Rent a Room scheme you can rent out rooms in your house – and once the total rent received does not exceed €10,000 in any one year it is exempt from income tax. (Incidentally, it is difficult to see this scheme not being reviewed in coming years). Just be sure that the house was indeed your main residence for all that time and that it was not lived in entirely by tenants. If it was, you could find yourself liable for a capital gains tax bill for the period when the house ceased to be your principal private residence and became a rental – but the bill would be relatively small. Contact your local revenue office for advice.
Your questions
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