ozindublin Posted July 28, 2012 Share Posted July 28, 2012 Hi guys, I'm onto the next step towards heading home to Perth, which is sorting our Dublin home out! I'm interested in knowing what you all did with your homes if you didn't sell them. Did you go through real estate agents? did you find your own tenants, then hand it over to a management team? are you managing it yourselves from abroad? I'm surprised again how differently they all charge. I'm swaying towards finding myself the tenants, which saves me paying them a letting fee, then handing it over to a chosen management agent for a 5% fee. Better than 10% and 17%... I'm finding this quite stressful, as this part of the plan has to work out well. We have an appointment with an accountant on Monday to get some more information, as everything I have read would indicate that getting a professional to help with the tax, as we will be abroad, is the best option. Any comments welcome! Link to comment Share on other sites More sharing options...
Guest JonnyNI Posted July 28, 2012 Share Posted July 28, 2012 Hi There, We have had my OH's house rented out in Omagh for 3 years now. What we do is get it advertised, viewings done etc. by an agent. Once we have tenants in we look after the management of the property ourselves. To be honest there is very little to it, the only time you have something to do is if there is a problem or if the rent is late. When we go to Oz it is our plan to have a friend/family member look after the property. We will of course pay them a fee for doing so. We will have tradesmen lined up to sort out any problems that may arise. An electrician, painter, handyman and plumber. If there is something goes wrong and you get an agent to bring any of these people in it will cost you an arm and a leg!!! Hope this helps, Jonny Link to comment Share on other sites More sharing options...
ozindublin Posted July 28, 2012 Author Share Posted July 28, 2012 Thanks Jonny, I don't know if its the same, but down here we get charged 20% for being a foreign landlord, and its upto the tenants to pay, unless its going through an agent. The tenants are supposed to deduct the tax, pay the remainder to the landlord, then send the 20% to the tax department. I've been reading alot of tenants would avoid having an landlord who resides oversea's because of the tax payments. Which I completely understand. Link to comment Share on other sites More sharing options...
Rupert Posted July 28, 2012 Share Posted July 28, 2012 Rent it out with a management agent. They look after everything for me and I think it is money well spent, I don't need to worry about anything, I have got enough to do. Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted July 28, 2012 Share Posted July 28, 2012 Don't fancy anyone living in our house renting, but ..... we might have to, it will be a last resort though, we can"t sell at about £40k loss and then lose massively again on the crappy exchange rate, so long term rent until the housing market improves in the UK and the exchange rate goes back up to at least 2 to 1 which might take a few years, but it might save us betwen $100 and $150 thousand dollars, so it might be worthwhile. Link to comment Share on other sites More sharing options...
ozindublin Posted July 28, 2012 Author Share Posted July 28, 2012 Rent it out with a management agent. They look after everything for me and I think it is money well spent, I don't need to worry about anything, I have got enough to do. Good experience then, no problem with tenants? Link to comment Share on other sites More sharing options...
cki2011 Posted July 28, 2012 Share Posted July 28, 2012 Don't fancy anyone living in our house renting, but ..... we might have to, it will be a last resort though, we can"t sell at about £40k loss and then lose massively again on the crappy exchange rate, so long term rent until the housing market improves in the UK and the exchange rate goes back up to at least 2 to 1 which might take a few years, but it might save us betwen $100 and $150 thousand dollars, so it might be worthwhile. Hello We already rent our other house out on the same estate that we live in and it was to our sons football coach so we seen them twice a week at least and knew them well.... a month ago we gave them notice to leave as they had been treating it bad and upsetting the neighbours and when we got the keys back they had trashed it and it will cost around £4,000 to fix it up and that is with me doing all the labour so it is a risky business and you cant trust anyone, we kept the £650 bond but they are going bankrupt so we cant even sue them.... Gutted Link to comment Share on other sites More sharing options...
Rupert Posted July 29, 2012 Share Posted July 29, 2012 Good experience then, no problem with tenants? Not so far ... touch wood. Link to comment Share on other sites More sharing options...
Guest Shell15 Posted July 29, 2012 Share Posted July 29, 2012 We contacted a childrens home which we know has a very good reputation in our area for support care in the community, they have come and had a look and will be taking it on as a rental in september (which is perfect for us) the monthly rent we have agreed on is just above market value. It is a 12 month rolling contract, but they keep rentals for 5 years plus. They maintain and manage the property themselves and keep them in tip top condition, as they are monitored themselves, so have to. They have up to 5 staff on rolling rotas. We wont have to pay the extortionate monthly rates estate agents charge either.. Not everyones cup ot tea but it ticks all the boxes for us. Good luck.. Link to comment Share on other sites More sharing options...
gypsy10 Posted July 29, 2012 Share Posted July 29, 2012 Great thread ozindublin. We have no idea when we're moving out but hopefully this time next year. We want to rent our house it too just in case things do not go as planned out there. Question, do you have to have a buy-to-let mortgage to rent out or can it be a normal one? Our current product ends next March so we need to decide what product we need to secure, with renting it out in mind. Also did you guys leave it furnished or unfurnished?? As you can see I am clueless and have no idea where to begin so any comments will be welcome. Thank Link to comment Share on other sites More sharing options...
ozindublin Posted July 29, 2012 Author Share Posted July 29, 2012 Thanks for the replies! We contacted our bank a few months ago via e-mail, and they wrote back saying as it is the only home we own (family home), we can keep on our tracker mortgage, we were delighted. Its the tax that has me worried, but all will become clearer after our appointment with the accountant tomorrow. Gypsy10, you'll have to find out how they do things in your area, here in Dublin most houses are rented out furnished. Which suits me just fine, less shipping for us! and I get to refurnish my Perth home Ive had two Real Esate guys out, and I'm dreading have any more through. i got an e-mail back from one yesterday saying he was only available to come around midweek after 9pm... anytime after 8pm is MY time, not a bloody real estate fella's, the kids will be in bed asleep, what the feck is the point in coming around after 9pm. So thats turned me off him. I'm so easily put off them :biglaugh:. (especially considering I was a property Manager in oz for 6 years... 20 years ago... eeekkk!) I'll post back after tomorrow's news... Link to comment Share on other sites More sharing options...
Guest usmakpr Posted July 30, 2012 Share Posted July 30, 2012 How much we more earn through this business? Because this business has become global businss. Link to comment Share on other sites More sharing options...
gypsy10 Posted July 30, 2012 Share Posted July 30, 2012 Look forward to hearing how it goes. When are you planning on going out there? If you don't mind me asking what location will you be starting off in? All the best Thanks for the replies! We contacted our bank a few months ago via e-mail, and they wrote back saying as it is the only home we own (family home), we can keep on our tracker mortgage, we were delighted. Its the tax that has me worried, but all will become clearer after our appointment with the accountant tomorrow. Gypsy10, you'll have to find out how they do things in your area, here in Dublin most houses are rented out furnished. Which suits me just fine, less shipping for us! and I get to refurnish my Perth home Ive had two Real Esate guys out, and I'm dreading have any more through. i got an e-mail back from one yesterday saying he was only available to come around midweek after 9pm... anytime after 8pm is MY time, not a bloody real estate fella's, the kids will be in bed asleep, what the feck is the point in coming around after 9pm. So thats turned me off him. I'm so easily put off them :biglaugh:. (especially considering I was a property Manager in oz for 6 years... 20 years ago... eeekkk!) I'll post back after tomorrow's news... Link to comment Share on other sites More sharing options...
ozindublin Posted July 31, 2012 Author Share Posted July 31, 2012 Ok, we got some very intersting information yesterday from the accountant. Please bare in mind we are based in Rep. Ireland, but it might get you thinking. In Ireland even when you leave you should be submitting tax returns for three years. After three years you don't have to. If you ever return then the tax office has every right to tax you for income earnt in these years. So we thought we were in deep... sh... waters for a while. It looked like our returns had to include any income earnt in Australia PLUS income from the rent here in Ireland. This ended up looking like we'd have to pay about 53% of the rental income. You also have to submt tax returns in Australia, they have a tax agreement with Ireland. Then came the all important question... do I work?... no, so we're going to submit our tax returns seperately, and the rental income will be my only income. So only 20% tax.. phew... from this 20% we can deduct all real estate fee's & costs incurred for the rental property. So we can afford our mortgage repayments & tax & landlord fees... just, but we might get some money back each year. Thank god! Breath.. Link to comment Share on other sites More sharing options...
gypsy10 Posted July 31, 2012 Share Posted July 31, 2012 Oh my goodness that sounds so scarey! I think we need to get some professional advice too. We left Dublin in 2001 (hubby is Irish) and settled in the UK so just the one house here. Fingers crossed we don't have to do tax returns and all that palava based in the UK. Thanks for the info. Ok, we got some very intersting information yesterday from the accountant. Please bare in mind we are based in Rep. Ireland, but it might get you thinking. In Ireland even when you leave you should be submitting tax returns for three years. After three years you don't have to. If you ever return then the tax office has every right to tax you for income earnt in these years. So we thought we were in deep... sh... waters for a while. It looked like our returns had to include any income earnt in Australia PLUS income from the rent here in Ireland. This ended up looking like we'd have to pay about 53% of the rental income. You also have to submt tax returns in Australia, they have a tax agreement with Ireland. Then came the all important question... do I work?... no, so we're going to submit our tax returns seperately, and the rental income will be my only income. So only 20% tax.. phew... from this 20% we can deduct all real estate fee's & costs incurred for the rental property. So we can afford our mortgage repayments & tax & landlord fees... just, but we might get some money back each year. Thank god! Breath.. Link to comment Share on other sites More sharing options...
Guest Shell15 Posted August 1, 2012 Share Posted August 1, 2012 In case anyone is interested, we have just signed up the following for £27 per month..includes all labour and materials. Bit of a safety net for us while renting our property out and being abroad.. http://www.home-maintenance.info/maintenance-plans/'>http://www.home-maintenance.info/maintenance-plans/ or http://www.home-maintenance.info/ Link to comment Share on other sites More sharing options...
Guest PBrady Posted August 1, 2012 Share Posted August 1, 2012 Ok, we got some very intersting information yesterday from the accountant. Please bare in mind we are based in Rep. Ireland, but it might get you thinking. In Ireland even when you leave you should be submitting tax returns for three years. After three years you don't have to. If you ever return then the tax office has every right to tax you for income earnt in these years. So we thought we were in deep... sh... waters for a while. It looked like our returns had to include any income earnt in Australia PLUS income from the rent here in Ireland. This ended up looking like we'd have to pay about 53% of the rental income. You also have to submt tax returns in Australia, they have a tax agreement with Ireland. Then came the all important question... do I work?... no, so we're going to submit our tax returns seperately, and the rental income will be my only income. So only 20% tax.. phew... from this 20% we can deduct all real estate fee's & costs incurred for the rental property. So we can afford our mortgage repayments & tax & landlord fees... just, but we might get some money back each year. Thank god! Breath.. Hiya, We are in the same situation, just got our visas, shipping company coming next week and have people viewing the house to rent this weekend. Our rent will just about cover the mortgage so we will not make a profit on renting out the family home, will we also have to do a return for the rental income? When you say you need to do tax returns for 3 years are you talking about doing a return on the rental income only or are you including salaries earned in Australia as well. Also, we are getting the tenants ourselves and a family member is going to look after the maintenance, rental market is very good at the moment so thats good news. So much to do and so little time!! Link to comment Share on other sites More sharing options...
ozindublin Posted August 1, 2012 Author Share Posted August 1, 2012 Hiya,We are in the same situation, just got our visas, shipping company coming next week and have people viewing the house to rent this weekend. Our rent will just about cover the mortgage so we will not make a profit on renting out the family home, will we also have to do a return for the rental income? When you say you need to do tax returns for 3 years are you talking about doing a return on the rental income only or are you including salaries earned in Australia as well. Also, we are getting the tenants ourselves and a family member is going to look after the maintenance, rental market is very good at the moment so thats good news. So much to do and so little time!! Hi PBrady, We have found out through some forums, that being a Foriegn Landlord is not as easy as a local one. I guess it depends on how you do your rental, are you registering with the PRTB? if so then you'll need to pay 20% on the total rent received, and to make it more difficult it is to be paid by the tenant, so they deduct the 20% and pay you the remainder. If they do not pay this, then it is still your responsibility. So the only way to get around this, is to go through a estate agent, who will charge you, and also deduct the tax instead of the tenant. All the real estate fees can be deducted from the 20%. We paid €50 for a discussion with a local accountant. He says income returns should be submitted for ALL income including that made whilst in Australia. Over three years the tax reduces, and after three years you dont have to do a return at all. Its the same in Australia, when you do a tax return over there you have to declare your rental income in Ireland too. We've decided to pay someone to do all the work for us. We do plan on returning one day, and we could be hit hard! and after the first year we can deduct he's fees aswell! If you register with PRTB then you can claim back 75% of your mortgage interest too, you cant if you don't register. Loads to think about heh? Link to comment Share on other sites More sharing options...
julesharp Posted August 1, 2012 Share Posted August 1, 2012 hello jonny we are from omagh as well and hopefully headed to melbourne! Did you get a tennacy agreement from solicitor before renting out?:biggrin: Link to comment Share on other sites More sharing options...
Guest PBrady Posted August 2, 2012 Share Posted August 2, 2012 Hi PBrady, We have found out through some forums, that being a Foriegn Landlord is not as easy as a local one. I guess it depends on how you do your rental, are you registering with the PRTB? if so then you'll need to pay 20% on the total rent received, and to make it more difficult it is to be paid by the tenant, so they deduct the 20% and pay you the remainder. If they do not pay this, then it is still your responsibility. So the only way to get around this, is to go through a estate agent, who will charge you, and also deduct the tax instead of the tenant. All the real estate fees can be deducted from the 20%. We paid €50 for a discussion with a local accountant. He says income returns should be submitted for ALL income including that made whilst in Australia. Over three years the tax reduces, and after three years you dont have to do a return at all. Its the same in Australia, when you do a tax return over there you have to declare your rental income in Ireland too. We've decided to pay someone to do all the work for us. We do plan on returning one day, and we could be hit hard! and after the first year we can deduct he's fees aswell! If you register with PRTB then you can claim back 75% of your mortgage interest too, you cant if you don't register. Loads to think about heh? Hi, Yes definitely loads to think about, I thought that if you let through an agent then they could not withhold tax. Its a crazy system to put the onus on the tenant to pay the 20% over to Revenue, its a bit too risky, what if they say they will pay it and don't, the liabililty still rests with the landlord. I think I will make the return myself each year, I don't plan on asking the tenant to withhold the tax, at the end of the day Revenue will still get the monies due to them albeit at bit later than if the tenant was making the payment to them on a monthly basis, at the end of the day as far as I know the liability is not due until the Oct following the full tax year. I will be registering with the PRTB, I will also register with ROS so that I have things set up to make the rental return. We don't plan on coming back to Ireland, fingers crossed everything will work out :wink: Link to comment Share on other sites More sharing options...
ozindublin Posted August 2, 2012 Author Share Posted August 2, 2012 Hi PBrady, When are you heading over, and when did you begin to look for a tenant? I'm not sure how to time it. I have plenty of time as we're not leaving until the 8th October, but it could be pointless starting too early? I'm really not sure. I'll have to scrub the house top to bottom before any photos are taken anyhow! I'm nervous renting our house out, I hope it all works out, and we get the perfect tenants. I'm hoping to get a few applications to choose from. I wonder if it will work out like that? Did get more than one intersted tenant? Stacy. Link to comment Share on other sites More sharing options...
Fisher1 Posted August 2, 2012 Share Posted August 2, 2012 I have had a buy to let flat (bought to let out) for five years. The management co takes one months rent a year even when the tenant is staying, just for renewing the lease, also 5% on top of that. Any repairs are organised through them and are always on the high side for cost. Having said that, it means that we don't have to do anything ourselves. During our one void we chose to paint and decorate ourselves to keep costs down, but otherwise it is all organised by the management co. I think it has been worth the high fee (dont forget it's tax deductable) for the peace of mind and lack of hassle as we don't live nearby. We have let furnished because it is a flat likely to appeal to young single people who are starting out and we felt it would be more attractive if people didnt immediately have to start shopping for furniture. However, there is no financial benefit as rental income is about the same in most places furnished or not. Also if electrical goods are supplied you are supposed to have them serviced between lets - which is a pain. Then there is the cost of replacements. We have had landlords insurance from the beginning - it has cost about £100 a year and covers malicious damage, non-payment of rent etc. good luck! Link to comment Share on other sites More sharing options...
Fisher1 Posted August 2, 2012 Share Posted August 2, 2012 PS CLEANING!!!! It really isnt worth 'scrubbing the house from top to bottom' before you let. A good normal clean is enough - because the tenants may well ask for a professional clean before they move in, particularly if it has been empty for a few weeks. I scrubbed our flat to the bone before I handed the keys to the management co and then had to cough up £100 three weeks later for a 'professional' clean. Grrrr. Link to comment Share on other sites More sharing options...
Guest PBrady Posted August 2, 2012 Share Posted August 2, 2012 Hi PBrady, When are you heading over, and when did you begin to look for a tenant? I'm not sure how to time it. I have plenty of time as we're not leaving until the 8th October, but it could be pointless starting too early? I'm really not sure. I'll have to scrub the house top to bottom before any photos are taken anyhow! I'm nervous renting our house out, I hope it all works out, and we get the perfect tenants. I'm hoping to get a few applications to choose from. I wonder if it will work out like that? Did get more than one intersted tenant? Stacy. Hiya, My husband is heading over with 2 of our children on 20th Aug and I'm following with 2 younger ones on 18th Sept. ATM the house is like a bomb, we have the packers coming in next Wednesday. I put the house up on daft on Tuesday with just one photo of the outside and description and I have 3 people coming to view it on Sat, I was originally going to ask them to wait until the house is cleared out but then thought better of it and said they could all come at the same time Sat, they know that the house is a bit chaotic but are still happy to see it. I suppose I am really cutting it fine, hopefully we will get a tenant interested on Saturday, if not I will put more pictures up to try and entice more people to view it. I suppose depending on where you are living will determine the demand. We are in Meath, Dunboyne so it is near enough the city centre. Link to comment Share on other sites More sharing options...
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