The outlook for the letting industry is good. According to 2019 forecasts, there is still a high demand for rental homes in Ireland, particularly in key cities.
“In Dublin alone, apartment living grew by as much as 90% since 2002. Experts believe that the figures are not going down any time soon, especially with the growing popularity of this type of housing.”
Experts also say that it is a good time to put rental properties on the market since competitors are few.
“The country’s rental property supply in November 2018 was just around 3,000. This was a 4.5% decline from the figures posted in November 2017.”
With the high demand and the few supplies, getting a tenant should not be difficult. In fact, if your rental fee is in the lower end, chances are high that you’d generate a lot of inquiries. In 2018, a huge percentage of tenants were looking for affordable apartments but only less than 20% of low-cost rental properties were on the market.
Suffice to say, letting your house can be a profitable endeavour. However, for it to be a good source of passive or extra income, it has to be done the right way. It is therefore imperative that you are well prepared before posting those rental ads.
So, how do you successfully let a house in Ireland? Below are some tips which can help you smoothly navigate this undertaking:
Learn about Rental Laws
It is essential for you to know Irish rental laws to ensure that you do things properly. Failure to abide by the rules can result in hefty fines.
One of the regulations you need to comply with if your property is in a rent-pressure zone (RPZ) is a rental cap. Under this law, landlords can only implement a maximum 4% increase in rental fees annually. Those who breach this legislation are penalised.
It is important to note, however, that there are exemptions to this rule, i.e., houses that just entered the market and those which are newly renovated. To qualify, you’d have to notify the Residential Tenancies Board (RTB). An inspection is going to be conducted to determine if your property satisfies the criteria.
You must also read on the Airbnb regulations as these have an impact on your letting arrangement. To be more specific, these determine whether you let your house on a short-term or long-term basis.
“Under these regulations, those renting out their houses are required to register. Moreover, short-term letting of a property, which isn’t the landlord’s primary residence, via Airbnb and other platforms is no longer going to be allowed without a special planning permission. However, the chance of such arrangement getting approved is low, especially if the property is situated in so-called high demand areas.”
Secure the Necessary Requirements
If your property is still under mortgage, you need to get permission from your lending agency about your plan to let the house.
“Letting your house without their consent may be a breach of the terms and conditions of your mortgage.”
You also have to inform your insurance provider – both building and contents. Since you are renting out your house, the provisions in your policy are going to be amended to meet your current needs.
Another thing you need to do is to get landlord insurance. Not all lenders or mortgage companies require this insurance. However, even if you are not obliged to have it, getting one is still a wise move as it can protect you financially when unforeseen events take place.
The coverage of this type of insurance varies per company. There are those which already include building and contents coverage in this product. Shop around to find one that best suits your needs.
You have to secure a Building Energy Rating (BER) certification, too. This is one of the documents you need to submit when you register your tenancy.
Learning about rental laws and securing essential permissions or documents – these are just some of the important things you need to do before renting out your house. We have more tips for you in the second part of this blog.
Planning to rent out your house in Dublin or other parts of Ireland? We can help find tenants and manage your property. Call us today at 014959020!