As a private landlord you are able to claim back expenses for your property like maintenance and upkeep etc and while many choose to avail of the services of a property management company who can look after all of those issues for you, many choose to go it alone. So what are the details around claiming expenses against your property rental in Ireland?
Can I claim after the tenants have moved out?
So in essence, yes you can, but only if the property will be rented again. There is no point for the government to subsidise refurbishments on a property that will only benefit the owner. If you intend on having tenants in as soon as possible then claiming your maintenance or repair expenses will be no problem. Revenue’s Guide to Rental Income states: “Expenses incurred in the period between lettings are deductible provided the landlord was not in occupation of the premises during the period and a new lease is granted.”
Another thing to keep in mind, is that despite your own ability – perhaps you are a tradesman and perfectly capable of carrying out maintenance works on your property yourself – you will not be able to claim for time and labour carried out by yourself.
Before your first let
You cannot claim expenses for the period of time in which you bought the property and first leased it out. You can claim while it is being rented, but not for the period before this. Although some of these expenses may be allowable against capital gains when you sell the property. You will not be able to claim any mortgage interest either until the first letting. You can however claim for any advertising or estate agent fees relating to the properties first rental.
There is an exception however, that allows landlords to claim up to €5,000 in expenses on upgrading a property that has lain empty for at least a year before the first rental – as long as it is rented before the end of this year.
So what is allowed?
Most landlords will be in a position where their property is currently being rented out, so what expenses can they claim in this case? Well there are a few, so make sure not to overlook anything. You can claim for many things such as advertising and estate agent fees, repairs & maintenance, registration and insurance costs against the property and of course, mortgage interest against the property while it is being leased. Be sure to keep all paperwork and receipts as advice from Revenue states that these should be kept on hand for at least 6 years after the relevant date. Revenue will not accept estimates, so make sure to keep your receipts.
Property Management Companies
While this all can seem a little daunting at first, many seasoned landlords and investors take these things in their stride now. But there is always an alternative. A solid and experienced property management company can do all this work for you, saving you time and money! At KPM Group we have over 25 years experience in property management in Ireland. We can help you with any expenses by providing a one stop shop for all your property needs. We can advertise, find tenants, collect rent, carry out maintenance and much more. Give us a call today and see how KPM Group can help you on your Landlord journey.