Residential landlords crucified with tax

Increased costs levied by the State is putting the private rental market under pressure and tenants are suffering.

Rents are rising because the cost of providing rental accommodation is rising, Just 30% of landlords own their properties outright. Renters would be shocked to note that approximately 62% of the rent they are paying is going straight back to the Government in the form of income tax, USC, PRSI and local property tax.

Around 15% goes on the normal rental business expenses, with the balance going to the landlord. On a rent of €1,000 per month, the Government takes €620, expenses take €150 and landlords keep €230 net.

71% of landlords have insufficient income from their rental property to cover the mortgage repayment. This is an appalling statistic and unsustainable.

The difficulty is the tax treatment of the sector; it is treated as unearned, costs that are clearly expenses are not allowed as costs.

Commercial Investors are treated more favourably in tax law than residential investors. It appears that homes for people are less important.

A stroke of a pen by the minister can immediately increase the amount of accommodation available.

Stephen Faughnan

Irish Property Owners’ Association

Ashtown Business Centre,

Navan Road,

Dublin 15.