Property Clinic

EXPERTS EXPLAIN: Ask our experts for advice on your property problems

How much can I expect to pay for house renovations?

Q I viewed a house “requiring work” and, while it could be a fine family home, it needed a lot of work. For a top-to-bottom revamp of a typical 1950s structurally-sound semi-d, what sort of rebuilding costs per sq m/sq ft should I budget for? Is there a website where I can check this?

A There is significant value in the market at present with construction and renovation costs at levels not seen since the late 1990s. Refurbishment of family homes is becoming an increasingly popular option. It gives owners the opportunity to customise a property to their individual tastes and also greatly improves energy efficiency and comfort levels to modern-day standards.

For an average-sized family home, full refurbishment costs would be in the region of €1,200 per sq m or €110 per sq ft. This would allow for a full stripping-out of the house and new roof finish and rainwater goods, new windows and external doors, new internal wall, floor and ceiling finishes, insulating external walls and roof space, replacement of heating/plumbing and electrics, replacing internal joinery, new kitchen/utility and bathroom and redecoration throughout.

These costs are a broad indicator only and will vary depending on location, level of specification and finishes, and the condition of the house.

I would advise anyone undertaking such works to contact a local chartered quantity surveyor who will provide a detailed budget estimate to give an accurate indication of likely costs involved.

Early cost planning always pays dividends later in the project.

The Society of Chartered Surveyors Ireland has a rebuild guide on its website, which may be useful for broad comparison purposes, but the main focus of the guide is insurance reinstatement valuation.

* Andrew Nugent is a chartered surveyor and chair of the Quantity Surveying Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie

Can my landlord increase the rent?

Q I have been renting an apartment for two years in Dublin and have been an excellent tenant and always paid the rent on time. The lease is due for renewal next month and I have been informed that the landlord wants to put the rent up by €100. Is he entitled to do that?

A Yes, the landlord is entitled to review the rent once annually at the expiry of the lease. However, the rent charged must reflect the market price at the time. If you believe that the rent he/she is proposing is higher than the market rent you could refer the matter to the Private Residential Tenancies Board (PRTB), see prtb.ie.

There are a number of reports in the market that outline average rental rates around the country and you could check them to verify the average market rent in your area. Obviously, you can also decide that you do not want to pay the increase and seek alternative accommodation. Rents have increased slightly in the market in recent months, albeit marginally. There appears to be good supply, but not as much as 18 months ago, putting slight pressure on the availability of qood quality property to rent which is driving up market rents.

A good tenant is valuable to a landlord and many landlords will acknowledge this by keeping the rent at the same level. However, it is also true to say that landlords are being faced with extra charges and taxes (annual property tax/household charge, NPPR charges etc) so it is possible that the landlord may seek to increase rents to mitigate the extra outgoings. My advice would be to have a frank discussion with your landlord/agent and outline your concerns. It may be possible to reach a compromise that suits both parties.

* Fergal Hopkins is an associate member of the Society of Chartered Surveyors Ireland and RICS. See scsi.ie

Is charge tax deductible?

Q Is the new household charge deductible against tax on rented properties, given that the landlord has to pay it? And do we also have to pay the Non-Principal Private Residence (NPPR) charge, and if yes, is that deductible against rental income as well? And can householders faced with the cost of replacing/upgrading sewerage systems offset it against their taxes?

A There are two parts to this question. Unfortunately neither the household charge nor the Non-Principal Private Residence (NPPR) charge are tax detectable expenses, even though the property owner and not the occupier is responsible for payment of both.

Regarding the second part of the question, the issue here is whether or not the property requiring the upgrade is an investment property or not. If the property is the principal private residence, then the replacement/upgrading of the sewerage systems are not tax deductable expenses. Unfortunately, the expense incurred will be no different to any form of improvement works you might carry out to your house in the normal course of events.

If, on the other hand, the property is an investment property, then, like any business, certain expenses incurred in relation to that business are deductable against your income from that business (rental income), or against the sale proceeds when the property is sold. Great care is needed as to whether the upgrade of the septic tank is a capital expenditure, or a repair. Any repairs are tax deductable and certain capital expenditures are allowable when the asset is sold.

It is questionable as to whether the works would enhance the value of the asset (and therefore almost certainly be a capital expense), or are merely repairs required to maintain the asset (and then a repair), and I would suggest the classification would hinge on the amount of expenditure and nature of the works. Unfortunately The question cannot be fully considered until after the legislation is enacted and any necessary works carried out. This should not be taken as tax advice, and full details should be presented to your tax advisoer before any final returns are made to the Revenue.

* Ed Carey is a chartered surveyor and chair of the Residential Property Professional Group of the Society of Chartered Surveyors Ireland, scsi.ie

Got a query?

Send your queries to propertyquestions @irishtimes.com or to Property Questions, The Irish Times, 24-28 Tara Street, Dublin 2. This column is a readers’ service. Advice given is general and individual advice should always be sought