Can we Fix it?… We Can Now
With an atmosphere of financial uncertainty and lingering nervousness still abounding at the moment, it is important to find the positives where they can be found. In our case we often endeavor to inform our clients about available schemes and assistances available to them which may be of assistance.
Today we will be discussing the Repair and Leasing Scheme (RLS), developed under Rebuilding Ireland which offers funds to assist property owners in bringing vacant properties back into use. In the event of properties requiring repairs to bring them up to rental standard, the RLS will pay for the repairs up front in return for the property being utilised as social housing for at least 5 years. The scheme will be available in areas where a social housing need has been identified. The property owner will repay this loan by offsetting the repair cost against the rent owed to the owner over the rental period.
The main points of the scheme are as follows:
- The maximum amount of funding available is €40,000 inclusive of VAT.
- The maximum funding amount will be raised to €50,000 in the event of a property being a former bedsit.
- There will be a minimum social housing lease term of 5 years, and a maximum of 20 years.
- The repairs allowed will in general be smaller works, not requiring any planning permission. The kinds of repairs paid for under the scheme are:
- New flooring, kitchens or furniture.
- Low grade plumbing and heating works.
- Energy efficiency upgrades.
- Window and door replacements.
- Painting and Decorating.
- The requirements to qualify for the scheme are:
- The property must be vacant for 12 months.
- There must be a social housing need in the area.
- The property must undergo assessment to be proven suitable for social housing.
This scheme could be of great benefit to landlords in possession of properties that have been vacant and not generating income as it will offer a guaranteed term of rental income while also upgrading the property to a greater standard.