If you’re a landlord in Ireland, there are a number of expenses you can claim when you file your return.
While the revenue doesn't generally issue rebates for expenses incurred before a property is rented to tenants, advertising is one of the few pre-letting expenses that's accepted (along with auctioneer and legal fees). Therefore, you are entitled to take a deduction for any expenses undertaken in advertising your property – provided it's within reason!
Here's a list of different advertising mediums you could be using to get your property out there, and whether you're entitled to claim back money on them.
There are a number of websites dedicated to renting and selling property. If you're a tenant looking to rent in Ireland, the chances are that the internet is going to be your first port of call, so as a landlord it's worth getting your property online. Placing a standard ad with a service like Daft is typically around €35 per property for 90 days, with premium and featured ads going at anything between €75 and €200 per property. You can still claim expenses even if you use the more expensive advertising outlay. You are also entitled to a deduction for each basic advertising expense you incur, so bear this in mind if you've posted more than one ad for different properties.
The classifieds may seem like an outdated way to advertise property, but tenants will still turn to their local paper as a way of finding the best housing deals in their area. There's no set price for print property listings as they vary from paper to paper, and it can be reasonably expensive as you are often charged by the size of the ad and what days it's due to run. Still, as long as you aren't paying for lavish, full-page colour ads, you should be able to claim it back.
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If you decide to use an agent to rent or advertise your property, a deduction can be claimed for this as well. The typical fee for a letting agent is around 10% of each months rent, or the equivalent of 1 - 2 months rent per year. As long as you keep your receipts in order, you should be eligible to claim this back, so it's worth considering if you're new to the rental game.
Small Ads/Shop Windows
Another form of advertising which seems outdated in the wake of the digital age, but still remains pervasive in terms of renting within small communities. If you have a room or a house to rent, putting a few lines in your local shop windows might be an effective way to advertise to people in your neighbourhood looking to move. While unusual and a little informal, this is still something you are able to claim back on as advertising expenses (although it's rarely expensive in the first place). Again, this is a fairly informal way of advertising, so get a receipt if you're looking to claim it back.
We have a tax return service for Landlords
Something you might want to bear in mind is that if you're renting a room in your own house and your net income from that rental in 2022 is under €14,000, you may qualify for Rent Relief. This means that you aren't covered by landlord/tenant legislation, and don't have to pay income tax on any rental income you earn. The bad news is that you can't claim any refunds, so when you advertise your room you do it off your own back!
In a nutshell, there's no real limit or strict guidelines to what you can claim back for advertising expenses, as long as it's within reason – the Revenue is unlikely to allow a deduction for a billboard, for example, so keep it sensible. As with all landlord expenses, it's absolutely vital that you keep track of any receipts and paperwork relating to your advertising costs in order to make the process of filing your return as successful and streamlined as possible. Remember – if you're struggling with your return, our team of Tax Experts are always available to help.