If you own a property that was vacant before you started renting it out, you may be able to claim tax relief on expenses incurred to prepare it for letting. These "pre-letting expenses" are often overlooked by landlords—yet they can significantly reduce your rental income tax bill.
Our specialists have helped many landlords identify and claim pre-letting expenses they didn't know qualified. Here's everything you need to know about this valuable relief.
📊 Pre-Letting Expenses Key Facts
- What qualifies: Expenses to bring a vacant property to rentable condition
- Maximum claim: €5,000 per property
- Vacancy requirement: Property must have been vacant for 12+ months
- Registration: Must register tenancy with RTB
What Are Pre-Letting Expenses?
Pre-letting expenses are costs you incur to make a previously vacant property suitable for renting. Unlike normal landlord expenses (which are deductible when you have rental income), these are costs incurred before you have a tenant—and they have their own special rules for tax relief.
Qualifying Expenses
To qualify as pre-letting expenses, costs must be:
- Incurred during the 12 months before the property was first let
- The type of expense that would normally be deductible against rental income
- Incurred on a property that was vacant for at least 12 months
Examples of Pre-Letting Expenses
- Repairs: Plumbing, electrical, roof repairs
- Redecoration: Painting, wallpapering
- Cleaning: Professional cleaning services
- Insurance: Landlord insurance during the pre-letting period
- Legal fees: For preparing the lease (short-term)
- Advertising: Costs of finding tenants
The €5,000 Cap
Pre-letting expenses are capped at €5,000 per property. If your qualifying expenses exceed this, you can only claim €5,000. However, once the property is let and generating income, ongoing expenses are deductible without this cap.
Conditions to Claim
To claim pre-letting expenses, you must meet certain conditions:
- The property must have been vacant for at least 12 continuous months
- The tenancy must be registered with the Residential Tenancies Board (RTB)
- The expenses must be incurred within 12 months before first letting
- You must keep receipts and documentation
💡 Real Example
Tom inherited a house that had been vacant for 3 years. Before letting it, he spent €7,500 on repairs, repainting, and new appliances. He was able to claim the maximum €5,000 as pre-letting expenses—reducing his first year's rental tax significantly.
What Doesn't Qualify
Not all expenses qualify as pre-letting expenses:
- Capital improvements: New extensions, structural changes
- Purchase costs: Stamp duty, legal fees for purchase
- Furniture: Unless you're letting furnished (capital expenditure rules apply)
The distinction between repairs (deductible) and improvements (capital) is important. See our guide on common landlord tax mistakes for more details.
PAYE Landlords: Additional Reliefs
If you're also a PAYE employee, don't forget your employment-related tax reliefs:
- Flat rate expenses for your job
- Medical expenses relief
- Rent tax credit (if you rent your own home)
Our specialists review your complete tax situation—both rental and employment—to maximise your refund.
Claim Your Pre-Letting Expenses
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Frequently Asked Questions
What if my property was vacant for less than 12 months?
Unfortunately, the 12-month vacancy requirement is strict. If your property was vacant for less time, these expenses may not qualify as pre-letting expenses—though they may be claimable through other means.
Can I claim if I didn't register with the RTB?
RTB registration is required. If you haven't registered, you should do so—it also affects your ability to claim mortgage interest relief. Our team can advise on your specific situation.
Can I go back and claim for previous years?
You can amend tax returns for up to four years. If you've previously let a property without claiming pre-letting expenses you were entitled to, we may be able to recover them.