Renting a Room in your Home – Tax Free, no red tape and a growing demand – a good deal all round!

Many homeowners thinking about renting out a room may be put off because they assume there are a lot of legal obligations, red tape and tax implications. If you are a landlord and leasing out a property that is indeed the case as there is a lot of necessary legislation and obligations involved. However if you live in the house and rent out a room then the situation gets much simpler.

Firstly you are not subject to landlord/tenant legislation, you do not have to register with the Private Residential Tenancies Board (PRTB) and you do not have to provide a rental book. Given that it is your own house we can assume it is being well maintained but, again, you are not legally obliged to meet the minimum physical standards laid out in Housing (Amendment) Regulations 2009. In the event that you wish to end the rental you just need to give reasonable notice rather than a fixed period as laid out in tenancy legislation.

So now we know that we know the legal side of renting a room is straightforward what are the benefits? Obviously the primary reason for renting a room is to get extra income. In spite of all the recent cutbacks the Government continue to leavr the Rent-a-room scheme untouched so a homeowner can earn up to €14,000 gross income from renting a room and not have to pay any income tax, USC or PRSI. The income has to be declared on your tax return but is disregarded for income tax purposes. For further information see the Revenue leaflet:

http://www.revenue.ie/en/tax/it/leaflets/it70.html

There is also very good information on renting a room on the Citizens Information website:

http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html

 

Welcome Getdigs.ie Homeowners rent a room scheme IrelandOnce realising that there is little “red tape” involved and that the income is tax free the next thing a homeowner needs to do is find suitable tenants. Using a low cost and secure service such as Getdigs.ie allows the homeowner to advertise the room 24/7 and screen potential lodgers without revealing any personal details. This is a significant benefit over other online services where email address, physical address or phone number is necessary. The Getdigs.ie website has very useful information on the rent-a-room scheme and offers tips, guidance and links for the homeowner. Go ahead, check out our Homeowners information page at: Getdigs.ie/homeowners/

Copyright Getdigs.ie  July 2020