Homeowners of Ireland, thinking of renting a room in your home on a Monday to Friday basis? Getdigs.ie have exciting news! It’s a lot easier than you thought. There is no red tape and no tax to pay! Read on…
Legal details of Renting out a Room
Many homeowners thinking about renting out a room or rooms in their own home 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, thankfully, 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.
Income Benefits of Renting out a Room
So now that we know that 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 Covid19 and restrictions the Government continue to leave 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
This rent a room relief is obviously very welcome and can contribute to mortgage payments or even that overdue holiday you so well deserve!
There is also very good information on renting a room in your own home on the Citizens Information website:
http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html
Partial renting (or Fractional renting as it is sometimes referred to) is becoming very popular also. Accommodation Monday to Friday has become a new phenomena as it suits a lot of Lodgers to go home on weekends to socialize or play their football matches and it means the Homeowner has the house to themselves on the weekends! Monday to Friday suits some Lodgers/Homeowners but for others it may be Sunday to Thursday. It’s really what suits both parties that matters.
Once realizing 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.
Benefits of using GetDigs.ie when Renting out a Room
Getdigs.ie uses an online SMS messaging system, embedded in the website itself, which allows the Homeowner and the Lodger to communicate online. This affords the Homeowner a good vetting process to ask pertinent questions to the potential Lodger. Once the Homeowner is comfortable with the Lodger they can arrange to meet in a public place to discuss further.
Our 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/
We also recommend the homeowner draws up a basic house rules guidelines that should be agreed and signed by both the Homeowner and the Lodger prior to the Lodger moving in. This is all documented in our Homeowners section on our website. We encourage you to read this.
If you would like any of your queries answered please just drop us a mail at admin@getdigs.ie or fill in the brief ‘Contact Us’ form at Contact Getdigs.ie
Copyright Getdigs.ie November 2020