Renting a recently purchased house - a few questions

forestgray

Folks,

I've recently purchased (first time buyer) a three bed house with attic conversion in Dublin that I intend to rent out. Also intend to live there myself. The attic conversion is just slighly below the building reg limits for a bedroom, so I clearly cannot rent that to tenants. I do however intend to us it myself. I have a 50/50 fixed variable split mortgage.

I plan to rent out the three other bedrooms. Here are my questions:

1. Do I need to register as a landlord with the PRTB before advertising my rooms?
2. House only has a donwstairs bathroom, is this an issue?
3. What are the tax implications for renting out rooms? Can any rent be written off against my mortgage payments
4. I expect my additional rental income will allow me to make routine additional payments off the variable portion of my morgtage. Is there anything special required here bar writing to my mortgage provider advising them that I intend to make additional payments to reduce the mortgage term?

Michael D Not Higgins

This should answer some of your questions
http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html

1. No. You would be a live in landlord and outside the realm of the PRTB.
2. No.
3. Tax is applicable above 10,000 per annum. I think interest is only deductable against a property let in its entirety. Could be corrected on this point.
4. Check with the bank

fash

On the rent a room scheme:
It is tax free provided that it is less than 10k.
If it is 10,001, it is entirely subject to income tax etc.- so you instantly lose half of it.
Note that to calculate the 10k, you are supposed to include money paid towards bills etc.

forestgray

fash wrote: »

On the rent a room scheme:
It is tax free provided that it is less than 10k.
If it is 10,001, it is entirely subject to income tax etc.- so you instantly lose half of it.
Note that to calculate the 10k, you are supposed to include money paid towards bills etc.

Thanks fash.

shenanagans

Be careful with your house insurance. Add public liability and notify insurer that you have live in tenants. It will raise you premium but if one of your tenants has an accident and you don't have the correct insurance you could be liable.

the_syco

forestgray wrote: »

I do however intend to us it myself.

Check what rights your licensees do not have, to avoid digging yourself into a hole.

The_Conductor

fash wrote: »

On the rent a room scheme:
It is tax free provided that it is less than 10k.
If it is 10,001, it is entirely subject to income tax etc.- so you instantly lose half of it.
Note that to calculate the 10k, you are supposed to include money paid towards bills etc.

Btw- the 10k includes all billshares etc- it is the sumtotal of all the money handed over- regardless of its stated purpose.

zef

If your house has only the one bathroom would you be happy sharing it with 3 tenants? Personally I would not like to share a bathroom with 3 others. I'd say it would get pretty busy every morning

fash

Note that to calculate the 10k, you are supposed to include money paid towards bills etc.

The_Conductor wrote: »

Btw- the 10k includes all billshares etc- it is the sumtotal of all the money handed over- regardless of its stated purpose.

Ahem...

odds_on

the_syco wrote: »

Check what rights your licensees do not have, to avoid digging yourself into a hole.

Please, posters, this thread is about a licensee or lodger. Please understand and get the terminology correct.

As the-syco has indicated in his post, we are talking about licensees or lodgers who have very few legal rights when renting.

Tenants have the backing of the Residential Tenancies Act 2004, the PRTB and the Housing Standards for Rented Accommodation and other laws all of which do not apply the licensees or lodgers.

Thus, when a posters describes someone as a tenant, the mind should automatically think of all the rights a tenant has. This therefore, becomes misleading if the renter is actually a licensee/lodger.