Rent Allowance Query, with family owned home.

Xios

Hey, I'm just exploring contigencies.

I'm working full-time on a temporary contract, living at home. My dad owns a house in meath. If I pay rent to my father for the house. And then when this job contract runs out and i'm fecked for employment prospects, would I be eligible for Rent allowance on that property?

Max allowed in Meath is €390.

I have no intention of being on rent allowance, but I'd like to know there's a safety net should i be out of a job in 8 months.

Also, the house is not rented at the moment, to be eligible for rent allowance, does the property need to be registered as a rented property or how does that work?

mrsbyrne

First of all in order to quality for rent supplement YOU need to be either on the housing list or renting for 6 months and been in a position to pay the rent when you moved in and had good expectation of continuing to pay the rent. Secondly, as it is your parents property, it needs to be a bona fide tenancy, ie the property has to be registered with the PRTB, you need to be registered as a tenant, and there needs to have been a registered history of your dad letting that house.
That's before you ever get to the means test etc.
Just to say the CWO here just doesn't give RS to tenants renting from close relations.

Xios

mrsbyrne wrote: »

First of all in order to quality for rent supplement YOU need to be either on the housing list or renting for 6 months and been in a position to pay the rent when you moved in and had good expectation of continuing to pay the rent. Secondly, as it is your parents property, it needs to be a bona fide tenancy, ie the property has to be registered with the PRTB, you need to be registered as a tenant, and there needs to have been a registered history of your dad letting that house.
That's before you ever get to the means test etc.
Just to say the CWO here just doesn't give RS to tenants renting from close relations.

Thanks for the info. Yeah I assumed that they'd do that to stop people exploiting the system. But i'm intending to move into his house based on the assumption that i'll be able to afford living there far into the future, no point moving if i'm outta work and won't get any rent supplement.

So i'll try sort that stuff out with him in the meantime.

MouseTail

I thought you couldn't recieve rent allowance in a house owned by an immediate family member.

mrsbyrne

MouseTail wrote: »

I thought you couldn't recieve rent allowance in a house owned by an immediate family member.

You can, but only in very exceptional circumstances which I outlined in my post.

Pablodreamsofnew

You cannot receive rent allowance for properties owned by parents! You can for siblings though. You must be renting privately for 6 months and have your name on local housing list. Sometimes they will overlook the 6months renting privately if there is a reason you need to leave home.

Xios

MrsYelnekoff wrote: »

You cannot receive rent allowance for properties owned by parents! You can for siblings though. You must be renting privately for 6 months and have your name on local housing list. Sometimes they will overlook the 6months renting privately if there is a reason you need to leave home.

Grand so, no safety net there. Will just have to stay employed then, shouldn't be that hard with economy in the upswing. (i think)

small investor

You can get rent allowance 4 house owned by ur parents but it has to have been a legitimate rental before u rent from them, and u have to be genuinely entitled to the payment.

myshirt

It's a connected party relationship. A market rent will be imputed.

In other words, you won't get the rent allowance if the genuine market value of the rent is above €390, but has been dropped as you are his son.

If the genuine market value is €390, you are fine. You don't even need to pay him the €390 if that's the arrangement you have, but he'll be income taxed on the notional figure of €390 anyway at 55%.

Now let's say you don't get rent allowance and just move in anyway, throwing him a few quid here and there, be careful that you are not triggering any gift tax implications. I've had clients who put their children into their second home for free (dublin). Was regarded by Revenue as a gift of €18,000 per year, and they got a nice hefty bill and fines in the end for thinking what they were doing was grand.