Advice for renting

lovehathi

Hi everyone

We have bought house which has four bed room and extended and newly refurbished kitchen and bed rooms. House we bought is on Mortgage.

Now we want to rent two double bed room for single person.

If anyone knows can i do it , also do i have to make contract with the tenant and also do i have to hire solicitor for these.

I read so many incidents on this forum tenants not leaving house and not paying rents so just scared about all this

Thanks

The_Morrigan

Yes you may do it, but it is not renting in the technical sense if you are going to be living in the property.

In this instance, you would be availing of the rent a room scheme, which allows owner occupiers to 'rent' out their spares rooms to people.
The scheme is not governed by tenancy law (RTA 2004) and you do not have to register as a landlord with the PRTB. You do not need to have a lease (in fact I would strongly advise against it) as everything is based on the fact that the lodgers are under licence (guests) in your house and you may ask them to leave at any point.
You are allowed to receive 12K in euro (total amount) without paying any tax. Any amount over that - even by 1 euro - means the entire amount is taxable.
It would be prudent to received a fixed amount every month (rent + bills) from your lodgers in order to make the total easy to tally up and do the tax return. Otherwise you must keep receipts for all rent received and any monies received from bills/food etc in the off chance that the revenue decide they want to audit you. You also may fall foul of the 12K limit if the bills cause you to go over and you then must pay tax on the entire amount.

I would suggest you set up an account for receiving rent via standing order every month, which would make it easy to produce statements if you were ever audited.

More information can be found here

whomitconcerns

FYI the 12k limit is per owner occupier not per room. So if you renting 2 rooms its 6k per room max!!

cerastes

whomitconcerns wrote: »

FYI the 12k limit is per owner occupier not per room. So if you renting 2 rooms its 6k per room max!!

Its per owner occupier so its 12k max, not per room, the OP needs to work out how much they can charge per month or just make sure you dont exceed the annual limit, by not letting for the entire year (ie students) or just advertise it on a shorter term basis, someone is probably looking for that too.
There is no per room figure

whomitconcerns

cerastes wrote: »

Its per owner occupier so its 12k max, not per room, the OP needs to work out how much they can charge per month or just make sure you dont exceed the annual limit, by not letting for the entire year (ie students) or just advertise it on a shorter term basis, someone is probably looking for that too.
There is no per room figure

That's what I said.

Mrs OBumble

Is it per owner-occupier, or per house?

If the OP has a partner who jointly owns the house, then I don't think that it's 24.

You'd have to check with Revenue to be certain.

whomitconcerns

Mrs OBumble wrote: »

Is it per owner-occupier, or per house?

If the OP has a partner who jointly owns the house, then I don't think that it's 24.

You'd have to check with Revenue to be certain.

based on my reading I am taking owner occupier as being a single entity. So 12k is the amount that they would have as a limit. ie the owner of the house is "Mr and Mrs Smith" its one entity jointly and severably liable for the mortgage and as such the "benefit"

JuliusCaesar

Oh, and inform your insurers, as this may impact on your house insurance.

lovehathi

just wondering is getting alarm fitted buy professional is covered in HRI scheme

cerastes

HRI?

lovehathi

cerastes wrote: »

HRI?

home renovation scheme

Woshy

lovehathi wrote: »

just wondering is getting alarm fitted buy professional is covered in HRI scheme

According to the revenue website the fitting of alarms are covered

http://www.revenue.ie/en/tax/it/reliefs/hri/hri-general-faqs.html