Granny flat rental rules

skir2000

Hi,

I am in the process of buying a house as a first time buyer. I have my eye on a property that has a granny flat completely independent from the main house, which obviously would be a major help to my mortgage repayments.

What are the rules and regulations for renting a property such as this? For example, one thing I know is that in order to be eligible for the rent a room tax exemption there needs to be access between the main abode and the flat.

I am particularly curious about the following:
1. Access to the flat, there is a 2-3 foot gap (seems very narrow) between the wall of the garden and the front door. Is there a minimum gap for this in order to rent the property. For example, you would not fit a wheelchair down the gap and in the door.
2. Plumbing/heating: the flat has 3 rooms all separated by a small hallway. The hall has an A/C unit that is the only fixed heating system in the flat. Is there a rule about providing a proper fixed heating system in each room, like electric heaters?
3. I believe the tax rate is 40%? If I need to carry out repairs on the flat would I be able to write this off against the tax?

Are there any other obvious things I should be wary of?

Thanks!

percy212

Would you put a granny in a flat with a dangerous front door and no heating. I wouldn't. I think the structure is an 'office' although to call it that is a stretch. Its a garage isn't it. Knock a big hole in the side of it and park your car.

MarkAnthony

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section11 (Read the PDF)

Gives details of the requirements.

If you qualify under the RARS then the requirements are quite relaxed in relation to the standard of the accommodation, that said you could still be sued if an accident happens.

Tax rate will depend on your earnings; the higher rate is effectively 53%.

skir2000

Thanks for the details, it's exactly what I wanted 👍

Marcusm

skir2000 wrote: »

Hi,

I am in the process of buying a house as a first time buyer. I have my eye on a property that has a granny flat completely independent from the main house, which obviously would be a major help to my mortgage repayments.

What are the rules and regulations for renting a property such as this? For example, one thing I know is that in order to be eligible for the rent a room tax exemption there needs to be access between the main abode and the flat.

I am particularly curious about the following:
1. Access to the flat, there is a 2-3 foot gap (seems very narrow) between the wall of the garden and the front door. Is there a minimum gap for this in order to rent the property. For example, you would not fit a wheelchair down the gap and in the door.
2. Plumbing/heating: the flat has 3 rooms all separated by a small hallway. The hall has an A/C unit that is the only fixed heating system in the flat. Is there a rule about providing a proper fixed heating system in each room, like electric heaters?
3. I believe the tax rate is 40%? If I need to carry out repairs on the flat would I be able to write this off against the tax?

Are there any other obvious things I should be wary of?

Thanks!

Your issues will be whether the granny flat is attached to the main building or merely adjacent to it and whether there is any relevant planning condition.

Clive

One thing to be aware of OP, is that though Revenue may class it as qualifying under "Rent a Room" the PRTB may not.

If they class it as a tenancy, rather than a licensee situation, you will have fall into line with the Residential Tenancies Act - minimum standards, notice periods, registration etc.