Letting out a room - but never there

Grandpa Hassan

I've moved to London but have a 2 bedroom apartment in Dublin. Very high quality.....just been fully refurbished, balconies, views over the park etc. I visit Dublin once or twice a month for a long weekend - Thursday/Friday through Monday.

I am not going to rent it out. I like going back there and don't want to be staying in hotels. It's like a holiday home I guess.

But Im thinking of renting a room (the larger one). Any suggestions on how I pitch that (on daft etc)? Whoever moves in will have the flat to themselves almost all the time. It'll be like leasing the whole place, but with a LL who stays the odd weekend. So a price I guess somewhere above a rent-a-room price, but below a formal lease.

Anyone in a similar arrangement?


(Before anyone mentions it, I am tax compliant in Ireland. I have other things going on in addition to having an apartment, and employ an accountant in Dublin. So I'll ignore any comments on whether I'm paying tax)

MarkAnthony

Why not pitch it exactly as you just have done?

I'd also try and get a professional who goes away at the weekends. Best of all worlds for everyone.

Grandpa Hassan

MarkAnthony wrote: »

Why not pitch it exactly as you just have done?

I'd also try and get a professional who goes away at the weekends. Best of all worlds for everyone.

The Monday to Friday professional option would be ideal, but not quite close enough to the City centre. Need to be walking distance to the office for someone really....and this would be 30 mins to O'Connell St

I'll pitch it like that....just wondering how much of a premium over a normal rent-a-room the arrangement might be worth

MarkAnthony

With rents like they are I think you'll be grand getting someone. I'd go 75% of market value of a one bed apartment and see how you get on I guess.

gabsdot40

A friend of mine rents a flat with this type of arrangement. It works pretty well except the owner has rented out both bedrooms so they wake up sometimes to find the owner asleep on the couch.

the_syco

Grandpa Hassan wrote: »

I've moved to London but have a 2 bedroom apartment in Dublin. Very high quality.....just been fully refurbished, balconies, views over the park etc.

Go for the Mon-Fri non-Dublin person. You'll get quite a few who can't do the commute, so just rent for the week, and back home for the remainder.

Have it clear though, that the rent is cheaper as you want the place to yourself at the weekends, to ensure you don't get someone who pays for the Mon-Fri, but plans on staying there the full 7 days.

IWillFindYou

My advice is get any potential arrangement in writing and signed by you and tenant. Any "informal" arrangements, like only staying weeknights, are wide open to abuse by a tenant. As for price I would say half way between a double room in a house share and a 1 bedroom apartment in your area.

The_Conductor

Also- look into the tax implications of what you're proposing.
As you're tax resident in the UK- you do not get an Irish tax free allowance.
All income is taxable- and if you're not letting the whole property- the large part of cost that you could use to shield the income- 75% of the mortgage interest- also doesn't apply........

If you are to do this legally and above board- its very damn expensive.......

I'd also echo what has been said here about getting it copperfastened in an agreement. Make sure its not called a tenancy or a letting agreement- you*do not* want to give this person rights- other than as a licensee in your home- and you do not want the RTA to apply.

Its a series of rules- which can say whatever you want them to say- but if you grant 'tenancy rights' to the person- you are up the creek without a paddle..........

Grandpa Hassan

The_Conductor wrote: »

Also- look into the tax implications of what you're proposing.
As you're tax resident in the UK- you do not get an Irish tax free allowance.
All income is taxable- and if you're not letting the whole property- the large part of cost that you could use to shield the income- 75% of the mortgage interest- also doesn't apply........

If you are to do this legally and above board- its very damn expensive.......

I'd also echo what has been said here about getting it copperfastened in an agreement. Make sure its not called a tenancy or a letting agreement- you*do not* want to give this person rights- other than as a licensee in your home- and you do not want the RTA to apply.

Its a series of rules- which can say whatever you want them to say- but if you grant 'tenancy rights' to the person- you are up the creek without a paddle..........

I know the implications, like I said in my opening post. I have complex tax affairs in Ireland and have an accountant. Any residual income is extra, because my alternative is to leave it empty.

My only question was around price. I will pitch it at between a double room share and a 1 bedroom apartment let

The_Conductor

I would pitch it midway between a house share and a single bed apartment.
I would also pay a little extra to have someone draw up an agreement that copper fastens the fact that the person is a licensee and not a tenant- and under no circumstances is entitled to tenancy rights.

murphaph

The_Conductor wrote: »

As you're tax resident in the UK- you do not get an Irish tax free allowance.

Assuming you meant to write "tax credit", then this is not always the case.

EU citizens who let property (or otherwise derive income) in Ireland but who are tax resident in another EU state are entitled to apportioned tax credits.

The apportioning is determined by the ratio of Irish income to worldwide income. If the Irish income exceeds 75% of worldwide income, the person is actually entitled to their Irish tax credits in full.

dearg lady

The_Conductor wrote: »

and if you're not letting the whole property- the large part of cost that you could use to shield the income- 75% of the mortgage interest- also doesn't apply........

I didn't realise this! Woudl you have a link by any chance?

The_Conductor

dearg lady wrote: »

I didn't realise this! Woudl you have a link by any chance?

Hi Dearg Lady- this link here explains it all.