Advice on Rent a Room

bunnyarmstrong

Hey folks just a quick question...

Unfortunately I'm recently on jobseekers but I'm lucky enough to have a mate who rents out a room to me. I pay him 250/month.

Social welfare asked me for a lease agreement, which we don't have. My mate wrote out a letter stating that I didn't need a lease agreement and all was good until this morning.

Basically I'm being asked for a rent book now and since my mate is just taking cash in hand etc we haven't got anything along these lines. Are these easy to get/print off? I was under the impression that I didn't need one.

Thanks in advance.

The_Morrigan

You don't need one as you're not a tenant.
Maybe go here http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html and print this off for the social welfare. Make sure your friend is also declaring the income to revenue, if the dsp are investigating this they may share the information.

You can pick up a rent book in Easons, they are only a couple of Euro.

bunnyarmstrong

Cheers, I thought I didn't need one alright.

I think I'll just get one and fill it out, make them happy.

Thanks very much for the quick response!

MarkAnthony

Best to have one anyways and by a couple they are indeed about €2.

Mrs OBumble

You don't need a rent book under tenancy legislation, as you're not a tenant. But there is nothing to say you may not have one, and some people operating the rent-a-room scheme do use them, becuase it provides a simple signed-off record of what was (or wasn't!) paid. You can pick up a simple on cheaply from Easons.

And if you want to be claiming rent-allowance as well as JA or JB, then you do need one (because Welfare insist) - and it is very foolish for your friend not to be declaring the income. (Does he know that he's allowed to get up to 12k tax-free, just so long as he declares it?)

Maybe ask the mods to move this to State Benefits if you want more advice about dealing with Welfare, it's not something whiich many A&P posters know much about.

bmwguy

The_Morrigan wrote: »

You don't need one as you're not a tenant.
Maybe go here http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html and print this off for the social welfare. Make sure your friend is also declaring the income to revenue, if the dsp are investigating this they may share the information.

You can pick up a rent book in Easons, they are only a couple of Euro.

Your friend can earn up to 10k a year from renting out rooms in his primary residence without being liable for income tax so don't let him worry about tax issues.

MarkAnthony

bmwguy wrote: »

Your friend can earn up to 10k a year from renting out rooms in his primary residence without being liable for income tax so don't let him worry about tax issues.

+2K :pac: I'm pretty sure it's 12K now.

hopgog

bmwguy wrote: »

Your friend can earn up to 10k a year from renting out rooms in his primary residence without being liable for income tax so don't let him worry about tax issues.

If his friend is also on social income the rent would be counted as income and his cliam might be closed. If your friend is also on the dole op ask him before you do anything.

The_Morrigan

bmwguy wrote: »

Your friend can earn up to 10k a year from renting out rooms in his primary residence without being liable for income tax so don't let him worry about tax issues.

You still have to declare it to the revenue every year.

campingcarist

When I rented a room in a house with a live-in landlord, I just had a letter from him stating that I was renting a room in his own house and what the rent was. I think the letter also had his PPSN.

bmwguy

The_Morrigan wrote: »

You still have to declare it to the revenue every year.

Really? I rent a room to my brother and his girlfriend and I never knew this. I do believe you though

The_Morrigan

bmwguy wrote: »

Really? I rent a room to my brother and his girlfriend and I never knew this. I do believe you though

I'd get right on that if I were you - there is a link further up on this thread from citizens advice, should give you all the links to revenue etc that you require.

I do my declaration via the online system every year, it comes under exempt income and you've to input all monies received (rent and any contributions to the household)

The_Conductor

Social Welfare (DSP) seem to be doing a bit of a crack-down. I'm personally aware of 7 or 8 cases of rent-a-room situations where they are demanding the person procure a 'lease' from the owner of the property.

Given the propensity for trouble for the owner- I'd thread very softly on this one.

First off- you can pick up a rent book in Easons for 2 or 3 quid. Its a small note-book type affair which just records the cash you give the owner- and is initialed by the owner on receipt of the money.

Vis-a-vis a 'lease' the very best that the owner can do without getting themselves tangled in all manner of trouble with DSP, Revenue and God only knows who else- is a single sheet of paper- stating that you are staying with them, in their principle private residence, under licence, and your residence there is not subject to the 2004 Residential Tenancies Act.

If the landlord puts their PPSN into the letter- they are inviting people to go and look them up on the system- and DSP, Revenue and the other government Departments, contrary to what many people presume- do share information with one another.

Sit down with the owner- come up with a few lines that you are both satisfied with- along the rent-book- and send all of this into Social Welfare.

Be careful- and cognisant- of each other's situations. Only use PPSNs where absolutely necessary.

The_Conductor

The_Morrigan wrote: »

I'd get right on that if I were you - there is a link further up on this thread from citizens advice, should give you all the links to revenue etc that you require.

I do my declaration via the online system every year, it comes under exempt income and you've to input all monies received (rent and any contributions to the household)

I do a declaration using ROS as well- its neat and handy. One thing- if you're claiming deductions and/or medical costs- make damn sure you keep every single little piece of paper. And keep everything going back 5 years- put it in a cardboard box in the attic- or where-ever. Revenue randomly audit people- and anyone with income other than strict PAYE is at an enhanced chance of being audited.

Keep absolutely everything- and ideally- keep it sorted in a logical manner- you don't want an auditor stuck at your kitchen table for 2 days trying to decipher the contents of a series of biscuit tins.

hanna200

Hey folks, it's interesting topic. In 2013 I rented out a spare room for two months to student.
Last year in November I decided to give it a go again, in December we found another young person so the room has been let.

Since this person is not very often available to meet (due to lifestyle), we were considering to ask for a bank transfer to my bank account.

Have anyone of you had any experience with renting out a room and receiving monies to the bank account, is it advisable?

I've done my tax return in last October including income from the room and the contribution to the household.

Any pros/cons of doing it through the bank account?

The_Conductor

Pro- no chasing the person every month and you don't have excess cash on you. Con- well, you're declaring it properly and everything- so I don't see any con.......

The_Morrigan

Hanna that is the only way I deal with the rent in this instance. I have a 'House Account' that has all incoming/out going expenses for the house. I use this as my proof of rent received on the off chance that an auditor may land on my doorstep.