Living in one room in a big house and renting out the other rooms

Nomis21

For example, this 9 bedroom house in Cork...

http://www.daft.ie/cork/houses-for-sale/cork-city/aaran-house-49-lower-cork-city-cork-1328000/

I don't think it would be too difficult to rent out each room @ 300 Euro a month and live from the total income of 2,400 Euro a month.

Are there any pitfalls in doing this if the house is bought for cash?

eeguy

Nomis21 wrote: »

For example, this 9 bedroom house in Cork...

http://www.daft.ie/cork/houses-for-sale/cork-city/aaran-house-49-lower-cork-city-cork-1328000/

I don't think it would be too difficult to rent out each room @ 300 Euro a month and live from the total income of 2,400 Euro a month.

Are there any pitfalls in doing this if the house is bought for cash?

LOTS of tax.

imitation

Living with 8 other people in 2000 sq ft comes to mind as a downside. I dont think you would qualify for rent a room with so many tenant's. At that end of the market you could also probably expect a fair bit of tentant turnover and maintenance.

Graham

Nomis21 wrote: »

Are there any pitfalls in doing this if the house is bought for cash?

Sharing with 8 other people.
Sharing cooking facilities with 8 other people.
Playing referee to 8 other people.

4ensic15

Nomis21 wrote: »

For example, this 9 bedroom house in Cork...

http://www.daft.ie/cork/houses-for-sale/cork-city/aaran-house-49-lower-cork-city-cork-1328000/

I don't think it would be too difficult to rent out each room @ 300 Euro a month and live from the total income of 2,400 Euro a month.

Are there any pitfalls in doing this if the house is bought for cash?

Unlikely that you would get insurance. House has to be maintained, furniture and appliances maintained and garden maintained. Take taxes and overheads off the €2,400 and see see how much would be left if some major outlay was required, such as a new boiler.

eeguy

If it was me I wouldn't tell them I was the landlord.
Might start some tension. You'd need to vet every tenant too.

riclad

You can earn up to 12k tax free from rent a room scheme ,
if you live in your own house .Rent a room scheme ,means they are not regarded as tenants, just people who pay rent to live in the house .
You might need public liability insurance .
Maybe just rent out to 5 people ,to get the 12k limit .
i,d prefer to rent out maybe 2 rooms to one person ,
for 150, than rent to 2 people for 200 euro.
if you are in a good area , near a college , rich students will pay extra
to have extra space and a large room.

http://www.revenue.ie/en/tax/it/rental-income.html
Rent-a-Room Relief


An individual who lets a room (or rooms) in his or her sole or main residence as residential accommodation may be exempt from income tax in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied in connection with the letting does not exceed the threshold for the year in question

rent a room scheme means each bedroom does not have to have
its own bathroom.

say a house in dublin is advertised for 190, it might end up selling for 240k.
I do,nt know what the property market is like in cork.
Or what the rates for renting a room is .

athtrasna

Limit is now 14K for rent a room! It's also based on total income including bills

pilly

Looks like a lot of renovation and maintenance would be needed.