Rent-a-room scheme advice needed

Kayce

Hi all, 

After searching for hours through countless sites, I am still not clear on the below questions. We have recently bought an apartment, which is our permanent, sole residence. Now, we have a spare room, which I was thinking of renting out under the rent-a-room scheme as we don’t need it until a baby is on its way and there are more than enough people in need of a room, as we all know. 

What exactly is the timeframe for this scheme? Everywhere I looked it says, it doesn’t apply to short-term lets – but what exactly defines a long-term? 6 months, 1 year, longer? 

“The relief applies only to residential tenancies, not to short-term guest arrangements. The occupants must be using the room on a long-term basis. For example, renting a room to a student for the academic year or for a one-month course is covered, but taking in guests for short breaks is not. (If you normally rent out the room for the academic year and you rent it out for short breaks during the summer as well, you must identify the income you get from the short rentals, separately from the income that qualifies for rent-a-room relief, when making your tax return to Revenue.)”

Do rent pressure zones apply to this and do I have to go after the market rate? 

We are not looking to charge some crazy rate, but want to make sure, we are in line with regulations. 

Any advice is greatly appreciated. 
Thank you.

punisher5112

You can earn 14k tax free.

If you live there they are only a licensee and they really have no rights at all.

Draw up house rules and what you expect and price and deposit etc.

If you want to add say minimum notice and that it's fine but you can basically tell them to leave at any time.

nuac

Mod
Open for general discussion, subject to forum rule on legal advice

Caranica

The short term lets line includes a note along the lines of "including those bookable online", basically Airbnb and the like are not eligible.

L1011

RPZ does not apply to licencee agreements. Don't think there's any settled definition of short term other than you'll know it when you see it.

The 14k includes everything - can't add bills on as extra - and €14,000.01 total taken means you're taxed on €14,000.01 not .01.

CeilingFly

I'd be thinking that short term lets are those under 90 days.

Certainly in planning for hotels it states they are for short term lets of under 90 days.

Kayce

L1011 wrote: »

RPZ does not apply to licencee agreements. Don't think there's any settled definition of short term other than you'll know it when you see it.

The 14k includes everything - can't add bills on as extra - and €14,000.01 total taken means you're taxed on €14,000.01 not .01.

Thanks! Does that mean that the total of 14K is rent + electricity, gas bills? As in, the bills are added into the total amount?

CeilingFly wrote: »

I'd be thinking that short term lets are those under 90 days.

Certainly in planning for hotels it states they are for short term lets of under 90 days.

Ah ok, we were thinking 6 months.. that should be ok then..

Samuel T. Cogley

Kayce wrote: »

Thanks! Does that mean that the total of 14K is rent + electricity, gas bills? As in, the bills are added into the total amount?

It includes everything you charge for. So including bills it has to be kept to 14K or under. It's tax free but you must do a declaration.

Kayce wrote: »

Ah ok, we were thinking 6 months.. that should be ok then..

Yes thats fine.

Kayce

Samuel T. Cogley wrote: »

Kayce wrote: »

Thanks! Does that mean that the total of 14K is rent + electricity, gas bills? As in, the bills are added into the total amount?

It includes everything you charge for. So including bills it has to be kept to 14K or under. It's tax free but you must do a declaration.

Kayce wrote: »

Ah ok, we were thinking 6 months.. that should be ok then..

Yes thats fine.

Thats great, thanks for the advice!