Renting to grandchildren

jiminho

Hi folks - my grandfather (grandmother has passed) is going into a nursing home shortly and there is no plans to sell his home for the foreseeable future. The parents and their siblings want to rent it out and have offered it to us to rent. Myself and my wife along with one child are living much further out of town and this presents a great possibility for us to live near work and family where before we couldn’t find any suitable rentals. They have got the market rate for the rental and it’s higher than we can afford but my question is, is there some tax savings for renting to family or anything along those lines? Both sides want to keep everything above board but we want to take advantages of any possible tax credits etc

jumbone

Maybe you should be a caretaker rather than a tenant in exchange for reduced rent

Sort of like

https://m.independent.ie/life/home-garden/want-a-decent-dublin-city-two-bed-for-480-a-month-heres-how-to-become-a-property-guardian-36971751.html

Hontou

If it is still technically his ppr then it may fall under the rent a room scheme from your grandfathers perspective so he can collect up to €14000 a year from you tax free. But I may be incorrect if he is now in a nursing home. If it is rented under market value, there may be a CAT issue. Talk to an accountant about this.

surrender monkey

If the grandfather is going into a nursing home and the family are using the fair deal scheme then the scheme will take most of the rent . The family would need to look into that anyway.

If you are in receipt of HAP check if you will still qualify?

AFAIK, there are rules around renting to family members.

Rent a Room wont apply.

If you do go ahead I agree with doing everything legal including lease registering the tenancy etc otherwise it could get very messy.