ARP and Rent Supplement?

theguzman

So basically my house which was long term let has surprisingly become available to me again much sooner than expected. I released my tenant from their long term lease early as they are leaving for greener pastures.

Its a 5 bed and rather than long term letting it to a single couple I'm thinking this if it is feasible.

Room 1: Grandmother of the Ukrainian mum and Child Ukrainian ARP €800

Room 2: Ukrainian Mum and Child as one parent family on €525 Rent Supplement

Room 3: (en-suite) Ukrainian couple (unrelated) on €410 on Rent Supplement

Room 4: small box room or home office, can be for young child of Ukrainian mum.

Room 5: for myself.

The ARP is not taxable.

I can claim the rent a room scheme up to €14,000 giving me €935 per month or €11,220 annually tax free under the Rent a Room Scheme + €9,600 ARP Tax Free annually. Giving a total yield of €20,280 tax free in theory.

Some concerns I have; the Ukrainian couple work part time minimum wage jobs plus receive a reduced welfare allowance; could they still qualify for Rent Supplement? I understand if Rent Supplement is sanctioned that they are expected to pay back so much similar to a social housing contribution?

All 4 adults have agreed they will contribute €25 per week into a kitty for to cover utilities and common items, electricity, kerosene, broadband, toilet paper etc. I'll retain control of the bills and the onus is on everyone to keep bills low for a end of year return divided equally; I'm not seeking to profit rather than ensure there is plenty heat, no need to scrimp with 2 minute showers etc.

In their current state provided IPAS accommodation they are paying €325 per week @ €70 per adult x 4 and €45 for the Child, so it represents a big saving, a move to an urban nice location and freedom for them since they can't leave the IPAS centre for even one night to take a holiday etc. Ukrainians in state accomodation centers are now effectively imprisoned and can't go anywhere for even 1 night.

From my own point of view it gives me far more control, security of payment via state payments, and since they rent a room are licensees with a Landlord agreement as Licensees. If there was any antisocial or problematic issues I can ask them to leave far easier than a regular tenancy. They are very grateful people receiving welfare etc and want to work which is not possible in a very remote location so a move to my house would represent a big step up in their lives.

Is all of this doable or am I missing something?

meijin

https://www.boards.ie/discussion/2058329461/arp-and-rent-supplement

no, you're exceeding the 14K limit; this is the limit of ANYTHING they can pay you

• "kitty box" - to be included in the limit
• any extra bills - to be included in the limit

are you going to live there? or "keep a room"? RTB will rule it as a fake license, and declare your occupants as tenants if anything goes wrong

leanbh

https://smartfinance.ie/qa-will-i-pay-tax-on-the-income-im-receiving-for-housing-ukrainian-refugees/

According to the above, they're separate payments so you can combine rent a room (subject to 14k ceiling) with arp