Already owned rental property and daughter going to University

[Dr Strangelove]

We have a single agreement registered with RTB, with all tenants listed on it.
It is in an RPZ.

In that case you can’t have any effective subdivision.

You can let your daughter live there rent-free but it would lead to a reduced rent for the whole property and you would be limited to an increase of 2% or HICP whenever she leaves.

 

[T McGibney]

You can let your daughter live there rent-free but it would lead to a reduced rent for the whole property and you would be limited to an increase of 2% or HICP whenever she leaves.

Are you sure that's true? It doesn't make logical sense as in one case only part of the property is being let and in the other the full property is being let?

 

[Dr Strangelove]

Are you sure that's true?

I’m pretty sure but open to correction.

The whole property is being let to six tenants on a joint basis in the above scenario, just that one tenant gets a 100% discount.

It might be different if all tenants had individual leases.

 

[T McGibney]

The whole property is being let to six tenants on a joint basis in the above scenario, just that one tenant gets a 100% discount.

It makes no sense to include one's child in a legal tenancy agreement that otherwise involves total strangers.

The idea of a tenancy involving a 100% rent discount makes no sense either. Logic would suggest that if no rent is charged, there's no tenancy.

I recommended way back in this thread that the OP seek legal advice as this whole area is so complex.

 

[_OkGo_]

The monthly rent is 6 x 780. This tenancy is registered with the RTB.

We have mortgage with monthly interest of about 900/month that we expense against the rental income.

So say the total rent is now 700/month by 4 plus 400/ month for cousin. The yearly rent is now down to 38,400 for whole house

So your current rent is €56.2k. To place your child in the property, you would be dropping almost €18k in income. If your child is there, I also don't think you can claim the full expense of interest. In net terms, you are down ~€10k.

That is surely more than what you could pay in rent elsewhere for your child especially if only for term time.

I think it's a bad idea overall, why would you give discounts to friends and family. If they didn't live in your property, would you still contribute to your niece/nephews rent or to her friends rent? No you wouldn't.

The risks far outweigh the reward. I wouldn't go messing with RTB, rent in RPZ for the sake of 3 years in uni. You would also be putting a lot of pressure on your child to be the de facto in house landlord. You really don't know what her friends could be like so better to keep it at arm's length.

I recommended way back in this thread that the OP seek legal advice as this whole area is so complex.

Fully agree, if OP does anything it should be to proceed cautiously and with legal advice

 

[moneymakeover]

It makes no sense to include one's child in a legal tenancy agreement that otherwise involves total strangers.

The idea of a tenancy involving a 100% rent discount makes no sense either. Logic would suggest that if no rent is charged, there's no tenancy.

I recommended way back in this thread that the OP seek legal advice as this whole area is so complex.

Allow daughter to live there
Rent obviously goes down
Afterwards tell rtb you have another bedroom to let hence rent goes up
It's not rocket science
rtb are people too

 

[Leo]

Afterwards tell rtb you have another bedroom to let hence rent goes up

In this event the property has not undergone any changes and so would fail the tests for substantial change.

Why mess with that when you're talking about renting by the room to students who would meet the criteria for licencees?

 

[moneymakeover]

But is he using licensee currently?
I'm a landlord and i don't know anything about licensee

 

[Leo]

But is he using licensee currently?
I'm a landlord and i don't know anything about licensee

Not using it currently wouldn't prevent him from doing so in the future.

Some of the details of permitted license arrangements are outlined on the RTB site.

 

[lff12]

Why not give one room to your daughter

continue the other 5 rooms with foreign students

I would do this. I would not put a young person into the "lead tenant" or even worse, substitute landlord scenario. I've shared with "friends" on a co-tenant basis and it was mostly bad, I can only imagine how much worse it would be if they had been 10 years younger & I was stuck there as lead tenant or sub landlord - having another person to pay rent and contribute to utilities to at least backed them into doing that. If you are going to let her friends live there, let them answer to you as the landlord, not your daughter. "Friends" are very quick to take advantage of a young person in a fortunate situation like that.