Family Member Apartment Lease

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BissettJ

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My daughter and partner recently returned from Canada and are planning to move into an apartment I own in a rent restricted zone in South Dublin. The current tenant is coming to the end of a 10 month lease and has been aware of my daughters plans since before the lease was signed.

I intend to help my daughter and partner save for a deposit on their own home and as such I intend to only charge them 50% of the current rent. Also, I am aware of benefit in kind impact of this agreement for my daughter and partner and the options around reducing their tax liability through the use of the annual €3000 gift allowance to both parties which you covered recently in your column.

My query is around the most effective way to structure the rental agreement. I have a concern that if I put in place a rental agreement at 50% of the current rate then I will only be able to increase the rent by 2% when the lease ends. This would make the apartment uneconomical to rent to a non family 3rd party. I was wondering should I put in place a rental agreement at the full price but with me paying 50% of it and if I did this would I be liable for tax on the full rental amount even though my true income on the lease is only 50%
 
I wouldn’t put in place a rental agreement.

From the RTB website
”
The RTB remit does not extend to:
  • if a tenant lives with the spouse, civil partner, parent or child of the landlord and there is no written letting agreement in place.”
 
I don't think you need a written lease agreement or registration with the RTB. I don't think you and daughter need the protection of the RTB from each other.

Just charge her what you like and pay tax on the rental profits as you would in a normal tenancy.
 
You can also give 12k per year in gift if you are married and have a partner no? 3k to your daughter and 3k to her partner both from you and your wife/husband/ partner. Thats 12k a year in savings plus cheaper rent.

On another note is it not an option to gift apartment to them with cash for tax due as a loan?
Then they can live in that rent free paying 'rent' off the loan you gave for tax?
 
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