Question on letting out a room

D

Donrr123

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I am planning to buy a house and letting out a room, for example if I have a house with 3 bedrooms and thinking about letting one out. I have the following questions and anyone can help please?

  1. I understand there is rent-a-room scheme, for €14,000 tax free and it has to be my PPR, I do not need to register on RTB but rather giving out a licensee agreement. What if I do not opt into this scheme? Does it still has to be my PPR to let out a room and do I need to register on the RTB?
  2. If I assume worst case scenario, when the lodger stops paying rent or refused to move out, what are my rights to get this lodger out? I have checked it seems like I cannot enter into lodger's room and touch their belongings, correct me if I am not correct. At the same time I am not registered on RTB so I am not sure who I will be dealing with.
  3. Although I am not require to register on RTB for letting out a room(Would owner occupied or not makes difference too?), but I wonder does registering on RTB would give me more protection in case if the worst case scenario happens?
  4. If I opt into rent-a-room scheme, it seems like it is also including bills (Electricity, boardband, waste, gas) as part of the rental income, so I assume the best case to do is including all bills for example €1000 per month? So I would have a steady €12,000 tax free each year?
  5. It also sounds like a hassle if not including bills because if the lodger decided to move out for example the middle week of the month, that would be hard to calculate all bills rental income (As for rental income tax purpose as well as if new lodge moves in so I have to do all calculation again?), I am not sure how other people deal with it if they are splitting bills and someone moved in and out.

I would be appreciated if anyone can give me some advise. Thank you!
 
FIrst and only important question - will you be living in this property as your PPR?
 
Hi Danny, I can do either PPR or not, but I want to see my options.

Thank you Sue I will have a look later
 
DannyBoyD said:
That doesn't make sense, its either your home or it isn't your home.
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"A Principal Private Residence (PPR) is a house or apartment which you own and occupy as your only, or main, residence.", from citizen information.

Just because I buy a house it doesn't mean it has to be my PPR, I can buy it and rent it out, in this example I am thinking to rent out a room, but I can do both PPR or not, meaning it can be owner occupy as my main residence if I wanted to, depends on what are the options I want to go for.

I mentioned on the 5 questions, the first question is what are the options if I don't opt into the rent a room relief and just file it as a rental income minus expense and do I need to register on RTB or it is a licensee agreement since it is only renting out a room. I want to compare the option between if I do PPR and not PPR. I am basically asking if it is my PPR but not opt into the rent a room relief, do I need to register on RTB? What if it is not PPR and I am letting out a room, do I need to register on RTB?
Sue Ellen said:
If you have a read you may get some answers to your questions above
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Hi Sue, I have already read all those information but it does not answer my question above.
 
@Donrr123 - be clear Rent a Room Relief does not apply to a property that is not your PPR.

Second how much time you spend in PPR does not need to be 100%

Be very careful with Licence Agreement as some are drafted that they are in fact Leases. The fact that it is or isn't a lease wont change the rental income tax liability.

Some of the expenses you have mentioned might not be deductible.
 
Donrr123 said:
Just because I buy a house it doesn't mean it has to be my PPR, I can buy it and rent it out, in this example I am thinking to rent out a room, but I can do both PPR or not, meaning it can be owner occupy as my main residence if I wanted to, depends on what are the options I want to go for
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You seem to be confused.

If you buy a property and do not live there; it cannot be your PPR.

In which case forget about rent-a-room, it doesn't apply.

So lets start there.

If you are renting the property, the RTB requirements apply.

In my view, it is easier to let the entire property, than to rent each room separately. You will have to decide if the additional overhead is worth the effort.
 
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