Rent by the room

K

kildon

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Hi, existing tenants are leaving and pay 1200 a month rent, 600 below market level, at least. Can the landlord rent the apartment by each bedroom, say charge 600 for each bedroom and therefore get the market rent but through multi occupancy tensnt agreements? If this cant be done they will sell it as it doesnt make economic sense
Thanks
K
 
I'm open to correction from anyone who has successfully done so; but the RTB system is not configured to allow multiple leases for the same address.

You register the tenancy once, with multiple names.

Alternative is to rent to Ukrainian at €800 pm tax free for two years, no RTB registration; and then you can relet at market rate when the two years is up.
 
kildon said:
say charge 600 for each bedroom and therefore get the market rent but through multi occupancy tensnt agreements?
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One option is to move back in yourself and let the two rooms. Occupants would be licensees and there would be no tenancy.

Up to €14,000 rent receivable tax free under the rent-a-room scheme.

After two years the clock is reset and you can lease it normally at market rates.
 
Sarenco said:
What you are describing is a joint tenancy.
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How do people who are renting out properties by the room make it work? There's a guy I know who is doing quite well renovating houses then renting out by the room. Suppose you would have to be the first person doing it, i.e. setting the rent on the place for the first time. Then just add each person renting a room as a tenant on the rtb site. Is it simple as that?

I let out a couple of properties, I don't want to get into renting by the room. It's more profitable, yeah, but I'd rather an easy life and just stick in a family who will stay there for years. Nevertheless, I'm curious to know.
 
Technically you are creating a new joint tenancy each time you add a new tenant to the arrangement.

Each joint tenant has to be in a position to access their room, shared areas, etc. They are not simply renting a room.
 
Sarenco said:
Technically you are creating a new joint tenancy each time you add a new tenant to the arrangement.

Each joint tenant has to be in a position to access their room, shared areas, etc. They are not simply renting a room.
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Ok, but in reality, one could work it like that. Have several tenancies on the RTB account attributed to the address and charge each individual by the room. I don't think you would be breaking any rules there, would you?
 
You can rent each room separately (though I think you are making a rod for your own back).

However the lease can only be registered to one address & the total rent will be set via RPZ rules.
 
Sounds like you have a 3 bed apartment. Renting out the rooms to 3 people who are strangers to each other will more than likely come with its own headaches. You will be dealing with 3 individuals for rent, notice etc. They have to share communal spaces so you'll inevitable get entangled in petty rows such as
- person A never cleans the bathroom
-person B has their bf/gf over all the time
- person C leaves the light on in the hall at night time
I had 2 others in my house back many years ago when I just bought and could do with the financial help, I was living in the house too so had a level of control etc. It worked well most of the time but after a few years I could do without the hassle etc.
 
DannyBoyD said:
You can rent each room separately (though I think you are making a rod for your own back).

However the lease can only be registered to one address & the total rent will be set via RPZ rules.
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just reading through older threads and came across this one.

Providing each room was self-contained, ie. en-suite + cooking + ff + washer dryer, (some renovation needed obvs) could a landlord then register more than one tenancy at a particular address, eg. Main Street #1A, 1B, 1C etc. with separate rent terms?
Dont think theres any issue to add an en-suite and i've seen lots of washer dryers in bathrooms. Rooms can have fridges and cooking equipment.

Sarenco said:
Technically you are creating a new joint tenancy each time you add a new tenant to the arrangement.

Each joint tenant has to be in a position to access their room, shared areas, etc. They are not simply renting a room.
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How is it creating a joint tenancy?
If a single property with a common entrance has 3 or 4 self contained rooms or units within, they could be separate tenants and not joint/multiple tenants (they would need to be named on a single lease agreement for the entire property).
 
DannyBoyD said:
Only if they are properly recognised (e.g. planning permission / pre-63) as separate dwellings.
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Thanks. So if a LL did an internal refurb to the layout of say a large house and put en-suites, washer dryer, ff, cooking equip, and door locks and adjusted the ground level to incorporate sleeping and en-suite, he couldn't give eg. 4 people separate tenancy agreements unless he has PP, building regs and presumably fire certs and separate insurance cover.

Is that only where the separate units in a building could be sold individually? What if its remains a single house with one entrance and just has the internal layout altered?
 
bipped said:
What if its remains a single house with one entrance and just has the internal layout altered
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I don't believe you can do this and remain compliant with planning / fire regs / housing regs & anything else you can think of.

We don't have HMO regs here.
 
If the property owner lives in the house, the other occupants are licensees, not joint tenants.

You would never get planning to split out a house as you suggest.
 
If the property owner occupies the home as their principal private residence and chooses to share that home with one or more people RTB does not have jurisdiction.

Attempting to carve out self contained dwellings will be in contravention of planning, fire regs & likely lots of other regs.
 
While it can be possible to get planning to split a home into multiple stand-alone units, each unit would need to satisfy the building regs and minimum standards for rental accommodation. The 'Bringing Back Homes' guide contains some useful information and pointers as to what is possible and required.

bipped said:
Is that only where the separate units in a building could be sold individually? What if its remains a single house with one entrance and just has the internal layout altered?
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Altering the internal layout to add en-suites and the like is exempted development. In a typical home here, it would be difficult to squeeze in separate laundry and cooking facilities as required for rental accommodation. If the goal is just to avoid RTB oversight, then as per the other thread, let each room individually under license.
 
Leo said:
If the goal is just to avoid RTB oversight, then as per the other thread, let each room individually under license.
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Be wary about this approach; I don't believe we can declare that this arrangement will stand up to challenge.
 
DannyBoyD said:
Be wary about this approach; I don't believe we can declare that this arrangement will stand up to challenge.
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It works so long as the each licensee signs a separate agreement that is clear and unambiguous, and the landlord maintains continuous access, perhaps reinforcing that with a regular visit to check in. In practice it's not something most landlords want to go messing with as they need to find all the people separately, look for replacements when any of them leave, and deal with any inter-personal issues that arise from time to time.

But there is a risk that if the landlord drops the ball even a little the RTB could decide it's a regular leasehold agreement and not a license situation.
 
There is more than one or two people building their portfolio with some element of transparency on social media - buying and renovating 3or 4 beds into 7 or 8 beds. The bedrooms are bedrooms, usually ensuites from what I have seen but certainly not equipped with cookers etc.

There is no way these people are rewriting tenancy agreements every time someone moves in or out, given they have multiple units.

So are they doing this under some sort of license - not really heard about this before and interested to hear more, why wouldn't one do this?
 
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