We are planning to move out of the city during the summer. My sister who also lives in Dublin was told she would be evicted by her landlord as the house is up for sale. Given the shortage of available properties and the cost of any reasonable property she has asked to rent my home. While I have no issue with this and she would not be able to afford the market rate.
This is my issue. I would be happy to give it to her for less than the going rate but she is about to start building a house and will only need my place for 2 years she maintains. The house is in a rent pressure zone and if for example I only charge her €1,000 I could only increase the next lodgers rent to €1,080 when market rent would be as much as twice that. Is there any exemption for a preferential rate such as this or would I be snookered once she moved out?
A second question is if I have lived in this house as my PPR for the majority of this year could I claim the rent tax free under the rent a room scheme this year to save on tax?
This is my issue. I would be happy to give it to her for less than the going rate but she is about to start building a house and will only need my place for 2 years she maintains. The house is in a rent pressure zone and if for example I only charge her €1,000 I could only increase the next lodgers rent to €1,080 when market rent would be as much as twice that. Is there any exemption for a preferential rate such as this or would I be snookered once she moved out?
A second question is if I have lived in this house as my PPR for the majority of this year could I claim the rent tax free under the rent a room scheme this year to save on tax?