Convert garage for academic year lettings only?

[Malxon]

Hi there.

Our main question is: Can we convert our garage into self-contained accommodation to rent out for the academic year only?

We’re about to renovate our bog-standard semi-detached house with an attached garage. The garage, if extended to the rear, would make a very attractive living space. We think we could fund it by renting to students through the rent-a-room scheme. That said, we’d like to be able to make use of it for visitors during the summer months.

From what I’ve read so far, an accommodation like this might be subject to the requirements of the RTB. We’ve no problem meeting and ideally exceeding standards and obligations for our tenant. However, from what I read, it sounds like someone who is renting for six months can choose to stay indefinitely, and this rule trumps any agreed letting term. Do I understand this correctly?

Having a permanent tenant with no summer access to the unit ourselves makes the prospect much less attractive to us. We’re wondering whether there’s a way to create the unit in such a way that we can make it available through the rent-a-room scheme without it coming under the remit of the RTB (i.e. tenant can stay indefinitely after six months).

• We’ll likely build an internal door between house and the accommodation. Does this affect the status of the unit?
• Would common access to a utility room have any bearing on its status?
• What kind of person might have the expertise in the relevant areas (tax, planning, building regs, RTB) to guide us?

Thanks for any advice.

 

[Marsupial]

Start here: https://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html

 

[Thirsty]

RTB have no jurisdiction over rent-a-room.

See Revenue.ie guidelines also.

From what you have described, I think you will be covered under rent-a-room.

 

[Bilbo1]

From the link provided:
Self-contained units
If you rent out a self-contained unit in your home, such as a converted garage attached to your home or a basement flat, the rights and obligations under residential tenancies legislation apply to you. For example, you are obliged to register the tenancy with the Residential Tenancies Board (RTB), provide a rent book to the tenant and ensure that the accommodation provided meets minimum physical standards.

 

[Thirsty]

Not according to Revenue (and in my book they are the decider)

"Self-contained unit​

The rented room or rooms can be a self-contained unit within the house, such as a basement flat or a converted garage.

If this unit is not attached to the property it cannot qualify for the relief."

 

[niceoneted]

You would need to have a door between the unit and your house in order for it to be considered rent a room. if it is separate you will be subject to RTB registration and tax. The door could be locked during the academic year and unlocked for the visitors in the summer.

 

[Malxon]

Thanks for all the replies so far.

From what I've already read, it is possible to use rent-a-room but at the same time be subject to RTB. I think that is likely to be the situation if we build accommodation which adjoins our house, but which is entirely independent. I think it may hang on what exactly "self-contained" means, which is the term used in the documentation I've read.

Our plan is for it to have a kitchen and bathroom of its own, but there would also be an internal door between it and the house. That would be locked when the unit was in use as accommodation.

 

[Leo]

I think that is likely to be the situation if we build accommodation which adjoins our house, but which is entirely independent. I think it may hang on what exactly "self-contained" means, which is the term used in the documentation I've read.

Self-contained will also be a lot more difficult to get planning permission for. In most cases, a clause is added that forbids letting the unit.

 

[Thirsty]

possible to use rent-a-room but at the same time be subject to RTB

This would not be my reading.

If you rent a room in your home, the lodger has the legal status of a guest and can be asked to leave at any time. They do not have the legal rights of tenure which are managed by the RTB.

 

[Malxon]

See this page, which is one of the sources of my information:

If you are renting a self-contained flat or apartment in your landlord’s home, your tenancy is covered by residential tenancies legislation and your landlord must register it with the Residential Tenancies Board. However, if you are renting a room that is part of your landlord's home, your tenancy is not covered by this legislation.

Your landlord may be entitled to Rent-a-room relief, whether you are renting a room or a self-contained dwelling.

Btw, I rang the RTB. They pointed me to the definition of dwelling in the Residential Tenancy Act 2004, part 4. Again, it doesn't really define "self-contained".

Thanks for the heads up about potential planning issues. To keep the discussion straightforward, let's not get into that here.

 

[Thirsty]

Pretty clear in my opinion.

"However, if you are renting a room that is part of your landlord's home, your tenancy is not covered by this legislation."

A converted garage attached to your house is a part of your home.

I don't understand why you would want to get into any quagmire of planning, RTB, tax etc

 

[OMG_OMG]

I spoke to RTB and revenue on this about a year and a half ago.
If its attached to your home/part of your home, it does not need a door between it and the main part of your home to qualify for rent a room. Also it does not need to be registered with RTB.
But call both revenue and RTB yourself to make sure.
What will you do if the throwing darts at a dartboard legislation changes next year or the year after. You will have sunk money into something and then the goal posts will be moved on you again.

 

[cremeegg]

It cannot be taken for granted that Revenue and RTB rules are coherent

I spoke to RTB and revenue on this about a year and a half ago.

Speaking to Revenue or RTB may be of some general use, but unless they provide written advice, which they will not, you cannot rely on anything they say over the phone.

If its attached to your home/part of your home, it does not need a door between it and the main part of your home to qualify for rent a room.

This is my understanding also of the Revenue rules. Rent-a-room is a revenue expression and has nothing to do with RTB.

In my understanding the OPs suggestion would qualify as tax exempt under the rent-a-room.

However as the student would be occupying self contained accommodation with their own bathroom and kitchen it would be a tenancy subject to the RTB.

In practice unlock the door and declare the kitchen and bathroom shared, offer the student a licence.

 

[OMG_OMG]

Before I called them myself, I had asked other people I knew who had done this. They all said that they had been doing it for years previously and some of them had been in contact with revenue and RTB to make sure it was ok. I called myself and I recorded the call just in case.
I didnt go ahead with it myself in the end, but if the OP calls them and asks for their decision in writing (or if they wont, just record the call) I think they can assume that it is safer to assume that advice is more correct he advice of us randomers on message boards.
The main thing is check it yourself and get it straight from the horses mouth. We all have opinions and they are just that.
Also look us the determinations at the RTB and see if this ever came up before. If it has then you can just skip to the end for your answer
If it hasnt then its probably not an issue.

 

[Malxon]

Thanks for all the information everyone. Very helpful.

I'll contact the RTB again, and try to get more clarity around what kind of shared space would exempt us from their remit. If I make progress, I'll report back.

 

[OMG_OMG]

Thanks for all the information everyone. Very helpful.

I'll contact the RTB again, and try to get more clarity around what kind of shared space would exempt us from their remit. If I make progress, I'll report back.

Call revenue too. It will also be eligible for the rent a room scheme, but dont go over the limits.