Owner Occupier - Want To Rent A Room

1

1867ie

Guest
Hi,

First time poster, have a taken a quick browse but cant find this question or answer so here goes!

I am a (recent) owner occupier and have two spare rooms. I want to let one out to my best friend (ok, irrelevant) so what are the rules and regualations?

Am I liable for tax, do I need to register him with the PRTB, is there a max I can earn in rent before I hit another tax ban etc etc

All input and constructive criticism welcome!
 
It's all explained here...
http://www.citizensinformation.ie/en/housing/owning_a_home/home_owners/rent_a_room_scheme.html

In summary you don't need to register with the PRTB and you can earn up to 10,000 PA without any tax liability, so go for it.

There was some speculation that the govt. would reduce this benefit in the last budget but that didn't happen. Though that could happen next time round, who knows.
I rent out my spare room and have found it a very handy source of income. Alot of people recommend drawing up a rental agreement, I have never done this, but it might be worth considering.
 
In order to ensure your best friend stays your best friend, I would recommend a clear agreement on what monies are due, when & in what way. Who pays the ulities bills? Is shopping separate or combined? Can you have friends stay over & for how long? etc

Have you ever lived with them before? It's amazing how little things can bug you - often more so with close friends than with strangers.

I've never really done it (other than summer rentals) but I've heard some stories:
- a person looking for a reduction on the shared kitty as they didn't use ketchup
- boyfriends who stay over night & forget to leave for weeks

So be clear & make sure you both know what is acceptable upfront.
 
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