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?
I would be appreciated if anyone can give me some advise. Thank you!
- 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?
- 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.
- 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?
- 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?
- 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!