Rent-a-Room & National Student Accommodation Strategy 2026–2035

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Eblanoid

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The National Student Accommodation Strategy 2026–2035 was announced today and Rent-a-Room was mentioned several times, though without any mention of an increase in the tax-exempt amount.
  • "Pillar 1 - [...] focuses on activating supply for the emerging demand of 42,000 student beds, including [...] Rent‑a‑Room beds over a ten-year period to meet the projected levels of demand."
  • "Pillar 2 - [...] aims to provide targeted financial support directly to students regardless of whether they are Living at Home, in Rent‑a‑Room accommodation [...]."
Hard to see how more people will be encouraged to offer rooms in their homes unless the Government increases the tax-exempt amount, which has been €14,000 since Jan 2017. It'd be €17746.96 now if it had been index-linked to CPI inflation. I'd have thought anyone who's willing to do it at the current limit already is?
 
Eblanoid said:
Hard to see how more people will be encouraged to offer rooms in their homes unless the Government increases the tax-exempt amount, which has been €14,000 since Jan 2017.
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Is that 14000 total? What if someone rents out two rooms in their home to students? It seems that there wouldn't be much incentive to take in a second if the total would go over this limit.
 
patfert1 said:
(As a side note, I get less than that in rental income for a 3-bed house and the income is taxable. I'd be much better off evicting the family, moving one of my kids into the house, and renting out a room to a student. It's nuts...)
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And the students wouldn't have all the rights the tenant has.
 
Is that 14000 total? What if someone rents out two rooms in their home to students? It seems that there wouldn't be much incentive to take in a second if the total would go over this limit.
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The limit is on the tax-free income (€14,000), not the number of rooms. So you can rent as many rooms as you like, but the income is only tax-free up to €14k. A cent over that and the whole lot is taxable.

More info:
 
Eblanoid said:
A cent over that and the whole lot is taxable.
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Maybe they could drop that part of the rule.

Though, it likely forces many rooms to be rented at exactly 14k, so essentially more rent controls.

It is also the total payment of any kind from the licensee. If you charge 14k for the room and also charge for electricity, then you lose the tax free relief.
 
Following up on my original message, I found out today that the index-linking of the RaR tax-exempt income was actually brought up in the Dáíl last September.

I wonder if the expansion of RaR to cover garden accommodation that's separated from the main dwelling will prompt a review of the exemption limit? Also, would the limit (currently €14,000) apply to all accommodation rooms on the property (including garden) or would it be €14,000 for rooms in the main dwelling and another €14,000 limit for rooms in the garden accommodation?
 
LarryScott said:
It is also the total payment of any kind from the licensee. If you charge 14k for the room and also charge for electricity, then you lose the tax free relief.
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Imagine what the heating and electricity bill is going to be for a self contained cabin that someone is living in full time.
 
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