T
tenchi-fan
Guest
I am going abroad to work for a year before the end of this year. I would only be renting an apartment abroad.
I want to rent my 3 bedroom house out to keep the mortgage covered and I'd make up any shortfall. I only purchased the house last year and the mortgage is €117k over 40 years (it's pretty modest!). So I would set rent at around €390 per month + ESB and a deposit of around €500.
I have family who could collect rent while the neighbours either side of me are pretty friendly and would tell me if the place was being used for parties or if it was sublet to 20 chinese students.
I was thinking the rent a room scheme would be ideal. I could rent out "a" room and of course the occupier would have access to the rest of the house including 2 bedrooms. The box room would be retained by me to store my stuff. Technically I'd have occupied the house during both 2010 and 2011 - just not the entire year.
Basically, this will cut out a lot of hassle: losing trs, possibly paying cgt down the line, tenancy rights incl minimum standards, rent allowance (not permitted as room costs more than €66 per week), income tax, etc. And the person I am renting to would save on the market rate of rental houses and wouldn't have to commit to a lease (which wouldn't be worth the paper it was printed on anyway as I would be abroad and not able to follow it up). Stamp duty doesn't come into it given the low cost price of the house.
I know this is against the spirit of the rent a room scheme but I want to do things by the book, just with as little paperwork as possible!
Would this arrangement work? Or would someone in "the system" make my life a misery?
I want to rent my 3 bedroom house out to keep the mortgage covered and I'd make up any shortfall. I only purchased the house last year and the mortgage is €117k over 40 years (it's pretty modest!). So I would set rent at around €390 per month + ESB and a deposit of around €500.
I have family who could collect rent while the neighbours either side of me are pretty friendly and would tell me if the place was being used for parties or if it was sublet to 20 chinese students.
I was thinking the rent a room scheme would be ideal. I could rent out "a" room and of course the occupier would have access to the rest of the house including 2 bedrooms. The box room would be retained by me to store my stuff. Technically I'd have occupied the house during both 2010 and 2011 - just not the entire year.
Basically, this will cut out a lot of hassle: losing trs, possibly paying cgt down the line, tenancy rights incl minimum standards, rent allowance (not permitted as room costs more than €66 per week), income tax, etc. And the person I am renting to would save on the market rate of rental houses and wouldn't have to commit to a lease (which wouldn't be worth the paper it was printed on anyway as I would be abroad and not able to follow it up). Stamp duty doesn't come into it given the low cost price of the house.
I know this is against the spirit of the rent a room scheme but I want to do things by the book, just with as little paperwork as possible!
Would this arrangement work? Or would someone in "the system" make my life a misery?