Rent a room (self contained unit)

eisfspike

Registered User
Messages
12
Hi All

Quick question In relation to renting a self contained unit within a house. I have been told albeit i think incorrectly that in order to claim up to 14k tax free that the person renting the self contained unit must use your front door and gas/electricity meter. From my research on the revenue website this seems nonsense but just want to check peoples experiences with this. The selfcontained unit is attached to the house with an access door into the main residance, the tenant also has there own door and electricity meter.

Anyone ever hear of these additional requirements?

Thanks
 

Leo

Moderator
Messages
9,955
In 99%+ of cases, planning conditions state it is prohibited to have anyone other than a direct family member stay in, or charge rent on any such self-contained unit. What does the planning on your property state?

Self-contained units must meet specified minimum standards for rental accommodation.

Note, per Section 4 of the Residential Tenancies Act, the renting of a self-contained unit in your home comes under the remit of the RTB, and any such tenancies must be registered and abide by the legislation.
 

eisfspike

Registered User
Messages
12
You are correct re meeting of standards etc however there is a clause section 25 where you can opt out of the RTB requirements. My understanding that if you have a self contained unit in a house (with internal door access to the main house) this is esentially a room in your house as opposed to a complete self contained unt which is just attached to your house house. Revenue guidance do not mention anything (that i can see) about the self contained unit having to share electricity etc with the homeowner in order the receive the 14k a year tax free.

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.

The residential tenancies legislation provides for security of tenure for tenants. These provisions are in Part 4 of the Residential Tenancies Act 2004. However, if the self-contained flat or apartment was originally part of the main house, you can choose to opt out of these provisions. This option is available under Section 25 of the Act. You must give the tenant notice in writing, before the start of the tenancy, if you wish to take this option.
 

Gordon Gekko

Frequent Poster
Messages
3,563
The €14k exemption still applies to an own door granny-flat type scenario as described by the OP if it’s all part of the one structure (i.e. main house plus granny-flat).
 

eisfspike

Registered User
Messages
12
Yes it is all one structure but the granny flat has its own meter. I was told that unless the granny flat uses the same electricity meter as the main house i.e. it cant be classed as rent a room. I belive it is complete nonsense to be honest but just wondering if anyone has ever heard of this.
 

galway_blow_in

Frequent Poster
Messages
1,358
Hi All

Quick question In relation to renting a self contained unit within a house. I have been told albeit i think incorrectly that in order to claim up to 14k tax free that the person renting the self contained unit must use your front door and gas/electricity meter. From my research on the revenue website this seems nonsense but just want to check peoples experiences with this. The selfcontained unit is attached to the house with an access door into the main residance, the tenant also has there own door and electricity meter.

Anyone ever hear of these additional requirements?

Thanks
If this is correct, my brother in law and his wife are in trouble with the revenue Commissioner, they have a couple living in their basement, the couple do not use the front door of the main part of the house
 

RedOnion

Frequent Poster
Messages
3,132
Once it is part of, or attached to, your house it should meet the criteria for rent a room relief.

The PRTB criteria is different, and people confuse the 2.
 

galway_blow_in

Frequent Poster
Messages
1,358
Once it is part of, or attached to, your house it should meet the criteria for rent a room relief.

The PRTB criteria is different, and people confuse the 2.
Forgive my ignorance but are you saying the tax free income ( up to 13 k) stands but those living in the basement do attain normal tenancy rights as with a conventional rental property situation?
 

RedOnion

Frequent Poster
Messages
3,132
Forgive my ignorance but are you saying the tax free income ( up to 13 k) stands but those living in the basement do attain normal tenancy rights as with a conventional rental property situation?
Exactly.
You can elect that it's not subject to PRTB / tenancy rights, but you must agree this in writing with the tenant in advance.
 

elacsaplau

Frequent Poster
Messages
558
What happens if you rent a room to students during the academic year (and receive less than €14k for this) and also rent the same room during the summer as an Airbnb. Specifically, if the combined income exceeds €14k does the rent-a-room tax-free exemption still apply?

Does pre '63 matter in any of this and if so, how precisely?
 

Bronte

Frequent Poster
Messages
13,292
In 99%+ of cases, planning conditions state it is prohibited to have anyone other than a direct family member stay in, or charge rent on any such self-contained unit. What does the planning on your property state?

Self-contained units must meet specified minimum standards for rental accommodation.

Note, per Section 4 of the Residential Tenancies Act, the renting of a self-contained unit in your home comes under the remit of the RTB, and any such tenancies must be registered and abide by the legislation.
The OP did not ask about planning, there isn’t a chance anyone will do anything about his self contained unit. Once it’s used for more than 7 years nobody can force him to do anything in any case.

OP Geko is correct. Once the unit is part of the main building, a granny flat, converted garage, basement, attic, it is tax exempt. If it were a garden shed converted it would not be exempt as that’s not attached. Separate electricity has no bearing on anything.
 

Bronte

Frequent Poster
Messages
13,292
What happens if you rent a room to students during the academic year (and receive less than €14k for this) and also rent the same room during the summer as an Airbnb. Specifically, if the combined income exceeds €14k does the rent-a-room tax-free exemption still apply?

Does pre '63 matter in any of this and if so, how precisely?
Pre 63 is about planning. As in if your building has modifications done that would need planning, if it’s pre 63 then you don’t need planning permission.
 

eisfspike

Registered User
Messages
12
What happens if you rent a room to students during the academic year (and receive less than €14k for this) and also rent the same room during the summer as an Airbnb. Specifically, if the combined income exceeds €14k does the rent-a-room tax-free exemption still apply?

Does pre '63 matter in any of this and if so, how precisely?
I would have thought that once you go over the €14k (regardless of source Air BnB, students etc.) the whole amount becomes taxable.
 

Nutso

Frequent Poster
Messages
495
From airbnb:

Rent-a-Room Relief
Under Section 216A of the Tax Consolidation Act 1997, income that hosts earn by renting a room for residential purposes in an individual’s sole or main residence that does not exceed €14,000 in a year may be subject to a relief from income tax and other fiscal obligations as long as certain conditions are satisfied.
In February 2015, the Revenue issued their interpretation of Section 216A in a guidance note. They said that short-term rental income from occasional visitors does not qualify for the relief because the accommodation is being used as a guest accommodation rather than a residential purpose. This view is now confirmed, subject to some exceptions, by a change that was made to Section 216A made by the Finance Act 2018.

So it seems that the letting of the room for the purposes of Airbnb would not come under the rent-a-room relief in any case.
 

torblednam

Frequent Poster
Messages
388
What happens if you rent a room to students during the academic year (and receive less than €14k for this) and also rent the same room during the summer as an Airbnb. Specifically, if the combined income exceeds €14k does the rent-a-room tax-free exemption still apply?
The Airbnb income is from a different activity to the rent a room income. The rent a room income will be exempt, the Airbnb income will not, and the normal rules for calculating the taxable profit apply.
 
Top