RTB registration, rent level and mortgage interest relief- owner's son living with three rent paying friends

[AOBIRE]

I own a house in Dublin where my son lives rent-free with three friends, all students. Each friend pays €1,300/month for the nine months of the academic year. I don’t live in the property but have access to it.

I’m trying to clarify three things:

1. Licence or tenancy / RTB registration
As my son lives in the house and his friends are renting rooms while sharing the common areas with him, can they be treated as licensees rather than tenants? If so, does the arrangement need to be registered with the RTB, given that I (the owner) don’t live there?

2. What rent would be registered?
If RTB registration is required, how should the rent be recorded? The three students pay a total of €3,900/month, while my son occupies the fourth bedroom rent-free. Comparable whole houses in the area rent for around €11,000/month.

My concern is that €3,900 does not reflect the rental value of the whole property. If I register €3,900 now, would that become the base rent for the property for the purposes of future permitted rent increases, even if my son moves out and I later rent the entire house on the open market?

3. Mortgage interest
If the arrangement is legitimately exempt from RTB registration, can I still deduct the allowable mortgage interest against the rental income, or is RTB registration required in order to claim the interest?

Finally, I’d be very happy to pay for an hour or so of professional advice on this. If anyone can recommend a pragmatic Dublin solicitor or tax adviser who understands small landlords, licence arrangements, RTB rules and the related tax issues, I’d appreciate a recommendation.

Many thanks.

 

[DannyBoyD]

Is the property your sons PPR?
(Best answer is yes)

Are the bills in his name?
(Again, best answer is yes)

Can you keep the rent at €14k per year?**
(Even if one room is empty & again best answer will be yes)

**or what ever the Rent-a-room allowance is after 6th Oct.

If you find a legal professional meeting that description & willing to take on such a client, buy several lotto tickets, cos your luck is clearly in.

 

[bipped]

RTB registration

RTA.. Application of Act.

S.3 (2) Subject to section 4(2), this Act does not apply to any of the following dwellings—
….
(h) a dwelling within which the spouse F4[, civil partner within the meaning of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010], parent or child of the landlord resides and no lease or tenancy agreement in writing has been entered into by any person resident in the dwelling,


If the property is rented to close family members (spouse, parent, or child) without a formal written agreement it doesn’t need to be registered so doesn’t come under RTB remit.

Wouldn’t the three housemates be your sons licensees if you don’t live in the house? Don’t know exactly how it works if the housemates pay the rent over to you rather than to your son but some of the very knowledgable posters on AAM will know. If they pay him, think he needs to make a regular tax return for the rental income unless he does rent-a-room which has its own rules. There’s also the ‘taxable gift’ to consider if your son is living rent free.