Redoranges
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We have had a rental property for many years. We have been RTB and tax compliant always. The previous tenants have given notice as they are purchasing their own house. We are planning to move our adult son who is 20 years and a full time student into the house as the tenant. The house is a lot closer to his university and he is still living at home as he can't find rental accomodation near his college. Can we register him as the tenant with the RTB and then, can he sublet the other rooms to other students? He will then pay us the same rent that the previous tenants paid, which we will declare for tax. Because the house is in a Rent pressure Zone and we cannot increase the tenants rent, renting out the other 3 rooms in the house - it is a 4 bed house - will mean his rental income from his subletting, will generate an income for him after he pays us the rent. Maybe 8,000 a year. He currently only has a small income from summer work. If he pays tax on the rental income, are we both parents and adult son, tax compliant? I.e is this arrangement legal?