Converting attic to rent out. Good or bad idea?

Q

qwerty5

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I just wanted to pick the brains of the users here to get any positive or negative opinions of this idea.

I'm thinking of converting our attic (bedroom and ensuite) and renting it out from Sunday evening -> Friday mornings. I live reasonably close to Dublin with good public transport so this would suit a professional or student.
I haven't priced it yet but I'm assuming a maximum of €20K and I'm also assuming I can rent it for €400pm including bills. We'd only rent to a single person.
If that was the case it'd have paid for itself in 4 and a bit years.
This extra money would be put against the mortgage.

Pros that I can see include.
Extra income after 4 years. That'd be like getting a €9K payrise before tax.
Extra room in the house, increasing the houses value.

Cons are
Loss of privacy.
If it's not rented out then it's not extra income.
I could get a nutjob. But it's a licensee agreement so I'd vet them and set up a proper contract.
We have a young daughter so there's her security to consider. But that's where the vetting comes in.
Increase in utility bills.
If the house value increased as a result of the work it'd mean an increase of LPT.

Are there any more pros and cons that I should be thinking about. Is it a good idea or something that you wouldn't touch with a barge poll. All opinions welcome.
 
You have forgotten about Planning permission and insurance in the above and revenue (tax) might also have to be considered.
 
If you found renting wasn't suiting you, could you repay the loan without the rent?

If the answer to that is yes, then I'd say give it a roll.

Some things to consider - make sure your wi-fi signal is still strong enough at the top of the house and put in a booster if not; you'll need to include a study desk and you might like to think of putting in a small TV.

@noproblem - there's no tax to be paid, it's covered under 'rent-a-room' scheme.

PP not required, assuming you are going for velux windows at the back and you are not looking to have it classified as 'habitable space'.
 
Thirsty said:
PP not required, assuming you are going for velux windows at the back and you are not looking to have it classified as 'habitable space'.
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That would be illegal, it's either habitable or it's not. If renting it as accommodation it needs to be fully compliant with planning, building, and in particular fire regs.

You would also need to look into any additional restrictions your household insurance policy stipulate when part or all the property is let.
 
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Thirsty said:
If you found renting wasn't suiting you, could you repay the loan without the rent?

If the answer to that is yes, then I'd say give it a roll.

Some things to consider - make sure your wi-fi signal is still strong enough at the top of the house and put in a booster if not; you'll need to include a study desk and you might like to think of putting in a small TV.

@noproblem - there's no tax to be paid, it's covered under 'rent-a-room' scheme.

PP not required, assuming you are going for velux windows at the back and you are not looking to have it classified as 'habitable space'.
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Wow, i'm amazed you say there's no PP required, thought the roof structure might have to be changed or at least strengthened to support an extra room and all that entails. As Leo says, the insurance needs to be checked and amended accordingly to include a paid tenant. As far as I know you may still need to inform revenue that you're availing of the rent a room scheme even though there's a good allowance before you have any tax to pay (at the moment). I forgot to mention the intrusion on your privacy and person being in your house even though you or your family may not be there, plus, you never know who anybody is anymore.
 
As no problem says you can never be sure who you'll get, vetting will only achieve a limited amount.

20k budget may be a bit optimistic, depends on how much structural work needed. Complying with fire and building regs can add a lot of cost but well worth it.

If renting to a student they'll only be there 8-9 months of the year. Would it be worth the hassle of trying to get someone else for the summer.

Would you provide meals for a student? Would you be happy enough to share your kitchen with someone else?
 
You can spend 20k and rent your room to earn €1100 tax free.

I buy an apartment for €200000, pay stamp duty, property tax etc etc, and on 11k income, I would still have to hand over half of that income..
 
Páid said:
Since 2017 it's €14,000 relief annually
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And this is where the system is completely out of kilter. While its a great idea and windfall to rent out your room with little or no monetary investment, yet when you invest money into the system/agents/surveyors where people earn a living and pay their taxes, and yet on the same amount of revenue earned, you pay dearly.
 
"That would be illegal, it's either habitable or it's not. "

It is not illegal to convert your attic; planning permission is not required.

You cannot however refer to it as habitable space; you will see plenty of estate agents referring to a 'converted attic' but do not count it as a bedroom, never mind the double bed, built in wardrobe and en-suite in the photos.

Are you suggesting that anyone using their converted attic as a bedroom should be prosecuted?
 
"If renting it as accommodation it needs to be fully compliant with planning, building, and in particular fire regs."

Can you provide reference specifically to rent-a-room/licensee in private house?
 
It's rent-a-room, not rent a wardrobe! You can't class a non-habitable space as a room.

The building regs cover all the requirements in detail. TG-B covers the additional requirements for fire safety where a floor is above 4.5m above ground as would be the case for attic conversions in two-storey houses.
 
You can't class a non-habitable space as a room.
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I believe I've already said that; and you'll find that many attic conversions (my own included) do not meet the height requirement and so can't be called a bedroom; notwithstanding the fact that all fire regs / certifications have been signed off for it. So whilst it can't be called a bedroom, there are plenty of homes where it is used for exactly that.

I don't believe there are specific standards/regs which are applied for a licensee in a private house; unless you can point me to them?
 
thought the roof structure might have to be changed or at least strengthened to support an extra room
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Just spotted this in one of the earlier posts. Yes this absolutely needs to be done. Make sure you get RSJs and have all certified. You still don't need planning permission.
 
I'd imagine renting out a room in a 3/4 bedroom house, then advising the renter that their room is in the attic which has been added on without planning will go down real good with your insurance co if something goes wrong?
 
Thirsty said:
I believe I've already said that; and you'll find that many attic conversions (my own included) do not meet the height requirement and so can't be called a bedroom; notwithstanding the fact that all fire regs / certifications have been signed off for it.
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If the conversion does not meet the regulated minimum height how can ALL fire regs/ certifications be signed off for it?
 
Thread has gone a bit off the rails. Can we assume that I'll convert the attic legally in accordance with planning regulations.
 
It’s worth remembering that a “rent-a-roomer” is analagous to a paying guest in your home; he/she can be in a tiny box room with only a bed in it and there are no regulations being broken.

Putting a rent-a-roomer in your attic is no different to putting one of your kids up there (or your wife!).
 
"convert the attic legally in accordance with planning regulations"

Thats the point I'm making, there's no planning permission required. You should however make sure that the structural requirements are met.

If anyone you ask to quote doesn't include RSJs and an architects cert, drop them.

@Gordon Gekko - presumably husbands can also use the converted attic?

@noproblem - again, if you use velux windows at the back and aren't concerned about call it 'habitable space', you don't need planning to convert your attic.

Your insurance policy covers the building and your contents. It does not extend to the renters belongings.

@llgon - find me the bit in the fire regs where it talks about minimum ceiling heights.
 
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