# 2 Questions on Rent a Room Scheme



## Khublei (17 Aug 2011)

Hello everyone,

I am about to start renting a room. I've read a lot on their forum but still have two questions. 

1. In your opinion, would it be better to split bills or include them in the rent? I'm just looking for what others have done really. I know there's no right or wrong answer. I'm worried if I include them that they'll leave the heat on if I'm away all weekend or something. 

2. I'm currently living in a house that my grandfather built, belongs to my parents. It will some day (possibly) belong to me, but for now I'm renting from my parents. I've read that I will still qualify, it just becomes a sort of sub-let situation. Do I have to do anything differently or justs till submit a tax return at the end? The deal with my parents is pretty casual so would I need a written lease and proof of having paid them for the tax man? 

Thanks!


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## serotoninsid (17 Aug 2011)

Khublei said:


> Hello everyone,
> 
> I am about to start renting a room. I've read a lot on their forum but still have two questions.
> 
> 1. In your opinion, would it be better to split bills or include them in the rent?....I'm worried if I include them that they'll leave the heat on if I'm away all weekend or something.


Most split them.  If you advertise with bills included it looks less attractive (even though the reality is they have to pay them one way or another).  I would have the same concern as you - i.e. they will leave heating on , lights on, etc etc They'll probably do this anyway to an extent -  but nothing in comparison if you include it in the rent.



Khublei said:


> 2. I'm currently living in a house that my grandfather built, belongs to my parents. It will some day (possibly) belong to me, but for now I'm renting from my parents. I've read that I will still qualify, it just becomes a sort of sub-let situation. Do I have to do anything differently or justs till submit a tax return at the end?


No - nothing different except stay below the €10k/year ceiling and make sure that whoever is insuring the house is aware that rooms are being rented.


Khublei said:


> The deal with my parents is pretty casual so would I need a written lease and proof of having paid them for the tax man


That's between you and them really.  Don't think you have to prove anything in this regard to the taxman although your parents obviously have responsibilities in this regard.


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## carallen2 (17 Aug 2011)

I'm not sure about Q 2 but I've rented a room for the past few years + include costs such as bins, SKY & b/band, contribution to the TV licence in the rent. The gas & electricity are shared equally. I find it easier to collect money for bills where a bill is actually received by post- Sky / B.band and the bins have no physical bill arriving to the house each month.


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## Khublei (18 Aug 2011)

Thanks to you both. Including those bills makes sense, Carallen. But with things like bins for example - I hope they're as into recycling if they not footing the bin bill. 

I'm still a little anxious about the tax situation. I don't want to get my parents in trouble first and foremost. The rent I will be giving my parents will be less than the two rent a roomers will be (potentially giving). I can morally justify this (my parents didn't rent it out because it wasn't in good enough condition - I got new windows, doors, central heating, installed and pay for bb/Sky etc.). So I hope this will be ok. I suppose if my parents and my tax is done separately, which it will, then the difference should go unnoticed.


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## mandelbrot (18 Aug 2011)

Khublei said:


> Thanks to you both. Including those bills makes sense, Carallen. But with things like bins for example - I hope they're as into recycling if they not footing the bin bill.
> 
> I'm still a little anxious about the tax situation. I don't want to get my parents in trouble first and foremost. The rent I will be giving my parents will be less than the two rent a roomers will be (potentially giving). I can morally justify this (my parents didn't rent it out because it wasn't in good enough condition - I got new windows, doors, central heating, installed and pay for bb/Sky etc.). So I hope this will be ok. I suppose if my parents and my tax is done separately, which it will, then the difference should go unnoticed.



Well strictly speaking, the difference between what they're charging you in rent and the actual Market rent for similar property, is a gift from them to you, so there's no tax consequence for them there.

As long as they are declaring the rent they are actually receiving then there's no problem.


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## serotoninsid (18 Aug 2011)

Khublei said:


> But with things like bins for example - I hope they're as into recycling if they not footing the bin bill.


Good luck with that - as I would expect that your mileage will vary.  Some will, some won't.  I know as I've had the arguments - and other-times, when just wanting a quiet life end up sifting through the bin in order to re-sort.  Having said that, I wouldn't stop doing it.  The sooner recycling becomes ingrained in the mindset of all, the better.  It's an education to see just how much food people waste.  Furthermore, it's just so easy to recycle once you have a routine in place - but some people need to get out of the feckless 'dump all' attitude they're accustomed to.

[/rantover]


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## Murfnm (18 Aug 2011)

I rent 2 rooms in my house, bills (ESB, Gas, TV license, UPC) split 3 ways.  Got rid of the land line phone as that was an awful bill to deal with - going through the calls etc - everyone has mobiles these days anyhow.
With regard to recycling - in my experience if you make it easy for them with separate bins inside for recycling/glass/general waste/food (ikea have good selection, varying sizes) they do eventually pick up the habit, also,  I pay the bin charges and informed them that if they didnt use the recycling bins then I would be adding an additional charge to the rent.  With the talk of water charges coming - these too will be divided equally between us all.


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## Khublei (18 Aug 2011)

Thanks everyone for the replies. I'm really interested in hearing stories about how others have got on with this scheme. Recycling bins indoors is a definite so! If anyone has any other stories/advice keep 'em coming. 

One more question - as a teacher I some years go on holidays for 2/3 months. It's still considered my PPR during this time, right?


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## serotoninsid (18 Aug 2011)

Murfnm said:


> Got rid of the land line phone as that was an awful bill to deal with - going through the calls etc - everyone has mobiles these days anyhow.


+1 - still have the landline since day 1 - but only use it for broadband - no phone left anywhere although there are phone points in all rooms.  I always thought someone would run up a bill on it over the 5 years I've been doing this gig - but nobody ever did.



Khublei said:


> One more question - as a teacher I some years go on holidays for 2/3 months. It's still considered my PPR during this time, right?


Yes, it is.


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## Murfnm (18 Aug 2011)

I would advise that if you have anything of sentimental value you put it in storage...replace that prized china & crystal ware with a cheap set from argos.  Things can and do get damaged, people might not be as careful as you with your stuff!

Its a little bit of an adjustment if you are not used to living with others, but it makes life interesting!


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## MugsGame (18 Aug 2011)

Khublei said:


> I've read that I will still qualify, it just becomes a sort of sub-let situation. Do I have to do anything differently or justs till submit a tax return at the end? The deal with my parents is pretty casual so would I need a written lease and proof of having paid them for the tax man?



AFAIK the 'Rent a room scheme' is for *owner* occupiers renting out a room in their PPR.

You rent your residence, so you will not have any tax liability from sub-letting a room.

Your parents may have a tax liability on the rent they receive from you, regardless of whether or not you rent a room. Your parents own the house, do not occupy it, but are receiving rental income from it and presumably have a  separate PPR!


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## Khublei (18 Aug 2011)

I'm going to look into the issue of owner occupier. I've definitely heard of people doing it with properties they were renting, just have to see if they were doing it legally or not.


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## Artistapinay (23 Aug 2011)

It is better to split the bills for monthly expenses like water, electricity and others.


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