Affordable Housing Rules Question

bigchicken said:
There is no problem renting out a room but you still need to be living there.
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Hi bigchicken......that's for your reply.....your post seems to contradict what the above poster is saying. So who is right??? I wouldn't say this varies from council to council either.

Does anyone know, can you rent out a room in a AH if it's your Principle Place of Residence and living in it!! to avail of the governmet rent-a-room scheme??


Thanks
 
I rang DCC again and confirmed that you are not permitted to rent out a spare room in an apartment under the AH scheme. Therefore you cannot avail of the rent-a-room scheme.
 
DCC told me I could rent out a room as long as I was still living there! So did the estate agent that showed me around the apartment when i got offered one.(I didnt take it in the end so dont have any further information).
 
Very strange.

Although in my experience with the DCC, not totally unexpected that they would be telling different people different things.
 
so lets say i'm single now and i buy a 2 bed apartment from the council. in a few years time i'm in a relationship and my partner decides to move in. does this then mean that she cannot pay anthing towards the mortgage??
 
i just phoned them there to ask about renting a room, and the guy told me that officially "no" was the answer.. but as long as no more than 600 euro per month was charged that "whose to know?"

i also asked about the situation i described above, and as long as a personal arrangement was made between the two that it was fine...

seems to me like you can, they are just reluctant to officially say you can in case this leads to people profiteering
 
doctorious said:
i just phoned them there to ask about renting a room, and the guy told me that officially "no" was the answer.. but as long as no more than 600 euro per month was charged that "whose to know?"
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Doesn't sound like very authoritative information to me. Try getting that in writing.
 
But as you say in your second post, in reality things are quite different.

What do you mean by that €600 figure? That if you rented a room to a stranger for less than €600 that its possible? Its not something I'd want to try. The last thing I want is to get lumped with a massive clawback! (I'm in the process of buying under the scheme myself.) But like you say, if you want to get a spouse in or even a family member then in reality there should be no problem.
 
The €600 presumably comes from the annual rent a room limit of €7,620 - the actual pro-rata monthly figure would be €635 not €600.
 
the 600 eur figure is related to the government rent a room scheme, the max allowed before you have to pay tax is 7200 per year - ie 600 * 12.......i'm in the process of buying too....but i think we're gettin overly worried about it....if you rent a room to a mate etc for less than 600 i think it would be okay.....but it really is a very grey area which the council do not seem to want to address......it's not even discussed in any of the documentation not in "your affordable home handbook".....seems to me that they can't stop you from renting a room as long as it remains your PPR.....and if you can't "rent" it...you could get around this by forming a "personal agreement"
 
But even if you rent for less than €600, wouldn't you still have to register with the PRTB? And wouldn't your tenant be eligible to claim rent relief? The DCC could identify if you're renting the room couldn't they?
 
No - rent a room scheme is exempt from PRTB registration and the tenant can still claim rental tax relief.
 
from the Revenues owner occupier relief guide.....i feel that this is the councils position but officially they are saying no to reduce perceived/actual profiteering

"An owner-occupier may wish to share his or her house with family or friends. Insuch situations the owner-occupier relief continues to apply, provided that the house continues to be used by the individual as his or her sole or main
residence for the relevant years. If the owner-occupier receives any income in
respect of the sharing arrangement, this should be included in the
owner-occupier’s tax return. An owner-occupier is entitled to claim rent-a-room relief in respect of income, up to €7,620, received from the rental of room(s) in his or her residence."
 
And so what would the situation be regarding somebody getting rent allowance...??? i.e.. the person renting a room is getting rent allowance but actively looking for work.
 
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