Yes and yes.Is she considered to be a tenant and do I have to register the tenancy with the RTB?
That's a well founded concern.I'm worried that I will be setting the rent level very low for the future and that I won't be able to return to a market rent when her course is over and she moves out.
Well, the rental profits would definitely be taxable and you can't claim a deduction for mortgage interest (if relevant) where the tenancy is not registered with the RTB.You may still have tax obligations on the income.
Unless the rental income is below €5,000 and it is the OP's only source of non-PAYE income I think. In that case they are not a chargeable person, right?Well, the rental profits would definitely be taxable and you can't claim a deduction for mortgage interest (if relevant) where the tenancy is not registered with the RTB.
i'd say you are popular amongst your relations!!!! You have an apartment and your advise is not to let the OP's daughter stay in the apartment?!!!Personally I'd rent the apartment to a regular tenant & give her financial support from the rental income.
Family members can view the investment property as 'theirs' after they've been in occupation for an extended time.
Correct.your advise is not to let the OP's daughter stay in the apartment
give her financial support from the rental income.
One big flaw with that idea. Tax. If the OP's daughter needs to rent an apartment, and the OP is providing the financial support, then that comes out of after-tax income.Easier to give a defined financial support for x number of months/ years (or a lump sum if you can do that).
Point 1 becomes irrelevant if the OP's daughter is not paying rent. OP is probably better off in the long run with no rent than with a small rent.You need to add two elements to the 'cost' side:
1. OPs concern was that if it was rented at below market value, they might have an issue when it comes to returning to market rent.
2. Potentially falling out with offspring over property (not worth any money).
Unless they are living in it themselves, it would not qualify under the rent a room allowances.If its more then 1 bed why don't you rent a room to your daughter instead of the entire property?
I don't think @anntionette was referring to the scheme but rather that the daughter does not have to be the sole occupant of the property.Unless they are living in it themselves, it would not qualify under the rent a room allowances.
I don't think @anntionette was referring to the scheme but rather that the daughter does not have to be the sole occupant of the property.
Although the rent-a-room scheme could be an option for the OP's daughter. She can rent the property at market rent and sub let a room. For example, market rent could be €1500/month and the daughter could sublet a room for €1000/month. As long as the apartment is her sole residence, she is entitled to claim rent-a-room relief as long as there is a provision to allow her to sub-let
The OP maintains market rent and income. The daughter gets a discount, effectively costing her €500/m. The only downside is that the daughter will have full tenancy rights and can't be expected to move on when the time comes.
she will be paying me a very low rent.
It's hard to advise without knowing a) the market value of the apartment; b) the discount you would be giving her; c) your marginal rate.so I think I will rent my apartment on the open market and ask her to try to find an apartment of her own to rent, then I will and give her a few quid each month towards her rent.
That's it in a nutshell. You're using after tax income to subsidize her living in another apartment.But if you are on the higher marginal rate you are vaporising half of the gross rent in tax before you give her any.
Yes, and she'll probably take better care of it than a random tenant would.In your shoes I would let her live rent free and let her pay the management charges, insurance, utilities, etc. Maybe she could replace furniture or the like too. When she leaves you have no issue re-setting rent to market rates.