Rent Allowance seems to be a dirty word. Unreasonably so.
I've been renting over 5 years and it was hard sometimes when the subject of Rent Allowance was brought up. It puts an added pressure when looking and engenders some very frustrating, bigoted responses from agents and landlords alike.
Firstly, as a tenant you would be foolish not to rent a property that the "Lord" does not except Rent Allowance. For example if you ever find your self out of work for a period it is a great fall back. People don't factor this one in, tenants nor landlords.
Secondly, this idea that the "Lord"
excepts rent allowance is a bit of an misnomer. The lanlord excepts nothing more in real terms the agreement that the rent will be paid. The tenant will recieve a cheque in which they can make up the majority of the rent but this is all behind scenes so the landlord is not involved in any extra way apart fromperioduically sigining a form. Now if the landlord is avoiding paying income tax or the revenue altogther then this I believe is the main reason why its not "excepted".
Thirdly, while Rent Allowance is identified with people mainly on the dole, . Often regarded People who are too lazy and get money for nothing think again. Just remember this, the Irish Government are paying vast amounts of Tax payers money into susidising landlords, so in essence lanlords are no better or worse than there tenants for enjoying this money complimetns of the Irish Tax payer at large.
The rent allowance scheme was originally set up by the Government (FG I think) as a temporary measure, but like all things it has become a integral part of the economy and if it was pulled tomorrow the rental sector would essentially collapse.
So remember Landlords, when you buy your investment property, be thankful the Government has a scheme that if needs be, will subsidise the majority of your income if you choose the right tenant.
Oh yea and don't forget also you can write of a a lot of your refurb costs against tax if you are declaring. So how can you loose, when all you have to worry about it the "stereotype" of rent allowance tenants.
Someday you might need to avail of the service from the other side!
Here is parlimentary debate,
Minister for Social and Family Affairs (Mr. Brennan): I want to refer to matters raised by Deputy Gilmore and others. There is a case for reforming rent allowance because the reality is that the State is paying approximately €400 million per year on a temporary basis to house 60,000 people. The questions arising from that issue are obvious. For example, would it be preferable to put that money into permanent housing? If one went to the local bank with €300 million per year, it would probably write a cheque for €6 billion, which would build a lot of houses. What, however, is to be done with the people who have fallen on hard times without notice? They have to be looked after in some way. I am certainly open to reforming rent allowance in some way but it must be done in a practical and sensible manner.
http://debates.oireachtas.ie/DDebate.aspx?F=DAL20060214.xml&Page=1&Ex=971#N971