Is it OK to rent a room in a 2 bed affordable apartment? thinking of €800-850 a month

hi i was wondering would anyone know is it possible to rent a room in a 2 bed affordable apartment for 800 or 850 a month? is it ok to rent it for this price just once it doesnt go over the 10000 euro cut off point before your taxed?

Re: rent a room scheme

Sounds like you want to rent out the whole apt under the guise of just a room... abusing the affordable housing system???

Re: rent a room scheme

Cheeus said:

Sounds like you want to rent out the whole apt under the guise of just a room... abusing the affordable housing system???

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Why is it an abuse? The OP has said nothing of the kind he has asked a simple question about the rent a room scheme. There really is no call here for accusing the OP of abusing the AH system. I am growing really tired of people begrudging people that are availing of AH schemes.

OP – yes you are most definitely allowed to rent out a room in the apartment. The most you can get tax free is 10,000 P/A under this scheme and you will have to file annual tax returns.

If you are in the process of purchasing an AH you will have to get use to comments like this, I just let them wash over me now. It is amazing how even some of my own friends who are mortgaged up to the hilt have behaved towards me in relation to my AH. You really see how getting a big discount brings out the little green monster in people you never would of though would have been bothered.

Typical of this country, no one can just say.
“fair play god I wish I could have gotten that AH, but as it happens property was affordable when I bought X years ago so I did not really need it oh and best of luck to you”

I wish I did not have to get an AH, but I am single and have no option. I signed up like every one else waited two years and got a place. I will not be apologising for it and I most certainly will be renting out a room and trying to get as much as I can for it, like your self. There is nothing wrong with this you are breaking no rules and not abusing anything.

I wish you the best of luck with your AH, and hope you can get the full 10,000 p/a in tax free income, the rent a room scheme is designed to help people in the first years of going it alone in their own place.

Sorry for the rant, but comments like this are unfair unwarranted and are better left unsaid.

Re: Is it OK to rent a room in a 2 bed affordable apartment? thinking of €800-850 a m

I'd be interested in seeing what a person prepared to 850 for a room looks like. But assuming such a person exists then you should have no other issues.

Re: Is it OK to rent a room in a 2 bed affordable apartment? thinking of €800-850 a m

Howitzer said:

I'd be interested in seeing what a person prepared to 850 for a room looks like. But assuming such a person exists then you should have no other issues.

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That is actually the other very good point; just because you can potentially get 10,000 P/A does not mean that you actually will get the full amount. The second room in the two beds in the development that I am getting my AH in are listed at 700 per month for rent I’d say that would be the absolute max you would be likely to get at the moment in the docklands.

Re: Is it OK to rent a room in a 2 bed affordable apartment? thinking of €800-850 a m

If your mortgage is from a bank, no problem.

If you're on the shared ownership scheme it depends on your local authority. DCC require that you get written permission from them first.

Re: rent a room scheme

Starky said:

Why is it an abuse? The OP has said nothing of the kind he has asked a simple question about the rent a room scheme. There really is no call here for accusing the OP of abusing the AH system. I am growing really tired of people begrudging people that are availing of AH schemes.

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Note the question mark at the end of my comment. It's a fairly legitimate query...the OP bought an apt worth 285k on the open market. Where could you rent out a room for €850 for an apt of that value?? Rooms in the area the OP bought are going for €350, so apologies if the question was purely hypothetical, but it doesn't add up.

Far from begrudging people buying under the affordable scheme, I'm buying under it myself and I'd hope that people would be on the alert to others abusing AH - perhaps the OP was really just wondering, but plenty of other people do rent out entire affordable apts - some within weeks of purchasing!

Where someone does rent out an entire apt it's a clear abuse. If you're not going to live there sell it and pay the clawback. What the council is owed in clawback then enables someone else to buy under the scheme.

Re: rent a room scheme

Cheeus said:

Note the question mark at the end of my comment. It's a fairly legitimate query...the OP bought an apt worth 285k on the open market. Where could you rent out a room for €850 for an apt of that value?? Rooms in the area the OP bought are going for €350, so apologies if the question was purely hypothetical, but it doesn't add up.

Far from begrudging people buying under the affordable scheme, I'm buying under it myself and I'd hope that people would be on the alert to others abusing AH - perhaps the OP was really just wondering, but plenty of other people do rent out entire affordable apts - some within weeks of purchasing!

Where someone does rent out an entire apt it's a clear abuse. If you're not going to live there sell it and pay the clawback. What the council is owed in clawback then enables someone else to buy under the scheme.

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Fair enough I obviously jumped then gun there as I did not have all the facts if the apartment was worth 285 and the rooms are currently renting for €350 p/m in that particular area then expecting to get 850 might be a bit odd.
I was just assuming that the apartment was some where in Dublin city centre, as that would be the only place that I would imagine you could get any where near that kind of money for letting a spare room.

Apologies for me going on a rant there, its just I have been getting loads of various comments from people in relation to AH and am getting tired listening to them, I however realise now that your comment was most likely warranted, and that I just took you up wrong.

I personally am intending to use the AH scheme to secure a home and am not looking to make a quick buck out of it. I would also be on the look out for others who might be looking to abuse the system.

Good luck with the your AH ;-)

Re: Is it OK to rent a room in a 2 bed affordable apartment? thinking of €800-850 a m

Hi all,
On the subject of renting I was told by FCC your home must be your permanent residence (ie you can rent a room but must also reside there) what is situation with going travelling for say 6-12months? Can I rent the entire place or just the other room or none at all? IS my AH still my permanent residence as I would be moving around whilst travelling in other words having no other fixed residence.. does anyone have any experience of this? I too am very much against abuse of system before anyone gets up in arms against this, want to make sure I am doing things properly!If the answer is you can't rent without being there then I would have to leave apartment empty and save up years mortgage in advance? Or can I even leave it empty? Sorry if this post is a bit convoluted!!