Own a house, renting another, implications?

E

Esme

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Hi

I own a property, which I am about to rent out to a guy on rent allowance, as I have moved towns and am now renting a house privately. I am not entitled to rent allowance myself as I own a property. I am a single mother, work part time and get the one parent family allowance.

I am wondering what the implications are and do I let social welfare now that I am renting out my house (much less than mortgage, not great area, great difficulty in getting a tenant), renting another house myself (more than i'd like) and what happens then?

Thanks

Esme
 
When you were assessed for one parent family payment, were you living in your own property or were you living elsewhere?

As your property isn't your primary residence, the capital value will now be assessed as means (capital value = property value less mortgage outstanding). If there are means to be assessed which haven't already been assessed, your OPFP will be reviewed. The rental income itself isn't taken into account, just the capital value of the property.

If you rent to a tenant who is claiming Rent Supplement, you will be required to supply your PPSN as part of the application. This is passed onto the Revenue Commissioners.

There may be implications for your mortgage depending on what type of mortgage you're on.
 
Hi

Thanks for your reply.

Yes, I was living in my property when assessed for one parent family allowance.
 
In that case, you should contact SW to advise them of your change in circumstances (address, etc) and they'll carry out a review of your claim. Depending on the amounts involved (capital value & outstanding mortgage) there may be no means to assess against you so there'll be no change in your entitlements.
 
Thanks a million, I have just spoken to them, and they have told me this too, so once I have proof of tenant paying rent and me paying rent to landlord, it shouldn't be a problem.

Also, my landlord is not declaring he is renting a house, would I get him into trouble then? I am not receiving rent allowance.

Esme
 
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