Part 4 tenancy when renting to students

[Confused2022]

I am in the process of purchasing a second property in the city where my daughter attends university. My daughter will live in the property and the other 2 rooms will be rented out to students who I hope to find via Studentpad. I intend to offer a fixed term tenancy from 1 Sep to end May as I or family members who live abroad may use the property in the summer months.

Is it correct that in such a situation the students will acquire part 4 tenancy after 6 months?
If so can I issue them the required 90 days notice prior to the end of the 6 month period on 27 February (which would line up with the fixed term : end date of 27 May ) in order to avoid part 4 tenancy being acquired?

 

[DannyBoyD]

Rent the property to your daughter; let her find sharers.

They will be your daughters guests from a legal standpoint and so will not acquire tenancy rights.

Your daughter can earn 14k a year tax free under the rent-a-room scheme.

I believe she can gift you (and your spouse if you have one) €3k each per year without incurring gift tax.

 

[Dr Strangelove]

Rent the property to your daughter; let her find sharers.........I believe she can gift you (and your spouse if you have one) €3k each per year without incurring gift tax.

that structure is an obvious contrivance to evade tax.

I would structure it a bit differently:
1) Let your daughter live in the house rent free;
2) She takes on licensees to live with who she can tell to leave at whim. They will not be tenants and nothing contractually should imply this.
3) Once she takes in no more than €14k a year in rent she has no tax obligation under the rent-a-room scheme
4) This €14k can fund management charges, insurance, her university fees and living expenses

 

[DannyBoyD]

Is it incorrect to say offspring can gift their parent €3k per annum?

 

[Dr Strangelove]

Is it incorrect to say offspring can gift their parent €3k per annum?

No.

 

[Greenbook]

No.

Correct. Basically, anybody can gift anybody upto €3000 per year tax free. It doesn't matter what the family relationship is and there need not be a family relationship at all - there is nothing stopping someone making a tax free gift of €3k to a random stranger

 

[Leo]

Is it correct that in such a situation the students will acquire part 4 tenancy after 6 months?

Not if you word the agreement correctly to specify that they are licensees and do not have rights of sole occupancy, retain your right to visit. Licensees to not gain Part 4 rights and RTB registration is not required. Given your daughter will also live there will significantly strengthen the case of them being licencees and not tenants.