renting a room, what contract?

W

wheels

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Hi guys

I've just agreed to rent a room to someone in my apartment and I want to make it run smoothly. Should I get them to sign a contract? Stating the term of the renting period, the terms etc. (such as bills, rent)?

I understand that it's not a lease but is there a licencee contract I could offer?
 
you are using the rent-a-room scheme and this is a licence agreement. It helps to have something in writing espcially a note of start date, what to do in the event of leaving (month's notice), the amount of the rent, how you will accept payment, what you will do about bills, and your arrangements for domestic duties(they can be a source of tension - if its your place the other person can expect you to do all the work). If you want to build the relationship as after all you will be living with this person I'd suggest that you sit down and write it together on a blank piece of paper and both sign it, keep it simple and to the point, no legal language, just two pals setting this out so that there is clarity for both. Then you make a copy and give the other person a copy.
 
Will the rent be much over the threshold of €10,000 a year? If not, it may be worth keeping it under that amount to avail of rent a room scheme.
 
uncorked said:
Will the rent be much over the threshold of €10,000 a year? If not, it may be worth keeping it under that amount to avail of rent a room scheme.
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Very good advice. If you exceed this, you are liable to pay Income Tax on the rent AND it can have an impact on your home's exemption from CGT when you eventually sell.
 
LDFerguson said:
Very good advice. If you exceed this, you are liable to pay Income Tax on the rent AND it can have an impact on your home's exemption from CGT when you eventually sell.
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I don't think there's any effect on CGT exemption if the amount of rent received under the RaR shceme exceeds 10,000 a year. I think the most important point is that it's a room in your PPR that is being rented out.
 
you can rent more than one room provided total rent is within threshold. rent a room scheme title can be misleading in this respect
 
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