Renting house below market rate/ staying one weekend a month? Register RTB

nbc

Registered User
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Hi
This is an unusual one
I have a 2 bedroom house in dublin
I’m London based currently
I’ve previously rented the property at market rate
I wanted to see if there was a market for renting it out at 30 %below market rate but where the tenants would vacate one long weekend a month for me to come home
The answer is yes there is a market for this- I’ve had lots of interest- in fact some people are happy for me to come back a second weekend as long as they only need to vacate once.
I’ll cut to the chase
Do I need to register this with the RTB
If I do I’m bunched in terms of rent charged in future due to rental pressure zone legislation and max 4% price rises
Can I simply treat it as an effective ‘house share’ once my insurance company tells me it’s ok
Regards
nbc
 
If you register it with the RTB, it is a "tenancy" and the tenants will have Part 4 rights after 6 months. These rights may over ride any other agreement in place and include quiet enjoyment of the property (I think). Why not keep the smaller of the two bedrooms for yourself and rent out the second room as a licensee agreement. Based on the fact that you are only there once a month, you could charge more rent (I assume there is also a market for this) and retain more control of your property.
 
If you dont register with rtb then you cant deduct mortg interest (if relevant) when calcukating yiur rent profit
 
@Tadaima is spot on.

Better still if you can reconfigure, if it's big enough, to have the kitchen as a kitchen/ common room; then you could have 3 bedrooms.

Keep the smallest one for yourself & you'll also be able to avail of the 14k per annum tax free 'rent-a-room'
 
OP should of course make their own choices, but personally I wouldn't see it as an issue.
 
Well you ain't the revenue commissioners.
Thanks lads
Regardless of the Rac implications can I assume that if I have access to the house for at least one weekend a month that I can assume it’s a house share and so I don’t need to register with with RTB and so I can charge market rent in future should I let it out whole?
Is a contract and deposit necessary for a house share?
 
Definitely look for deposit
House rules a good idea.
Lodgers have the same legal status as a guest so can be asked to leave at any time.
From PRTB point of view the property must not have been rented in the previous 2 yrs (I think? Check site) for market rent to apply. House share doesnt count, prtb has no role.

Edit: from prtb site "Exempt properties include properties that have not been rented for a period of two years prior to the immediate tenancy".

House sharers are guests and not tenants; so you need to have it as a house share for 2 years.
 
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I assume that if I have access to the house for at least one weekend a month that I can assume it’s a house share and so I don’t need to register with with RTB and so I can charge market rent in future should I let it out whole?
I wouldn't assume that at all.

I'm absolutely sure the RTB (and the Courts for that matter) would consider this arrangement to constitute a registerable tenancy.
 
I'm absolutely sure the RTB (and the Courts for that matter) would consider this arrangement to constitute a registerable tenancy.
Do you know of any actual cases that would support your view?
 
It should be self evident that the rent paying occupants would not be considered mere licensees (aka lodgers) when the property owner lives in another country!

In my opinion, the property owner would actually be considered a licensee of his tenants on the occasions that he stays at the property.

I've no doubt at all that the RTB (and Courts) would consider this arrangement to be a registerable tenancy and that Part 4 rights would kick in after 6 months.

Aside from the legalities, I think the proposed arrangement is daft.

The cost of a hotel room for an occasional weekend stay in Dublin would be considerably less than a 30% discount on the market rent for a 2-bed house.
 
Why would anybody bring a case they have no hope of winning?

I can't point you to a case to prove that rain is wet either - doesn't mean it isn't.

It is blindingly obvious that a London resident can't have lodgers in a Dublin house.
 
Theres the 'blindingly obvious' and there's the law!
My point is that legal definitions often do not correspond to what we ordinary muggles generally think they do.
The OP might maintain this property as his home in Ireland, register bank accounts/cars etc at the address and have his mail delivered there.
He may maintain a broadband/TV service under his name and have a telephone service connected. He may , when not traveling or working, arrive there to stay periodically and frequently. He enjoys the benefits of full ownership while any lodger must obey the rules pertaining to a lodger.
Regards
J
 
He enjoys the benefits of full ownership while any lodger must obey the rules pertaining to a lodger.

I am not sure which way you are arguing here.

Either way Revenue are very clear about this:

What type of residence qualifies?
Sole or main residence

Your main residence is your home for most of the year and where friends would expect to find you.

The OP's Irish address is neither her sole nor her main residence and would not be where her friends would expect to find her.

She is not eligible for rent-a-room relief.
 
This is really very simple.

A person that is resident in London cannot take lodgers in a property they own in Dublin.

I’m amazed anybody would try to argue otherwise.
 
This is really very simple.

A person that is resident in London cannot take lodgers in a property they own in Dublin.

I’m amazed anybody would try to argue otherwise.
I think some of this is getting out of hand lol
First thing is I worked hard to buy this house and when I come home i wish to stay in my home - life isn’t all down to money lol
Secondly I think I’m allowed to have people rent my spare room regardless of whether you call them lodgers or not
My Initial question remains and from what I can it’s clearly not clear cut so I shall proceed as a house share- I made no reference in my question to rent a room allowance
By the way I pay all the bills here as I’ve always down- it’s my home in Ireland and I spend every summer here
 
I think I’m allowed to have people rent my spare room
How can you have a "spare room" in a house which is not your primary residence?

I really don't see how this arrangement could be described as a "house share" when you reside elsewhere.

Your question boils down to whether the rent paying occupants will be mere licensees (aka lodgers) or tenants. If the house is not your primary residence, any rent paying occupants cannot be lodgers - so they must be tenants!

I think it is entirely clear cut that you will be creating a registerable tenancy.
 
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