Renting a room in your home?

Rent A Room Scheme

The IPOA often receive queries in relation to the rent a room scheme.

If you rent out a room(s) in your home, you are not covered by landlord/tenant legislation in Ireland. You do not have to register with the RTB, you do not have to provide a rent book to the tenant or the accommodation does not have to meet minimum physical standards.

Private tenants living in your principal home are living under an agreement not a tenancy and are entitled to “reasonable notice” if you choose to terminate the agreement.

Tenants are, however, entitled to refer disputes regarding periods of reasonable notice, retention of deposits, and disputes regarding deductions from rent for damage to property that is over and above normal “wear and tear” to the Small Claims Court.

If you rent out a room(s) in your home to private tenants during the relevant tax year, the rental income you earn will be exempt from income tax, provided this income does not exceed €14,000. Tenants who rent out a room(s) in your home are entitled to claim tax relief on rent paid.

You cannot get tax relief on the rental income if you rent out a room in your home to a son or daughter.

We strongly recommend that you agree some house – rules in writing in advance of an agreement.  Both parties should sign this, you can both refer to it in the event of confusion or disagreement.

Some suggested House-Rules

  1. What will the period of the tenancy be?
  2. How much will the rent be?
  3. How will rent be paid
  4. Will paid weekly/fortnightly/monthly?
  5. Is smoking permitted?
  6. Are pets allowed?
  7. Can visitors or friends stay over?
  8. Are there any restrictions regarding noise levels?
  9. Emergency Contact details?
  10. Don’t forget references!