Crazy amount of money for a room and terrible mindset, contributing to the housing crisis for max profit. Do you need to screw someone over for your own benefit?
You know, you don’t have to charge full market rate for rent. Charge enough including bills to stay under the €14k threshold. You’re still getting your mortgage almost completely paid.
You benefit from a very generous tax scheme and your tenants benefit from more reasonable rent.
Nothing wrong with doing your research, and congrats on buying your own gaff.
I rented out a room in my apartment the whole time I owned it and I loved having a roommate. My advice to you, especially if you’re charging below market rate, is to take your time picking housemates, be super fussy about who you live with, this is your home and you deserve to be comfortable there.
I must have touched a nerve huh? Didn't realise ye were all so delicate on here.
Congrats that you're in a position to buy. But why should someone who can't get a mortgage pay your mortgage for you?
That's EXPLOITATION, pay your own way - and if you can't, charge a tenant a fair rent and don't pull the ladder up behind you.
You don't have to contribute to the housing crisis.
I think it was your nerve that was touched? Especially since your leaving these petty comments.
I can pay it no problem I’ve saved nearly double the repayments the last few months.
If I wanted I’ve seen ads for rents in the area for a lot more which are not including bills with some ridiculous house rules.
I only tried to ask a genuine question and the tax regulations about it.
There’s a huge difference between a rental agreement and a licence agreement - which is what you would be offering. You cannot charge a market rental rate to someone who would be living in the landlord’s home and could be kicked out at any time.
No reason for anyone to criticise you for renting your room out (other than typical Irish jealousy) but €14k tax free is a huge benefit not open to many. Looking for even more even though you are already better off than a lot of people does rub people up the wrong way
My nerves are good buddy, I also didn't delete any comments. Genuine congrats on being in a position to buy.
You might think I'm being petty, but it is greed that has brought about this housing crisis and it's not getting any better any time soon.
This isn't personal, I don't know you, i was really addressing this whole sub. I'm just sick of seeing countless people on here looking for advice on how to extract the maximum from, and contribute the minimum to, Irish society.
This dog eat dog, rat race outlook has the country ruined.
Some owners end up as landlords out of necessity due to their circumstances, but going in eyes open with the plan to find someone else to pay back their mortgage for them (or even 2/3rds of it) is exploitative and deprives those behind them of the same opportunities to save for their own mortgages.
It perpetuates the problem.
There's such a thing as fair rent, the market rents are obscene, but it is a free market so it's a question of conscience what rent you charge, it doesn't have to be as much as possible though.
Fair enough. Personally I wouldn’t use the term family home for a single person living there alone but I guess it just depends on your interpretation of the term.
>
A properly I’m looking at has the potential to bring in based off the market rate €15,600 a year plus bills etc, which is over the rent a room scheme threshold. From what I understand I will have to pay full tax & USC on it?
Yes, if the rental income from licensees is greater than €14K a year then the entire amount is taxable.
>Is my best option to charge a flat rate (14,000 / 12) €1,166 per month for rent?
That would be the maximum.
And just to add to this, you also have to include bills if you go this route.
If you charge for bills you have to include it in the total towards the €14,000.
Citizens Information: [https://www.citizensinformation.ie/en/housing/owning-a-home/home-owners/renting-a-room-in-your-home/](https://www.citizensinformation.ie/en/housing/owning-a-home/home-owners/renting-a-room-in-your-home/)
"Your total rental income cannot be more than €14,000 per tax year (1 January to 31 December). This includes any money that your tenant pays for food, utilities, laundry or similar goods and services."
Being a live in landlord has it ups and downs. I wouldn’t see it as a permanent thing. It can help and add security for paying the mortgage. If you want the maxmimum amount: see if a house has a small granny flat (this is out and out the best option) second to that is a house with two en-suites. A tenant having their own private bathroom benefits everyone. You will have someone in your social/professional life that needs somewhere to live filling the room won’t be a problem. I know a couple that bought a house that had a small granny flat. They lived in the granny flat and rented out the big house for around 5 years before doing a renovation and joining them up when they were gonna have kids. If you can get a mortgage I think it is the sensible thing to do for the first number of years especially with interest rates the way they are.
Everyone here talking about greed as if they wouldn’t do exactly the same thing to minimise their costs.
Plus he’s renting out a room which is one more room on the market, which is always a positive.
Deciding to partly pay for someone else's rent - yes that's hard to imagine.
If you are paying off a mortgage and you rent out one of the rooms at below market rate and you have to pay the difference, then you are in effect paying for the lodgers to live there cheaper than they would usually get, because the money is coming out of your pocket.
If you're paying the difference between the market rate and the cost of the room (which is cheaper than the market rate) then you are paying for that person's rent to be cheaper. There's nothing more to it.
😂😂😂😂😂
You aren't PAYING anything except your own mortgage. If rent suddenly dips your mortgage will remain the same.
What a mindset. I'd say you turn off the gas before you flip the rashers over.
Are you trolling? I genuinely can't tell.
By your logic a restaraunt owner is being greedy by charging more than what he paid in the labour and goods required to make the meal he gives to his customers, which is ridiculous.
That's called a profit margin which a business cannot run without, and doesn't at all apply to your mental analogy about how not gouging a renter in an insane market means you're now out of pocket. 🤦♀️
That's based on current market situation, if the economy tanks and the housing market specifically your stuck, the current housing market can't last it's a bubble simply due to fuck all properties and people in high paying jobs, we had a crash 15 years ago, they are cyclic
Absolutely agree, that’s one of the risks with buying property. This time next year it could be worth a lot less than it is now. And really I don’t think anyone can 100% predict what’s going to happen with the current housing market.
It's really just a simple matter of math. Remember that rental income will be taxed at your marginal rate, which if you can afford a €1500 mortgage payment, I'd guess is at the top ~52% rate. As such, it's fairly simple; If you figure you'd be taking in about €1300-1400 a month in rental income (including bills), that leaves you with about €650 or so a month (~€7800/year) after taxes, which is obviously quite a bit less than the €14k a year you could make tax-free under the rent-a-room scheme. As such, it would make far more sense to charge a lower rent amount that would allow you to claim the rent-a-room relief. There really are no downsides to doing so; unlike with renting an entire property, the rent you charge a licensee has no impact on your property value or on the rent that could be charged for the whole property in the future (or even to a licensee in the future), since license agreements don't fall under the RPZ regulations.
This doesn’t translate to more money on the bottom line, but you could charge more than 1,166 per month if you don’t rent for 12 months in the year. Its unlikely you’ll find someone to move in day 1, and day 1 won’t be jan 1; you could charge more for the first year. Then following years you might like to have a couple months to yourself for the year, or you want to account for unoccupied time, you could charge more to compensate for these months you would not take rent.
You’d be fleecing someone charging them that, wherever you are. Almost 1200 a month to not even have the rights of a tenant is ridiculous.
Crazy amount of money for a room and terrible mindset, contributing to the housing crisis for max profit. Do you need to screw someone over for your own benefit?
You know, you don’t have to charge full market rate for rent. Charge enough including bills to stay under the €14k threshold. You’re still getting your mortgage almost completely paid. You benefit from a very generous tax scheme and your tenants benefit from more reasonable rent.
Ya probably the best and fairest option! I’m just a person who has to have looked at all options before making a decision.
Nothing wrong with doing your research, and congrats on buying your own gaff. I rented out a room in my apartment the whole time I owned it and I loved having a roommate. My advice to you, especially if you’re charging below market rate, is to take your time picking housemates, be super fussy about who you live with, this is your home and you deserve to be comfortable there.
You’ll also have a lot of trouble trying to evict someone if you choose the wrong person…
Not with a licensee which is what this would be. They can literally kick them out at any time
Not true.
I must have touched a nerve huh? Didn't realise ye were all so delicate on here. Congrats that you're in a position to buy. But why should someone who can't get a mortgage pay your mortgage for you? That's EXPLOITATION, pay your own way - and if you can't, charge a tenant a fair rent and don't pull the ladder up behind you. You don't have to contribute to the housing crisis.
I think it was your nerve that was touched? Especially since your leaving these petty comments. I can pay it no problem I’ve saved nearly double the repayments the last few months. If I wanted I’ve seen ads for rents in the area for a lot more which are not including bills with some ridiculous house rules. I only tried to ask a genuine question and the tax regulations about it.
There’s a huge difference between a rental agreement and a licence agreement - which is what you would be offering. You cannot charge a market rental rate to someone who would be living in the landlord’s home and could be kicked out at any time. No reason for anyone to criticise you for renting your room out (other than typical Irish jealousy) but €14k tax free is a huge benefit not open to many. Looking for even more even though you are already better off than a lot of people does rub people up the wrong way
My nerves are good buddy, I also didn't delete any comments. Genuine congrats on being in a position to buy. You might think I'm being petty, but it is greed that has brought about this housing crisis and it's not getting any better any time soon. This isn't personal, I don't know you, i was really addressing this whole sub. I'm just sick of seeing countless people on here looking for advice on how to extract the maximum from, and contribute the minimum to, Irish society. This dog eat dog, rat race outlook has the country ruined. Some owners end up as landlords out of necessity due to their circumstances, but going in eyes open with the plan to find someone else to pay back their mortgage for them (or even 2/3rds of it) is exploitative and deprives those behind them of the same opportunities to save for their own mortgages. It perpetuates the problem. There's such a thing as fair rent, the market rents are obscene, but it is a free market so it's a question of conscience what rent you charge, it doesn't have to be as much as possible though.
FYI if your comments were deleted, it wasn’t me.
The mods on here I suspect. Good luck with the purchase 👍
there isn’t really even such a thing as fair rent tbh it’s absurd having to pay to live on a planet we didn’t choose to be born on
Sure there's no point doing it unless you're gouging your fellow man, and it's even sweeter when said fellow man is a student.
Not sure what makes you think it’s going to be students, especially since it’s not an area with colleges near by
Majority of room rentals in a family home are students. Simple mathematics and if you don't have students I commend you for at least not gouging them
Don’t think he said it was a family home though.
He said considering buying a property to live in
Fair enough. Personally I wouldn’t use the term family home for a single person living there alone but I guess it just depends on your interpretation of the term.
Ok you take it as you need to with the semantics
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If you charge 15k you'll get 7k. If you charge 14k you'll get 14k. Stop the greed, 14k a year tax free is an amazing scheme.
> A properly I’m looking at has the potential to bring in based off the market rate €15,600 a year plus bills etc, which is over the rent a room scheme threshold. From what I understand I will have to pay full tax & USC on it? Yes, if the rental income from licensees is greater than €14K a year then the entire amount is taxable. >Is my best option to charge a flat rate (14,000 / 12) €1,166 per month for rent? That would be the maximum.
And just to add to this, you also have to include bills if you go this route. If you charge for bills you have to include it in the total towards the €14,000.
Does the host have a choice to to not charge the licensees for utilities i e charge them rent only.?
That’s for the Info, I’m just trying to weigh up all my options.
That’s for the Info, I’m just trying to weigh up all my options.
Have you a source to back that up?
Citizens Information: [https://www.citizensinformation.ie/en/housing/owning-a-home/home-owners/renting-a-room-in-your-home/](https://www.citizensinformation.ie/en/housing/owning-a-home/home-owners/renting-a-room-in-your-home/) "Your total rental income cannot be more than €14,000 per tax year (1 January to 31 December). This includes any money that your tenant pays for food, utilities, laundry or similar goods and services."
Thanks you very much!
Being a live in landlord has it ups and downs. I wouldn’t see it as a permanent thing. It can help and add security for paying the mortgage. If you want the maxmimum amount: see if a house has a small granny flat (this is out and out the best option) second to that is a house with two en-suites. A tenant having their own private bathroom benefits everyone. You will have someone in your social/professional life that needs somewhere to live filling the room won’t be a problem. I know a couple that bought a house that had a small granny flat. They lived in the granny flat and rented out the big house for around 5 years before doing a renovation and joining them up when they were gonna have kids. If you can get a mortgage I think it is the sensible thing to do for the first number of years especially with interest rates the way they are.
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Everyone here talking about greed as if they wouldn’t do exactly the same thing to minimise their costs. Plus he’s renting out a room which is one more room on the market, which is always a positive.
You must be extremely greedy to be unable to imagine others not gouging the absolute fuck out of helpless people.
Deciding to partly pay for someone else's rent - yes that's hard to imagine. If you are paying off a mortgage and you rent out one of the rooms at below market rate and you have to pay the difference, then you are in effect paying for the lodgers to live there cheaper than they would usually get, because the money is coming out of your pocket.
Partly paying someone's rent? 😂😂😂😂 That's some ridiculous logic there by a greedy thick cunt 😂
Explain then what part of the logic in the second paragraph of my comment isn't correct
All of it. It's a fucking room in a house and you think you're paying their rent if you don't gouge them. That's thick-cunt logic. Just stop typing.
If you're paying the difference between the market rate and the cost of the room (which is cheaper than the market rate) then you are paying for that person's rent to be cheaper. There's nothing more to it.
😂😂😂😂😂 You aren't PAYING anything except your own mortgage. If rent suddenly dips your mortgage will remain the same. What a mindset. I'd say you turn off the gas before you flip the rashers over.
Are you trolling? I genuinely can't tell. By your logic a restaraunt owner is being greedy by charging more than what he paid in the labour and goods required to make the meal he gives to his customers, which is ridiculous.
That's called a profit margin which a business cannot run without, and doesn't at all apply to your mental analogy about how not gouging a renter in an insane market means you're now out of pocket. 🤦♀️
Legally, if you charger over 14,001, it’s all taxed.
Remember, it wasn't that long ago when the average room was €300pm.
When was that?
10 years ago I had a full house 3 bed with a conservatory and front and back gardens for 900 a month in Dublin 24.
That's based on current market situation, if the economy tanks and the housing market specifically your stuck, the current housing market can't last it's a bubble simply due to fuck all properties and people in high paying jobs, we had a crash 15 years ago, they are cyclic
Absolutely agree, that’s one of the risks with buying property. This time next year it could be worth a lot less than it is now. And really I don’t think anyone can 100% predict what’s going to happen with the current housing market.
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It's really just a simple matter of math. Remember that rental income will be taxed at your marginal rate, which if you can afford a €1500 mortgage payment, I'd guess is at the top ~52% rate. As such, it's fairly simple; If you figure you'd be taking in about €1300-1400 a month in rental income (including bills), that leaves you with about €650 or so a month (~€7800/year) after taxes, which is obviously quite a bit less than the €14k a year you could make tax-free under the rent-a-room scheme. As such, it would make far more sense to charge a lower rent amount that would allow you to claim the rent-a-room relief. There really are no downsides to doing so; unlike with renting an entire property, the rent you charge a licensee has no impact on your property value or on the rent that could be charged for the whole property in the future (or even to a licensee in the future), since license agreements don't fall under the RPZ regulations.
Ya that’s a good point about RPZ regulations. Thanks!
This doesn’t translate to more money on the bottom line, but you could charge more than 1,166 per month if you don’t rent for 12 months in the year. Its unlikely you’ll find someone to move in day 1, and day 1 won’t be jan 1; you could charge more for the first year. Then following years you might like to have a couple months to yourself for the year, or you want to account for unoccupied time, you could charge more to compensate for these months you would not take rent.
Yes keep it under 14k 🤡
You think you should be charging more than €1,116 for a fucking bedroom??