Space: 5 people in 4 bed semi with extension?

serotonin_sam

As my mortgage is causing me pain, I'm looking at ways of dealing with it. I have a 4 bed semi and 3 lads renting rooms. Theres enough room on the site to put up an extension - and therefore, another bedroom.


As the kitchen & living room were originally designed based on the four bedrooms, would things be too cramped? Anyone rented a room in a semi-D with 4 other people. Is it too cramped or workable?

BC

It really depends on the size of the rooms in the house...

serotonin_sam

BC wrote:

It really depends on the size of the rooms in the house...

They are typical of what you get in any of the estates built in the last 5 years. 2 'Double' Rooms ( theyre only double if you get the bed size in between single and double), an en-suite (have a kingsize in it - assumed it would fit but it doesnt all too well) and a box room (probably better than most box rooms as its got good deep storage area over stairs).

The_Conductor

serotonin_sam wrote:

As my mortgage is causing me pain, I'm looking at ways of dealing with it. I have a 4 bed semi and 3 lads renting rooms. Theres enough room on the site to put up an extension - and therefore, another bedroom.


As the kitchen & living room were originally designed based on the four bedrooms, would things be too cramped? Anyone rented a room in a semi-D with 4 other people. Is it too cramped or workable?

You might not find getting planning permission for an extension on a new semi all that easy- there are a lot of rules regarding the amount of garden (unbuilt-on space) that has to be available per bedroom.

There are also the tax implications- I am guessing that you are not using the rent-a-room scheme (correct me if I'm wrong)- as you are resident in the house yourself all of the income is taxable. It might be more worth your while to manage your current tenants so that you stay under the threshold and minimise your tax hit- while maximising the living situation for yourself.

Keep us updated about your extension plans.....

Victor

I suspect the extra room would not pay for itself, if you are depending on the rent alone.

But do look up the Rent-a-Room scheme on www.revenue.ie - About 7,000 euros tax free per year in rent (including all miscellaneous charges).

serotonin_sam

Lads,

rent is coming by way of cash only.

Silverfish

I shared a 4 bed house with 3 other people, and as we only had a living room / kitchen as communal space, it did get a bit cramped, I can't imagine what it would have been like with an extra person.

Maybe you should ask your tenants what they think.

Victor

serotonin_sam wrote:

rent is coming by way of cash only.

And?

Are you suggesting you aren't paying tax? Well you don't pay any tax under the Rent-a-Room scheme.

Rent-a-Room Relief

Where a room (or rooms) in a person’s sole or main residence is (are) let as residential accommodation, gross annual rental income of up to €7,620 is exempt from tax. Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected. For more information see Leaflet IT 70.

You may however, at some point in the future, have to explain to the Revenue how you were able to afford your payments.

serotonin_sam

Victor wrote:

You may however, at some point in the future, have to explain to the Revenue how you were able to afford your payments.

I can justify that based on struggling along (as i am currently).

The_Conductor

serotonin_sam wrote:

Lads,

rent is coming by way of cash only.

Be very very careful.
Any one of your tenants, including those who may have long left your abode, are entitled to claim rent relief for any period over the last 5 years. They do *not* have to have any information other than your name and address. You are seriously leaving yourself exposed to being caught by the Revenue Commissioners big-time. If your rental income is anywhere near the Euro 7620 mark- make sure you do not go over the threshold. If its well over- get yourself a good accountant- and organise a retrospective tax return. You may not get pulled up on this for ages- or it may happen tomorrow- but you will eventually have to explain yourself when someone tries to claim rental-relief........

The_Conductor

serotonin_sam wrote:

I can justify that based on struggling along (as i am currently).

Most people are struggling along- interest rates are continuing to climb- its not easy for anyone. Stating that you are struggling along is not a justification.

serotonin_sam

smccarrick wrote:

Most people are struggling along- interest rates are continuing to climb- its not easy for anyone. Stating that you are struggling along is not a justification.

This is not a moral justification - nor am I interested in getting into that aspect of things. Its in response to victors point on being able to demonstrate how the mortgage has been paid.

smccarrick wrote:

They do *not* have to have any information other than your name and address. You are seriously leaving yourself exposed to being caught by the Revenue Commissioners big-time.

They need to provide Revenue with the Landlords pps. Furthermore, there are no receipts to prove the level of rent paid or the date tenancy commenced.

The_Conductor

serotonin_sam wrote:

They need to provide Revenue with the Landlords pps. Furthermore, there are no receipts to prove the level of rent paid or the date tenancy commenced.

FYI- tenants do not have to provide Revenue Commissioners with their landlords PPS number or receipts to prove the level of rent paid. They are free to claim Rental Relief without these documents. On receipt of their claim the Revenue Commissioners will check their files and investigate. There is a section in the audit unit in Dublin Castle who deal with this.

serotonin_sam

smccarrick wrote:

They are free to claim Rental Relief without these documents.

Fair enough - they can submit the app without this info although it is requested.

smccarrick wrote:

On receipt of their claim the Revenue Commissioners will check their files and investigate. There is a section in the audit unit in Dublin Castle who deal with this.

They can investigate all they like if it gets to that stage. Bottom line is that it won't be possible to prove the level of rent received is above what I have declared.

The_Conductor

serotonin_sam wrote:

They can investigate all they like if it gets to that stage. Bottom line is that it won't be possible to prove the level of rent received is above what I have declared.

Fair enough.
You are taking one hell of a risk, it really would not be worth it if you got caught.

Vis- your original question, I would advise that you consult with your local Co.co., as there are guidelines which must be adhered to, particularly regarding the amount of unbuilt space per bedroom (this is before neighbours objections etc enter the equation). Make sure your proposition complies with current planning law, before investing a lot of time and effort in it.