Rent allowance if renting from family member

aido79

Is it possible for someone to claim rent allowance if renting from a family member?

Gatling

Generally speaking no

aido79

Gatling wrote: »

Generally speaking no

Any idea why? Is it assessed on a case by case basis?

Eric Cartman

aido79 wrote: »

Any idea why? Is it assessed on a case by case basis?

if your relative is not a parent, spouse or sibling and the property isnt your family home , register the tenancy with the prtb and pay all the taxes due with regards to the tenancy then I cant see it being a problem.

MouseTail

As long as there is a history of the house being let it is possible.

aido79

Eric Cartman wrote: »

if your relative is not a parent, spouse or sibling and the property isnt your family home , register the tenancy with the prtb and pay all the taxes due with regards to the tenancy then I cant see it being a problem.

Tenant will be a sibling.I live abroad and will be registering as a landlord and be tax compliant. The house is a new build. Sibling is already in receipt of rent allowance and I'd prefer to have a tenant I can trust living in the house.

CIARAN_BOYLE

aido79 wrote: »

Tenant will be a sibling.I live abroad and will be registering as a landlord and be tax compliant. The house is a new build. Sibling is already in receipt of rent allowance and I'd prefer to have a tenant I can trust living in the house.

You need to ptove that this is essentially an arms length transaction in order to maintain rent allowance. A history of the property being let is a common way of doing this.

aido79

CIARAN_BOYLE wrote: »

You need to ptove that this is essentially an arms length transaction in order to maintain rent allowance. A history of the property being let is a common way of doing this.

What do you mean an arms length transaction? The house is a new build so there is no letting history.

Eric Cartman

aido79 wrote: »

What do you mean an arms length transaction? The house is a new build so there is no letting history.

there basically needs to be evidence that its a completely tenant - landlord type scenario, not a family member lending a helping hand, with no rental history and them being a sibling this would cause an issue, if you have the same second name id expect the social to turn that application down right off the bat.

things like renting the house at below market rate for the area, having any bills in your name for the house , you staying in the property or keeping any of your things in the property or having your post sent there would not be considered arms reach. In order to do this you basically have to pretend your sibling is a complete stranger and not help them in any way above and beyond what you would do for any other random tenant.

aido79

Eric Cartman wrote: »

there basically needs to be evidence that its a completely tenant - landlord type scenario, not a family member lending a helping hand, with no rental history and them being a sibling this would cause an issue, if you have the same second name id expect the social to turn that application down right off the bat.

things like renting the house at below market rate for the area, having any bills in your name for the house , you staying in the property or keeping any of your things in the property or having your post sent there would not be considered arms reach. In order to do this you basically have to pretend your sibling is a complete stranger and not help them in any way above and beyond what you would do for any other random tenant.

Would a lease be enough to prove it is a legitimate tenancy?
I live in Australia so wouldn't be staying there and I have no need to store anything in the house. None of the bills would be in my name. House would also be rented for market rate.

Stheno

aido79 wrote: »

Would a lease be enough to prove it is a legitimate tenancy?
I live in Australia so wouldn't be staying there and I have no need to store anything in the house. None of the bills would be in my name. House would also be rented for market rate.

Have you checked that rent supplement rates cover the market rate?

Also as you are abroad your tenant will be required to deduct withholding tax from the rent unless you have an agent acting on your behalf

aido79

Stheno wrote: »

Have you checked that rent supplement rates cover the market rate?

Also as you are abroad your tenant will be required to deduct withholding tax from the rent unless you have an agent acting on your behalf

Is there a set market rate for each area or can I use daft.ie as a reference?
I am aware of my tax liabilities.

MouseTail

aido79 wrote: »

Would a lease be enough to prove it is a legitimate tenancy?
I live in Australia so wouldn't be staying there and I have no need to store anything in the house. None of the bills would be in my name. House would also be rented for market rate.

It really does depend on the Case Officer. The fact the house hasn't been rented before may be enough for them to claim it is not a bona fide tenancy.
Certainly a lease will be needed and PRTB registration.

Gatling

aido79 wrote: »

Is there a set market rate for each area or can I use daft.ie as a reference?
I am aware of my tax liabilities.

See here for reference

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/rent_supplement.html

Eric Cartman

aido79 wrote: »

Is there a set market rate for each area or can I use daft.ie as a reference?
I am aware of my tax liabilities.

rule of thumb is find 3 properties within 1-2km of your house, not in bad estates, with the same number of bedrooms and take the average rent of them all.

Stheno

aido79 wrote: »

Is there a set market rate for each area or can I use daft.ie as a reference?
I am aware of my tax liabilities.

Yes there are limits as to what will qualify as acceptable rent under the scheme

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/rent_supplement.html

You can find the rates

aido79

Thanks for the replies. My sister is going to get in touch with her case officer to find out more.

irishgirl19

What's the case if you are renting from a family member for 2 years before claiming due to a change in circumstances