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Lease a house then rent out rooms- problems?

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  • 13-11-2016 10:02pm
    #1
    kaji
    Registered Users Posts: 646 ✭✭✭


    If I took a 1 year lease on a house (to live in) and advertise other rooms in the house (for people to share the house with me), where does that leave me with regards the law? Do I have to provide them with a rentbook? Do I have to declare money that I get from them as extra income, even if I wouldn't be making a profit?


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    #2
    Pkiernan
    Registered Users Posts: 4,310 ✭✭✭Pkiernan


    kaji wrote: »
    If I took a 1 year lease on a house (to live in) and advertise other rooms in the house (for people to share the house with me), where does that leave me with regards the law? Do I have to provide them with a rentbook? Do I have to declare money that I get from them as extra income, even if I wouldn't be making a profit?

    No.
    Yes.
    You are making a profit if you charge them rent.


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    #3
    Johnnyhpipe
    Closed Accounts Posts: 748 ✭✭✭Johnnyhpipe


    There's most likely a 'sub-letting' clause in your lease agreement which prohibits this


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    #4
    Eric Cartman
    Registered Users Posts: 26,280 ✭✭✭✭Eric Cartman


    get the other housemates names on the lease as they come in , you can still keep the original direct debit etc… to landlord and just take the money from the others, if everyone is on the lease then no tax forms or other craic.


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    #5
    kaji
    Registered Users Posts: 646 ✭✭✭kaji


    If I just put myself down on the lease and they pay money into my account and that money goes straight to the landlord each month, do I really need to deal with tax and forms?


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    #6
    Mrs OBumble
    Registered Users Posts: 25,965 ✭✭✭✭Mrs OBumble


    Pkiernan wrote: »
    No.
    Yes.
    You are making a profit if you charge them rent.

    No you're not, because you're paying the same amount out to the LL in rent for those rooms as you are taking in.

    OP, just make sure that the total you take from the sub-leasees is less than 14k. You'll need to declare the income, but in that case it's very clear that you've no tax to pay.


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    #7
    davindub
    Registered Users Posts: 1,447 ✭✭✭davindub


    kaji wrote: »
    If I just put myself down on the lease and they pay money into my account and that money goes straight to the landlord each month, do I really need to deal with tax and forms?

    Its not an income so you are not liable for income tax. More like you are all sharing the expenses of living there.

    If the money you take in is greater than the money you are paying to the LL, then its an income, rent a room relief could be used in theory, but costs are not deductible so if the rent you collect exceeds 12k before the end of this year or 14k you pay income tax under the rental property schedule.


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    #8
    kaji
    Registered Users Posts: 646 ✭✭✭kaji


    OP here, thanks for all the helpful responses. The rent I would be taking off the 2 other housemates would be roughly 800 in total each month. And that would be going straight to the landlord with my own rent money added to it.


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