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Granny flats renting

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    #32
    Chiparus
    Registered Users Posts: 2,270 ✭✭✭Chiparus


    Would it be easier to rent it out using the rent a room scheme for tax purposes?


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    #33
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Chiparus wrote: »
    Would it be easier to rent it out using the rent a room scheme for tax purposes?

    That's the whole idea really, a granny flat is the ideal scenario. You don't really share your house with the person renting it (the connecting door can be locked between the house and flat) but at the same time you are fully entitled to earn up to 14k per annum tax free.

    I saw a house for sale a while back with a very nice two bed apartment built on but still connected to the main house (also had its own seperate entrance). It was in a very sought after area and could easily have gotten say 900 a month for it in the current climate. That's all tax free and would have covered roughly 3/4 of the mortgage on the house. Absolute peach of a deal for the buyer (if they went down that route). I always keep an eye out for houses with a self contained unit under the same roof for this reason.


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    #34
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,382 Mod ✭✭✭✭Gumbo


    handlemaster wrote: »
    Therefore only suitable for cash buyers

    correct. If there's no link then it's not a granny flat so an unauthorized structure.


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    #35
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,382 Mod ✭✭✭✭Gumbo


    Maggie Prickly Stretcher wrote: »
    That's the whole idea really, a granny flat is the ideal scenario. You don't really share your house with the person renting it (the connecting door can be locked between the house and flat) but at the same time you are fully entitled to earn up to 14k per annum tax free.

    I saw a house for sale a while back with a very nice two bed apartment built on but still connected to the main house (also had its own seperate entrance). It was in a very sought after area and could easily have gotten say 900 a month for it in the current climate. That's all tax free and would have covered roughly 3/4 of the mortgage on the house. Absolute peach of a deal for the buyer (if they went down that route). I always keep an eye out for houses with a self contained unit under the same roof for this reason.

    Was this house in Raheny/Artane?


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    #36
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    kceire wrote: »
    Was this house in Raheny/Artane?

    No was in Galway city, was a good while back too so any link is gone. Came across the ad by chance wasn't somewhere I was looking at for myself but know the area it was and it's a very popular area close.


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    #37
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    76544567 wrote: »
    handlemaster wrote: »
    If there is not a door is that illegal and un mortgagable then ?


    No. There are remedies to any sale issue.
    The solicitors will work it out between them.


    If there is ment to be a connection between the two and there isnt. I dont know what the solicitors could do


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    #38
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Maggie Prickly Stretcher wrote: »
    I can see there being difficulty in planning if renting a granny flat that is seperate to the house itself but I cannot see how planning can stop you renting a granny flat that is part of the main house, which it is if it's connected by a internal door. It's no different to renting a bedroom as it's under the same roof and you can walk freely to and from it internally.

    I've seen houses for sale with 2 bed apartments build on but connected internally (and with seperate entrance) and the sales agent heavily promoting the fact it can be rented under the rent a room scheme and achieve x amount per month so I can't see there being a planning issue as it's just an extension of the main house (and sales agents tend to hide planning issues in their ads also).

    The tax position is stand alone and doesn't mean there aren't planning issues. Agents often push nonsense to distract from some other drawback.


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    #39
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    4ensic15 wrote: »
    The tax position is stand alone and doesn't mean there aren't planning issues. Agents often push nonsense to distract from some other drawback.

    The only planning issue could be with the actual structure there is no requirement for planning to rent a room in your home which is all renting a granny flat is.


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    #40
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Maggie Prickly Stretcher wrote: »
    The only planning issue could be with the actual structure there is no requirement for planning to rent a room in your home which is all renting a granny flat is.

    There is planning required to have a second dwelling in your home, which is all renting a granny flat is. The fact the tax man deals with it under rent a room is irrelevant.


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    #41
    BryanF
    Moderators, Home & Garden Moderators Posts: 10,140 Mod ✭✭✭✭BryanF


    Maggie Prickly Stretcher wrote: »
    As another poster said ... I see no reason planning would even be required to rent the granny flat.. .
    this is my last post on the matter.
    BryanF wrote: »
    Planning is required for a granny flat.

    Planning permission will typically stipulate that the accommodation must be connected by internal door, and must revert to be part of the main dwelling once it's no longer used by relative


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    #42
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    4ensic15 wrote: »
    There is planning required to have a second dwelling in your home, which is all renting a granny flat is. The fact the tax man deals with it under rent a room is irrelevant.

    It's not a seperate dwelling, it's just another room in the house.
    BryanF wrote: »
    this is my last post on the matter.

    As above it is always part of the main dwelling, the internal door ensures this.


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    #43
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,382 Mod ✭✭✭✭Gumbo


    Maggie Prickly Stretcher wrote: »
    It's not a seperate dwelling, it's just another room in the house.



    As above it is always part of the main dwelling, the internal door ensures this.

    The planning act and the residential tenancies act operate separately here.
    While you could rent out a granny flat to joe soap and have a lease or rental agreement that the RTA and PRTB are happy with, you are still breaching the planning act by Separating the dwelling by lease and this wording is stated in the grant of permission.

    Up to the home owner if they want to take the chance I suppose.


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    #44
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    kceire wrote: »
    The planning act and the residential tenancies act operate separately here.
    While you could rent out a granny flat to joe soap and have a lease or rental agreement that the RTA and PRTB are happy with, you are still breaching the planning act by Separating the dwelling by lease and this wording is stated in the grant of permission.

    Up to the home owner if they want to take the chance I suppose.

    If it's rented out under the rent a room scheme though there won't be any rental agreement, the person is just renting a room with a bathroom (which is normal with ensuites) and a small kitchen. The door is there to the main house so it's not a seperate dwelling. Not really seeing how it can be considered a seperate dwelling any more than a bedroom with ensuite down one end of a house.


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    #45
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Mod note

    The OP asked if it was legal to rent it out. No reference to rent a room . Please don't derail the thread. As people have pointed out the key here is planning permission.


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    #46
    76544567
    Registered Users Posts: 465 ✭✭76544567


    handlemaster wrote: »
    If there is ment to be a connection between the two and there isnt. I dont know what the solicitors could do


    Same situation as the roof on the shed i was talking about i suppose.
    Solicitors work stuff out like for property sales every day. Out of all transactions I've been involved with, more were not straightforward than were. All were fine in the end though.


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