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Increasing Rent in RPZ

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  • 23-10-2022 4:50pm
    #1
    jrk0147
    Registered Users Posts: 2 ✭


    Hi Everyone ,

    I hope you will be able to help me.

    Due to work, I moved abroad at the start of this year. My initial plan was to move for a couple of months only, however, my circumstances changed and it looks like I won't be coming back for a while. In the past number of months I have rented my property to a family member. It's a two bed apartment in a RPZ. One of the rooms were unoccupied and the apartment was rented way below market value.

    I don't think I can claim rent-a-room relief (max.14k a year), even though the other room was sitting empty, as it wasn't my primary residence. So I assume I need to pay taxes.

    Now I know I won't be coming back (for now anyway) and my family member asked if their friend could take the other room, which I would be happy to do so. I would like to charge some money for the second room, but the overall rent still would be below market value, it would barely cover my mortgage , management fees , bills etc ( up to this point I was contributing roughly 300e a month to make it work).

    However, there could a problem from the RTB's point of view. As far as I know I cannot increase the current rent since I already rented it for a number of months at lower rate and from what I have read, my situation wouldn't fit under any of available exemptions for rent increase in the RPZ. I haven't registered the property on the RTB's website yet as I wasn't sure when / whether I would be coming back to Ireland. But in order to claim tax back from mortgage interest rates paid, the property needs to be registered on the RTB’s website.

    Of course I would like to do it all by book, pay correct taxes , have it registered on the RTB etc, but I'm not sure how to go about it.

    Any help would be greatly appreciated. 😊



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    #2
    houseyhouse
    Registered Users Posts: 692 ✭✭✭houseyhouse


    Your family member is a licensee but you don’t qualify for the tax relief because of your foreign residency. I would think you can change the licensee into a tenant and then set rent as you wish, though you should check with the rtb all the same.



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    #3
    spaceHopper
    Registered Users Posts: 3,991 ✭✭✭spaceHopper


    You are going into different therrority there. You let to your family member, they get a family discount. Their friend moves in, now they are your tenant and then your family member moves out, somebody else moves in and you are now a landlord with tenant you don't know getting family discount. And if you move back well you could be renting for two years while you do dance with the RTB and courts to get it back.

    Rent to you family member at market rate, register this rate with the RTB, give them a side letter to give discount that rate and let them take in a licensee room mate, who is their problem and when they go the friend goes to. Or you can talk about it then. Only your family member pays you the rent. The licensee never pays you. Declare the rent you receive to revenue



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