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Council tenants allowed rent out rooms for up to €14,000 a year tax-free

24

Comments

  • Registered Users Posts: 209 ✭✭Lionel Fusco


    Where are all these smaller units that they can be moved to?



  • Registered Users, Registered Users 2 Posts: 7,516 ✭✭✭Outkast_IRE


    The money is tax free, but surely its reckonable income as far as the Department of Social Protection and revenue are concerned. The uptake may be more subdued when people realise they may lose entitlements



  • Registered Users, Registered Users 2 Posts: 3,812 ✭✭✭RichardAnd


    It's too expensive due to demand. Even with a price control in place, the issue of demand would not be resolved, and likely such a price control would not be effective. There are two ways to reduce rent prices; reduce the demand or increase the supply. Ideally, we would want to do both, but the state has demonstrated time and time again that it will do everything possible to increase demand whilst keeping supply at a trickle.



  • Registered Users Posts: 2,029 ✭✭✭tastyt


    Another kick in the absolute balls for anyone struggling to get up and work and cut their cloth to pay a mortgage where rates are flying up .

    But some die hards will still argue that this is someway fair and a step to alleviate our housing crisis . Will it fck. It might help the council tenant head off for 3 weeks holiday though instead of just the 2 , leaving the poor sod that’s renting off them to mind their house for them after they come home from a 10 hour day , being taxed to the Bollix .

    Talk about having priorities upside down



  • Registered Users, Registered Users 2 Posts: 4,622 ✭✭✭maninasia


    I strongly oppose council tenants getting 14k tax free.


    Tax free is tax free. It's not going to be recognised as income.


    A regular worker in private accommodation might have to be getting 20 or 30k raise or overtime pay to get the equivalent after the taxman comes for him.


    Makes me a bit sick reading it to be honest.



  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,407 CMod ✭✭✭✭Pawwed Rig


    Hate to break it to you but it is currently 15% of income or less


    From DCC website

    How is my rent calculated?

    You pay a differential rent, which means that the rent charge changes in line with household income. Under the current scheme, rent is charged at 15% of the highest earners income net of specified deductions and 15% of sub-earners income net of deductions to a maximum rent charge for each sub-earner of €21. Because your rent charge is directly linked to household income, you must inform us as soon as any changes in household income occurs. Failure to keep your income details up to date can result in backdating of the new rent charge which will cause your account to be in arrears

    How do I keep my household income details up to date?

    You should submit copies of income details to our office i.e. P60s/Employment Details Summary, payslips, Department of Social Protection payslips, etc., for all people in your home. These details should be submitted at least once per year.

    What happens if there is a change in my family size?

    You will need to seek permission from us prior to any new person moving in to your home, you also must inform us if a person in your home moves out as these additions/reductions in household size affect the rent calculation.



  • Registered Users, Registered Users 2 Posts: 3,812 ✭✭✭RichardAnd


    Hmm, just a thought. Could someone apply for rent allowance to pay the rent for this scheme?



  • Registered Users, Registered Users 2 Posts: 4,550 ✭✭✭FishOnABike


    Or the regular worker could simply let out a room in their own house under the rent a room scheme.



  • Registered Users, Registered Users 2 Posts: 4,622 ✭✭✭maninasia


    Yes but they have to PAY full whack for their own house by WORKING and SAVING for it.

    They had to pay for their house with their after tax income.

    And they probably don't get other state supports and certainly no free maintenance and appliances.


    That's the difference.



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  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,407 CMod ✭✭✭✭Pawwed Rig


    Just doing a bit of number crunching here.

    Let's say the household income for a tenancy is 50K for a family in a standard 3 bed council house in Dublin. The rent payable will be 7.5K (50kx15%)

    The cheapest place I can see on Daft is 1,850 per month so lets say the property is subsidised by 1,100 per month or 13,200 per annum.

    The property can then be sub rented for 14,000 giving a total value of 27,200 to the tenant. The tenant has an equivalent income of

    27,200/.48 = 56,666 + (original salary of) 50,000 = 106,666.

    This is if the tenant even pays the rent unlike a good portion.

    https://www.dublinlive.ie/news/dublin-news/almost-40-million-owed-dublin-25524294

    If the tenant doesn't actually pay any rent the above equivalent salary is increased to 122,291


    FML



  • Moderators, Politics Moderators Posts: 40,351 Mod ✭✭✭✭Seth Brundle


    Yis are gas.

    People bitch and moan about a shortage of affordable housing so much so that it will be an election issue.

    A proposal is made to help make more lodgings available.

    People then bitch and moan that it's not fair that "scroungers" get a free house and can rent out a room.

    Typical begrudgery!



  • Registered Users Posts: 491 ✭✭SwimClub


    Imagine being a young professional with student loans struggling to get started in Dublin and you're renting from someone on the dole. You couldn't make this stuff up.



  • Registered Users, Registered Users 2 Posts: 6,835 ✭✭✭Allinall


    Agree 100%.

    It makes not one cent of difference to any of the posters whinging about it, yet whinge they will.



  • Registered Users Posts: 209 ✭✭Lionel Fusco


    I assume you'll be applying to the council forthwith considering its so great?



  • Registered Users, Registered Users 2 Posts: 4,550 ✭✭✭FishOnABike


    The regular worker may well be receiving tax credits, child benefit, working family allowance, children receiving SUSI fees and maintenance grants. They may or may not be a council tenant, differential rent could well mean they are paying significant rent.



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  • Registered Users Posts: 460 ✭✭Coolcormack1979


    So much for the “great” Leo saying he’s for those who get up early to work to provide for themselves.that sentiment is so 2017



  • Registered Users, Registered Users 2 Posts: 6,835 ✭✭✭Allinall


    How are they any worse off as a result of this measure?



  • Registered Users Posts: 4,994 ✭✭✭c.p.w.g.w


    Doesn't that's affect the CGT on the sale of the property in the future?



  • Registered Users, Registered Users 2 Posts: 15,640 ✭✭✭✭Witcher




  • Subscribers Posts: 41,863 ✭✭✭✭sydthebeat


    Why is everyone assuming someone renting a council house is on the dole?

    The closest council estate to me, that I'm very familiar with, has only about 25% of those who are able to work, not working. Everyone else is either old or on disability



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  • Registered Users, Registered Users 2 Posts: 3,812 ✭✭✭RichardAnd


    With respect, I think that you are not understanding why people are upset. These houses are paid for and maintained by taxes and borrowing, both of which place a cost onto the shoulders of taxpayers. The tenants of the social houses are paying a pittance of rent to live in a house or an apartment that is simply beyond the means of many of the said taxpayers who are paying the bill. Now, the state is offering the tenants of the social houses a chance to make money off the people who are already paying to keep them in accommodation that they themselves cannot afford.

    Put simply, many here take umbrage at this because it is an ethically bankrupt proposal.



  • Moderators, Politics Moderators Posts: 40,351 Mod ✭✭✭✭Seth Brundle


    No I got it alright - it's straight old-fashioned begrudgery as you've clearly demonstrated for us all!



  • Registered Users, Registered Users 2 Posts: 15,640 ✭✭✭✭Witcher


    There would be some on here happy to force local authority tenants to wear a hairshirt for daring to avail of subsidised housing.



  • Moderators, Category Moderators, Education Moderators Posts: 27,271 CMod ✭✭✭✭spurious


    Subsidised housing is fine, but you would think maybe two generations later people might have stayed on long enough in school/accessed college or whatever to be over the income limits.

    Unless there was a drawback in doing so...



  • Registered Users, Registered Users 2 Posts: 3,812 ✭✭✭RichardAnd


    If that is what you wish to believe, then so be it.



  • Registered Users, Registered Users 2 Posts: 15,640 ✭✭✭✭Witcher


    Oh great more blanket statements..because it doesn't happen in every case it doesn't happen in any.



  • Registered Users, Registered Users 2 Posts: 10,448 ✭✭✭✭Marcusm


    The flip side of it is that a number of these tenants will also be upset that there are no “local” houses available for their adult children and their families.



  • Registered Users, Registered Users 2 Posts: 3,784 ✭✭✭...Ghost...


    Stay Free



  • Registered Users, Registered Users 2 Posts: 14,209 ✭✭✭✭Danzy


    The "woe is me, me poor sore toe" is off the charts.


    I'm self employed, one has to be an optimist when you are the show on the road. Self pity is never going to put a penny in your pocket.


    As you say, people can't complain about rent cost and shortage and then complain about a measure to alleviate that. They chose to though, self pity.



  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,407 CMod ✭✭✭✭Pawwed Rig


    The people who do 1 do not necessarily do the other nor are the 2 positions mutually exclusive. Call it begrudgery if you like but it is a discussion forum so why not put forward a counterpoint rather than just denigrating everyone you disagree with? That is not like you Seth. Do you think is it a good idea? Or a bad one?



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  • Registered Users, Registered Users 2 Posts: 13,764 ✭✭✭✭Geuze


    Council rented houses are typically a lifetime tenancy.

    The tenant could win the lotto, triple their income, etc., and remain paying rent in the LA house.

    The rent will increase, as the rents are typically based on incomes.

    There is a TD living in social housing.



  • Registered Users Posts: 373 ✭✭markw7


    Shows how much to shite this site has gone when a politics mod sticks their fingers in ears rather than actually counter a response made in good faith.



  • Registered Users, Registered Users 2 Posts: 3,812 ✭✭✭RichardAnd


    Look at the list of proscribed topics of conversation on the main property thread. It's not hard to understand why we're in such a mess when the limits of conversation are so narrow.



  • Registered Users Posts: 491 ✭✭SwimClub


    No, it's about perverse incentives. It becomes even more attractive to stay in a part time/low paid job/no job/lie about your relationship status, to get a house mostly paid for you as now you get up to 14k tax free thrown in to sweeten the deal.

    As usual they never think about consequences over and above quick fixes for whatever the crisis of the day topic is.



  • Registered Users, Registered Users 2 Posts: 1,786 ✭✭✭DownByTheGarden


    Maybe they could if they could afford a house.



  • Registered Users, Registered Users 2 Posts: 15,608 ✭✭✭✭elperello


    Some good points made about right sizing public housing by providing apartments etc.

    That will take time to achieve and we are in the middle of a housing crisis.

    In the meantime this proposal while not perfect is worth consideration.

    We need living space now, not next year or the year after.



  • Registered Users, Registered Users 2 Posts: 1,786 ✭✭✭DownByTheGarden


    BAck when I was young the scam was that s single mother would get the council house and then the boyfriend/husband would move in. I remember the whole estate was like that.

    The next one will be that the secret boyfriend/girlfriend rents a room and pays 14k a month while claining rent allowance. I can picture the scamsters already trying to come up with the best method.



  • Moderators, Politics Moderators Posts: 40,351 Mod ✭✭✭✭Seth Brundle


    Unlike many others poisting in this thread, I think I would like to hear the actual details of the proposal (and how it will affect those who currently occupy social housing) before I get worked up.

    However, on the face of it, it does have the potential to place a number of people in accommodation, which in turn should help lower overall demand for accommodation which should benefit everyone.

    Nonetheless, the hysterics from some on here who are pissed off is pitiful. Some would like to see others less well off suffer just to ensure that they don't benefit at all from our welfare setup.


    How were my fingers in my ears? It was quite clear what point @RichardAnd was making. They object to people in social housing "paying a pittance of rent to live in a house or an apartment that is simply beyond the means of many of the said taxpayers who are paying the bill" and who are now possibly going to be able to avail of a scheme that will allow them to make up to 14k tax free by renting out a room. What they are ignoring is that this, although tax free is still regarded by Revenue as income and is currently provided for via your income tax return. This in turn may affect the amount of rent that the council will charge for the property (it all remains to be seen what the local authorities will do).



  • Registered Users Posts: 491 ✭✭SwimClub


    That scam is still going strong, I was recently given anecdotal evidence from a friend with a socially housed 'unmarried mother' neighbour with kids in a new development. Brand new house and both in good jobs, she was just early stage career in a profession with good salary progression, he worked in construction but wasn't part of the means test as she's an 'unmarried mother'.



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  • Registered Users, Registered Users 2 Posts: 15,640 ✭✭✭✭Witcher


    How does this friend of yours know the couple's situation re: the means test?



  • Registered Users, Registered Users 2 Posts: 1,092 ✭✭✭DubCount


    I agree with a lot of that. However we are talking about council housing here. These are properties that belong to the state that are being provided for very low contributions from the tenants. If there is excess capacity, that should be used - but not by enriching social tenants. If there is excess capacity in social housing, the state should be filling that and collecting any rents for the benefit of the state.

    There is something uncomfortable about Joe and Jane Taxpayer providing social housing and then allowing the recipients of that social housing charge rents tax free to other citizens who may have too high an income to be eligible for social housing.



  • Registered Users, Registered Users 2 Posts: 3,784 ✭✭✭...Ghost...


    You would be amazed at the amount of social tenants who brag and tell others how they played the system.

    Stay Free



  • Registered Users Posts: 277 ✭✭Guildenstern


    Always ignored by the lefties as well but not that uncommon at all, and entirely familiar to those with a working class background. A fair few of the neighbours were doing this where we grew up. A scam indeed.

    Not begrudgery at all. Social housing is now becoming a cherished resort. We need audits of who is living there. Everyone should pay their fair share.



  • Registered Users Posts: 491 ✭✭SwimClub


    That's exactly how he heard, came up when they were talking about marriage and from what he said they saw little wrong with it, just maximising the system.



  • Registered Users, Registered Users 2 Posts: 15,608 ✭✭✭✭elperello


    I take your point but how would the State manage a system like that ?

    Would some official decide who would be sent around to share the family home of people in social housing ?

    A stranger deciding which stranger you must share with.

    By the time all the objections were sorted out the game wouldn't be worth the candle.



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  • Registered Users Posts: 1,216 ✭✭✭riddles


    The renter of said rooms will need to ensure the alarm or shower doesn't wake the landlord \ landlady in this case as they depart for work!



  • Registered Users, Registered Users 2 Posts: 11,392 ✭✭✭✭Furze99


    It is absolutely an ethically bankrupt proposal.

    Although I don't much like the alternatives, it's the likes of this that makes you want to see this government out on it's ear.

    Re elect a new one and this time, maybe whatever coalition is thrown up, they'll be servants of the public.



  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,407 CMod ✭✭✭✭Pawwed Rig


    You don't have to get worked up to discuss something. I post in many threads on a daily basis without getting in any way worked up.

    Plenty of things have the potential to put people in accommodation but are not allowed, Back garden apartments for example would be one but you would not get planning for them. This was put forward by Mattie McGrath recently.

    You are correct that it has potential to place some people (I wouldn't say too many) in accommodation but it would be a very precarious arrangement given the nature of rent a room scheme. Also as others have posted it would be wide open to fraudulent claims, profiteering and coercion.

    From an optical perspective it would be obscene where a tax payer that cannot afford their own property has to house share with someone they are subsidising via their direct tax payment and further subsidising now via rental payment essentially enriching council tenants. From my example above say the guy on 50K salary with a council house got a tenant of the same income. Can you not see the inequity there where one suddenly earns an effective income of more than twice his counterpart and has all of the power in the LL/licensee relationship? The basic tenets of a republic are fairness and equity. Doing something like what is suggested is wrong on so many levels and is a further kick in the nuts to those who actually worked their holes off saving and saving for somewhere to live. It will further incentivise doing as little as possible in life.



  • Registered Users, Registered Users 2 Posts: 4,622 ✭✭✭maninasia


    Max they ever pay is 15% of the household income. Its 12% of the principal earner's income and I think most just pay that. 12% of the NET and DECLARED INCOME.

    Easy street. Great deal.


    And now 14,000 a year up for grabs tax free, no increase in rent.



  • Registered Users, Registered Users 2 Posts: 7,603 ✭✭✭MrMusician18


    Interestingly that means that 28k council houses are currently under utilised. In other words if we moved people around into accommodation that was sized to their actual need, we could free up a lot of capacity.

    The issue here though is cultural. People in council housing expect that they have permanent tenure and that they cannot be moved. That mindset should never have been allowed to form.



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