Earn €14,000 Tax Free by Renting a Room to a Student
Dundalk Institute of Technology are doing a call out to anyone who has a room to rent for the academic year from this September.
The Rent-a-Room scheme is a great option for first year students or international students as they find their bearings in the early days, or for those renting it can be a financial bonus to parents who are funding a third level student living away from home.
Eoin Clarke, Students Union President, DkIT said
“Students renting a room has worked extremely well in past for both the renters and the students, we’d love to encourage more suitable households in the locality to get involved, my team and I are more than happy to talk to anyone who has any questions on this. We currently have a portal on our DkIT Students Union website, which is like Daft for students should you have a room or property to rent”.
If you have a room in your home that you could rent to private tenants, including students, the rental income you earn will be exempt from income tax. This is called the rent-a-room relief. A self-contained unit, such as a basement flat or a converted garage attached to your home can also qualify for this relief.
Under the Rent-a-Room relief, you can currently earn €14,000 tax free. If your gross rental income does not exceed the exemption limit, you do not pay income tax or PRSI or USC.
There are criteria around the scheme such as a ‘minimum continuous letting period.’ This means the relief does not apply to income arising from letting periods which do not exceed 28 consecutive days.
If you think you could offer a room to a DkIT student, or you are a student looking for accommodation, more information is available from [email protected] or on the DkIT SU website.
