Student Housing Crisis, Rent-a-Room Relief15 August 2022
September will roll around and the airwaves will have an uneasy familiarity to them. There will be weary stressed parents, tearful students, and the acute student housing crisis will be headline news, as it always is at this time of the year.
The Rent-a-Room scheme is not a long-term solution to our accommodation crisis but it is an 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.
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.
Bear in mind that the Rent-a-Room relief does not apply to your child or civil partner, an employer or short-term guests (including those who book accommodation through online booking sites).
More informationis available at https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/qualifying-conditions.aspx
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 firstname.lastname@example.org
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