Room can be rented For up to €14,000 Tax-Free
Almost 2,500 students were accommodated by the renting of spare rooms last year.
This is a direct result of the Union of Students in Ireland campaign promoting the option.
A target of 4,000 students in digs accommodation has been set for 2019.
If you are renting a room or a number of rooms in your own home, you are entitled to something called rent-a-room relief.
This means that you are exempt from paying tax on the rental income you earn, as long as it is not more than €14,000 a year. That works out at €1,166 a month.
If the homeowner gets more in rent than €14,000 in the tax year - by imposing extra charges for the likes of meals or washing clothes - they may be liable for tax on the full amount.
You do not have to register as a landlord. This means the agreement you enter into with anyone renting will be less formal than it would be under landlord and tenant legislation, according to Taxback.com.
You must be living in the home and it must be your principal residence.
The scheme is different to income from Airbnb, which is taxable.
Despite the tax relief for the rent-a-room scheme, take-up is low, according to the student unions in Trinity College Dublin and UCD. Negative stereotypes on both sides are being blamed for this.
The student unions have encouraged homeowners to rent out spare rooms to students, to help alleviate the accommodation crisis.