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Dundalk Institute of Technology urge local homeowners to Rent-a-Room to a student and benefit from tax relief



Home owners in Dundalk with an extra bedroom are being asked to consider providing accommodation for students attending Dundalk Institute of Technology through the ‘Rent-A-Room’ scheme.

The housing crisis is making the headlines on a daily basis and the shortage of houses to rent is going to make the task of finding somewhere to live even more of a challenge for students as they prepare for the new college year in September.

While the Rent-a-Room scheme is not a long-term solution to the accommodation crisis it is an option for first year students or international students as they find their bearings in the early days. For parents who are funding a third level student living away from home and who have a spare room, it can help offset the cost of paying for their accommodation elsewhere.

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.

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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 own  child or civil partner, an employer or short-term guests (including those who book accommodation through online booking sites).

More information from 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 suoffice@dkit.ie