Rent a Room Relief

My landlord has decided to sell the house where I currently live. I now find myself being potentially homeless for Christmas. If a private homeowner rents a room to me will they have to pay tax on this rental income? I believe that there is no tax on rental income up to a certain limit. Is this correct?

If a private homeowner decides to rent a room (or rooms) in their home to private tenants, the rental income earned will be exempt from income tax, provided this income from rent and related services does not exceed €14,000 in a tax year.

The relief applies only to residential tenancies, not to short-term guest arrangements. The occupants must be using the room on a long-term basis. For example, renting a room to a student for the academic year is covered, but taking in guests for short breaks is not.

Homeowners will NOT qualify for this tax relief if any of the following apply:

  1. Income from rent and related services exceeds €14,000 in a tax year.
  2. Renting a room to a son or daughter.
  1. Renting a room to short-term guests.

Any such rental accommodation provided is essentially a room in a private home and is therefore not covered by landlord and tenant legislation. Tenants will therefore be staying under a Licensee Agreement, not a Tenancy Agreement.

Any such Licensee Agreement should set out terms in writing to include such details as the rent payable and the manner in which it is payable i.e. by cash, cheque etc; the term of the tenancy; notice periods required should either party wish to end the arrangement; arrangements for payment of utility bills; rules regarding guests etc. This Agreement should be signed by both parties and a copy retained by each.



Oak House,
39-41 Mardyke Street,
Co. Westmeath
N37 TA44

Tel: (090) 647 8433


9 Gray Office Park,
Galway Retail Park,
Headford Road,
Galway City
H91 WC1P

Tel: (091) 511 421


Upper Ormond Quay,
Dublin 7

Tel: (090) 647 8433


Main Street,
Co. Westmeath
N37 EW70

Tel: (090) 648 2090


Main Street,
Co. Longford
N39 C8Y7

Tel: (043) 332 1200

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