Digs – getting money for your spare rooms

Galway is in a housing crisis, and it is at its worst when our student population returns for the start of term and struggle to get accommodation. At the same time, homeowners with spare rooms may want some extra cash during term time to help pay the mortgage but are worried about tax or paperwork implications when it is actually tax-free and relatively straightforward.

We want to do our bit for Galway by getting more rooms on the market – this will benefit students and homeowners. Please have a look at this simple 3-step guide below and get in touch if we can help you to get your room on the market (e.g., with Daft posting, drafting a lodger agreement, etc.).

There are three steps to getting money for your spare room:

  1. Decide whether having a lodger in your home is right for you and your family
  2. Take photos of the room and post it on www.daft.ie
  3. Interview people you like and make a written agreement

 

1. Decide whether having a lodger in your home is right for you

If you have never had lodgers in your home before, it can be a big decision. There is some good discussion of the pros and cons at http://www.lodgersite.com/. If you are worried about the tax or paperwork implications, it is actually quite easy. The income is tax-free for most lodger situations (up to 12,000 euros per year tax-free – most digs in Galway are between 300-600 euros / month) and you don’t need to register with the PRTB (More on this here).

 

2. Take photos of the room and post it on www.daft.ie

Once you have decided to go for it, take some nice photos of the room and house and post it to Daft (it’s Free). The link is here.

 

3. Interview people you like and make a written agreement

If your price is reasonable, you should have lodgers e-mailing and phoning to see the room. When they come, make sure you ask enough good questions to be comfortable the person is right to live in your home. As a starter, there are some questions here. While you don’t need a legal agreement, and you are entitled to ask the tenant to leave with “reasonable notice”, it is always worth having a written agreement with the tenant and use this as an opportunity to discuss the expectations both of you have for how the arrangement will work.

We hope this has been helpful. If you want to discuss this further, or need our help to get you set up, please give us a call on 083-4556957 and one of our volunteers can help you get set up!