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Rent a Room - Voluntary Regulatory Framework
From Department of Further and Higher Education, Research, Innovation and Science
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The Rent-a-Room Scheme permits an individual to rent a room or rooms in their home, retain their social welfare entitlements where applicable, and earn up to €14,000 in rental income free from tax liability. The scheme is open to homeowners and also primary tenants who may have a spare room in their rented property.
Further information on the Rent-a-Room scheme can be found on the Revenue website .
Owner-occupied properties fall outside the remit of the Residential Tenancies Board (RTB). The homeowner is not required to register the tenancy with the RTB and neither the homeowner nor the student are covered by the rights and protections offered under the Residential Tenancies Act.
In light of this, the Department has developed a voluntary regulatory framework and sample licence agreement to assist both homeowners/primary tenants and students who wish to avail of the scheme. This will highlight to homeowners/primary tenants the key issues to consider when renting a room to a student and similarly to students what to expect when accepting an offer of accommodation.
As the Rent-a-Room scheme falls outside the Residential Tenancy Act, a standard tenancy agreement does not apply. It is therefore recommended that a written licence agreement is established between the homeowner/primary tenant and the student in advance of taking up the offer of accommodation. A licence agreement means that a person is in the property with the homeowners’ consent or invitation. The Licensor (the homeowner or primary tenant) is the person who grants the licence (occupancy rights of the property) to the Licencee (e.g. the student).
It is important that both the homeowner/primary tenant and the student document the terms and conditions of the offer of accommodation in writing and that both parties sign the licence agreement. Both parties should retain a copy of the signed licence agreement which can then be referred to in the event of disagreement.
The licence agreement should as necessary, address and agree the following:
- Full names, addresses and contact details should be provided by the homeowner/primary tenant and student.
- The agreement should state start and end dates for access to the accommodation.
- The agreement should state the notice period to be provided by both homeowner/primary tenant and student where termination prior to the agreed end date is sought. There should be provision for immediate termination when the agreement reached is not adhered to.
- Rental rates would ideally be set at an affordable level, considerably below those being sought for private rental accommodation or purpose built student accommodation.
- The agreement should state the amount of rent (in Euros) to be paid, frequency of payment (e.g. weekly or monthly), payment method (e.g. cash or electronic transfer), and the method used to record that payment has been made.
- The agreement should state the amount of deposit to be paid up front by the student to secure the accommodation, which should be no more than one month’s rent (note the combined amount of deposit plus rent paid up front should not exceed two months’ rent).
- The agreement should state the date following termination of the licence agreement on which the deposit is to be returned by the homeowner/primary tenant to the student and should set out any circumstances (e.g. unpaid bills, damage) under which a portion of the deposit would be retained by the homeowner/primary tenant on termination of the agreement.
- The agreement should state what contribution, if any, the student will make to the payment of household and utility bills such as electricity, gas, heating, internet, refuse etc. and how the student’s portion of such bills will be allocated and collected (e.g., through a separate charge or incorporated into the overall rent rate agreed)
- It is recommended that an inventory of all furniture should be provided by the homeowner/primary tenant for exclusive use by the student such as bed, wardrobe, desk etc, noting their quality and state of repair prior to occupation.
- The agreement should specify any general rules relating to access to the accommodation including in relation to the student bringing guests to the property and also in relation to the homeowner’s/primary tenant’s access to the student’s bedroom (to be provided on foot of sufficient notice).
- Issues arising should where possible be resolved through dialogue between the homeowner/primary tenant and the student within the terms of the agreement.
- If a resolution cannot be found, a case may be taken to the Small Claims Court.
- Common claims that are heard by the Small Claims Court include disputes about unfair deposit retention, or deductions from deposit for damage to property that is over and above normal 'wear and tear'.
The framework includes a sample licence agreement which can be amended to suit the particular needs of the individual homeowner/primary tenant and student.
- If considered necessary to provide additional assurance when entering into a licence agreement, parties are free to request references.
- To avoid scams or fraudulent offers of accommodation students should, where possible, inspect the property in advance of entering into a licence agreement.
- Any cases of suspected fraud or scams should be reported to An Garda Síochána.
- Advice on comparable rent rates for similar accommodation may be available from the local Higher Education Institute.
Rent-a-Room: Voluntary Regulatory Framework
Rent-a-Room: Voluntary Regulatory Framework Guidance Note
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Rent a Room Scheme Student ‘digs’ Accommodation Sample Licence Agreement Academic Year 2023/24
Rent a Room Scheme: Student ‘digs’ Accommodation Sample Licence Agreement Academic Year 2023/24
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