I rented out a house to a couple with one child. They have now separated and the single mother will no longer be able to meet the rental payments even though she is subsidised by the county council.
There is a spare room in the property. With the tenant’s agreement, can I rent the room under the ARP? I don’t live on the property.
Mr E.S.
* Your tenant clearly finds themselves in a very difficult situation. They were, if not comfortable, at least able to pay the rent on this property as a couple but now that they have split, the rent is too much of a challenge to meet for the mother who remains in the home with her child.
Given the current crisis in the rental sector, that can only add significant stress to her life and if the child is already in school, it will only be exacerbated.
Her choices are limited: find a way of earning more money; move to other accommodation that she can afford, most likely in a different area; move home, if possible; or come to some financial arrangement with you, the landlord.
I had not come across the ARP – or accommodation recognition payment – before in reader queries. It is essentially a sum of money provided in return for agreeing to accommodate one or more refugees from Ukraine.
But it does come with some conditions that may make it impractical in this situation.
First up, the money. The payment is €800 a month and is not subject to income tax, PRSI or the universal social charge. It is also not taken into account in any welfare payment means test. The payment is per property, not per refugee.
Given that you would normally be paying those taxes on net rental income, the payment is worth the same as almost €1,540 a month in rental income on this property would be. That means there is a good chance it should bridge the gap between what your tenant had originally agreed to pay in their rental agreement and what they can now pay.
But what about those other conditions?
First up, provided you get the agreement of the tenant, I do not see anything that says you cannot offer the room to a Ukrainian refugee or refugees while your existing tenant and her child remain in the house. For what it is worth, with your agreement, the tenant could be the person making the offer (and receiving the payment) to help them meet their rent bill.
You must commit for a minimum of six months: if you cannot, the payment is not available to you. If the refugee chooses to move on in that six months, the payment will not be clawed back (though you will certainly have to notify the Department of Social Protection). If, however, you force the refugee to leave within that window, the money will be clawed back.
Both sides also need to be clear that, unlike with your tenant, the offer of accommodation does not and cannot be covered by a rental agreement. If it is, you do not qualify for the payment. The payment covers the costs of housing the refugees though it will not be affected if they contribute to food and utility costs.
The fact that you are not in the property does not affect your ability to access the ARP but you do need to get the agreement of your tenant – in writing, I would suggest for the protection of both sides – unless they are the ones applying for the payment, in which case, they will need your agreement under the rental contract.
The more onerous conditions surround the standard of the accommodation and the facilities available to the refugee. These cover a wide range of areas – the structural condition of the property, sanitary, waste and heating facilities including rules around gas, oil and electricity systems, food prep and cooking areas, ventilation, lighting and fire safety. The details are listed in the Civil Law (Miscellaneous Provisions) Act 2022 (Part 2) (Eligible Dwelling Standards) Regulations 2022 with an easier-to-read summary available here.
A lot of it is common sense but you still need to be sure everything is in proper working order and that there are no infestations on site. There are also specific safety requirements that might require additional investment.
The other thing to be aware of is that, as of now, the scheme is due to end in March of next year. Whether that means all payments cease immediately or on a phased basis, or whether it means they will not entertain any new arrangements, is unclear.
You say that your tenant is being subsidised by the county council. I assume that means she is in receipt of rent supplement. I don’t see anything that says this would disbar you from applying for the ARP.
But you, or your tenant, might want to consider an option.
At €800 a month, the ARP is worth €9,600 upfront – although more than that in terms of the gap between your tenant’s rent and what she is able to pay as it is not taxed. But there is another payment that could be even more useful - at least to your tenant - and it comes with fewer conditions as far as I can see.
The rent-a-room scheme pays up to €14,000 a year tax free, but that is a fixed upper limit – and it covers anything you might charge for utilities, laundry, etc, unlike the ARP. If what you receive from the person renting the room tips even a euro over that €14,000 limit, the entire sum becomes fully taxable.
At €1,167 a month, it should help her bridge the gap between what she can currently pay and the headline rent, even with the additional utility costs that may arise.
The other “advantage”, if you could call it that, is that you do not have to meet the same standards around the property and its facilities that apply under the ARP, unless you are letting the room to someone in receipt of the Housing Assistance Payment (HAP).
The issue here is that the property must be your main or family home, so it would be a case of your tenant licensing a student or other person to stay under the rent-a-room scheme, rather than you. Clearly, she will need your permission.
As she is in a tight financial spot, it would be nice for you to allow them the financial benefit of the rent-a-room income. You still get the rent you are entitled to under your agreement with the tenant and she gets a bit of financial wriggle room – although she might also have a bill for repairs if anything went wrong with the person availing of the scheme leading to damage of the property.
Of course, that all depends on having someone interested in renting the room. Depending on where in the State you are located this might be an issue, whereas the number of Ukrainian refugees looking for accommodation may mean tapping the ARP is less of a challenge, assuming you can meet the conditions.
* This article was edited on Sunday, December 1st, 2024
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