Those in receipt of social welfare payments could potentially add a €269 boost to their account each week.
If you avail of a means-tested weekly social assistance payment, Supplementary Welfare Allowance or Working Family Payment, this applies to you, RSVP Live reported.
The Rent-a-room relief scheme allows homeowners with these social welfare payments to make up to €14,000 per year by renting out a room in their house, without their welfare payments being affected.
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Those who let to private tenants, with a self-contained unit, like a basement flat or a converted garage attached to their home, can also avail of this relief.
How do you know if you can avail of the rent-a room relief?
Your home must be located in Ireland and your home must be your primary residence.
This means that it is your home for most of the year and it is where people would normally expect to find you.
You can also qualify even if you are sub-letting to a tenant and do not own the property.
However, if you are renting to a Housing Assistance Payment tenant you must own the property and prove it.
There are limits to the total sum of money you can receive.
The gross total rent that you get, which includes any money that the tenant pays for food, utilities, laundry or similar goods and services, cannot be more than €14,000 in the tax year. This is from 1 January to 31 December.
Are there any rules?
If you receive a means-tested weekly social assistance payment, Supplementary Welfare Allowance or Working Family Payment, you can receive up to €269.23 a week, which comes to €14,000 per year, for letting out a room in your own home without it affecting your welfare payments.
However, it is vital to ensure that renting a room in your home does not create any issues with any other payments you are in receipt of, for example, Fuel Allowance.
This does not apply to short-term lettings of less than 28 consecutive days. You are also not qualified if you are renting to an employee or a family member. Immediate family members are:
Your spouse, civil partner or partner
Your child, or the spouse of your child
Your parent, step-parent or parent-in-law
Your sibling, including step-siblings or siblings-in-law
Your grandparent or your grandchild
Your aunt or uncle
Your nephew or niece
Additionally, the Accommodation Recognition Payment for hosting refugees from Ukraine is also not assessed in the means test for a weekly social assistance payment, Supplementary Welfare Allowance or Working Family Payment.
For more information from the Government on the relief, click here.
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