Dublin homeowners could earn €12,000 tax free from student digs

Dublin homeowners are being encouraged to rent out spare rooms in their homes to students, tax free.

University College Dublin Students' Union, Trinity College Dublin Students' Union and Daft.ie have launched a cam to encourage Dublin homeowners to let out spare rooms as digs to students by advertising the available tax incentives.

Under Irish law, homeowners don’t have to pay tax on rental income earned from digs unless it exceeds a yearly cap of €12,000.

The campaign aims to raise awareness on tax incentives for letting digs in order to to create a couple of hundred new bed spaces for students in a matter of weeks rather than years.

Students face one of the toughest scrambles for accommodation in Dublin in for years due to an under supply of affordable rented accommodation.

TCD, UCD and Daft.ie are promoting this information with geo-targeted adverts online which will be featured on DoneDeal.ie, Adverts.ie as well as a joint social media campaign.

The project is valued at €8,000 and features blog post testimonials of positive experiences.

UCD student Rachel Hally said she enjoyed living in digs while at college.

“Digs is a different experience from living in rented or student accommodation. When I finished my Leaving Cert, I was 16. Living in digs made my life easier as being away from home for me was terrifying. The family setting was reassuring and definitely helped me put more work into study as a first year,”she said.

Students’ Union Presidents from TCD and UCD, Kieran McNulty and Conor Viscardi said they hope the campaign will create more bed spaces and see it as a solution in the short term.

“Digs are a student-specific area of the housing market that can help resolve the issue of supply. Outside of digs, there’s a lack of stock. The private sector is overcrowded and campus accommodation is underdeveloped,” said Mr Viscardi.

“Some homeowners might be reprehensive at the thought of letting to students but the type of people who go for digs beds are the same that make for good tenants. They’re happier in a home setting than they would be in the typical student bedsit,” said Mr Mc Nulty.