Homeowner renting out a room

Where a client who owns their own home is renting out a room to another person (sublets), the rent payment they get is accommodation income and deducted from their accommodation costs (including mortgage interest and principal payments) to determine the clients weekly qualifying accommodation costs when assessing the rate of Accommodation Supplement.

When money received from renters is more than the client's accommodation costs (after the deduction of the cost of any part of the property not being lived in by the client), the excess amount is income. In this case, the client will have no weekly qualifying accommodation costs and will not be eligible for Accommodation Supplement.

Note if a client doesn't live in part of their property, the cost of that part of the property is deducted from their accommodation costs before deducting money received from renters when calculating the weekly qualifying accommodation costs.

For more information about how to calculate income from rent see:

• Rent and board payments

Jennifer is a sole parent who owns her own home and is paying off her mortgage. Her total accommodation costs are $376 a week. She sublets a room in her house for $150 a week. Her weekly qualifying accommodation costs are $376 less $150 (rent received) so $226 a week. There is no income charge.

Jane owns a mortgage-free 2-bedroom house. Her total accommodation costs are $70 a week. She rents out the spare room for $180 a week. Jane will not qualify for accommodation supplement as she receives more in rent than she pays for her accommodation costs. There will be a $110 income charge ($180 less $70).

For more information see:

• Home ownership
• Tenant or homeowner has a boarder
• Tenant renting out a room
• Homeowner renting out part of their property
• Weekly qualifying accommodation costs