Tenant renting out a room

If a client is renting and rents out a room to another person, the rent payment they get is accommodation income and deducted from their accommodation costs 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 renting a 3-bedroom house for $700 a week. She rents 1 room out for $250 a week. Her weekly qualifying accommodation cost is $450 ($700 less $250) a week. There is no income charge.

Jane is renting a 2-bedroom flat for $320 a week. She rents out the spare room for $330 a week. Jane will not qualify for Accommodation Supplement as she gets more in rent than she pays. The $10.00 is charged as income.

For more information see:

• Weekly qualifying accommodation costs
• Rent
• Tenant or homeowner has a boarder
• Homeowner renting out a room
• Homeowner renting out part of the property
• Social housing tenants