Fine Gael has called for those letting rooms to be able to earn more without paying tax.
Dublin Mid West TD Emer Higgins, who sits on the Oireachtas housing committee, has said that increasing the threshold would encourage more homeowners to take part in the Rent-a-Room scheme.
Currently those taking part scheme can earn up to €14,000 from the scheme tax-free.
This equates to income of up to €1,166.66 per month under the scheme over a 12-month period.
Deputy Higgins said: "If it were to be increased to €18,000 per year, this would bring the income figure to up €1,500 per month."
Accommodation crisis
We are facing "acute pressure" in the rental market, according to Deputy Higgins.
“It makes perfect sense for property owners to consider renting out a spare room to those in need of accommodation", she said.
“It could also apply to older people whose children have left home and they may wish to boost their income in retirement, or first-time homeowners with larger mortgages who could do with the help from such a measure.
Not only can rooms in houses or apartments be let under the scheme, but also self-contained unit, such as a basement flat or a converted garage attached to the person’s home.
“If the property owner rents out a room to a student, the Department of Further and Higher Education has confirmed this will not impact on eligibility for the student grant", Deputy Higgins said.
“I believe the Government should carry out a high-profile communications campaigning encouraging people to rent out a room in their homes with information on the relief scheme and how they can claim it."
Students
Higher Education Minister Simon Harris has said student accommodation policies need to change to remedy the accommodation crisis.
In August, he told Newstalk Breakfast: "We need the State to do what it has done before - which is invest in colleges building college-owned student accommodation."
"I got agreement for that to happen in July, I believe it is going to be a game-changer."
"The traditional digs - or the Rent-a-Room scheme, as it's known - does provide an option to lots and lots of young people to rent a room in somebody's house."
Those renting out rooms do not have their social welfare income affected by the scheme either.
