Differential Rent Scheme

Kerry County Council
Rent Scheme 2017

Attached Ministerial Directive ‘Policy Directions Relating to Local Authority Rent Schemes’ dated 30th June 2017

1. Scope of Scheme
This Scheme will apply across the entire County of Kerry, which encompasses the following Municipal Districts, with effect from the 1st July 2014.

Tralee Municipal District
Listowel Municipal District
South & West Municipal District
Killarney Municipal District

It will supersede all existing Differential and Graded Rent Schemes and will be subject to an annual review.

2. Differential Rents
(i). Rents of dwellings let on differential rent will be calculated in accordance with schedule 1 attached, based on assessable income as defined in paragraph (ii) below, together with a contribution from any subsidiary earners in the household. Tenants in employment may be required to provide a Form P60. Rents will normally be based on certified income of the week ending on 7th January 2017. In determining rent in the case of a new or transferred tenancy, assessable income will be reckoned by reference to the income of the family at the date of commencement of tenancy.

(ii). Assessable income of the principal earner is income from the following sources, assessed in full, but reduced by pay-related social insurance contributions and any income tax payable on such income:-

(a) income from employment including self-employment;
(b) all social insurance and social assistance payments, allowances and pensions, health board allowances and Fás training allowances except payments listed at (vi) beneath;
(c) income from pensions of kinds not already included at (b) above;
(d) where a situation arises where co-habiting couples are in receipt of separate incomes, these incomes will be combined and treated as one for the purpose of calculating the Principal Earner income under the Differential Rent Scheme.

(iii) Income of an employed person is, in general, the normal weekly rate of remuneration as defined in section 1 of the Holidays (Employees) Act, 1973, except that overtime is excluded. All other regular payments in the nature of pay are included.

(iv) Principal earner is the person (either the tenant or any other person normally resident in the household) who is in receipt of the highest assessable income within the household.

(v) Subsidiary earner is a member of the household, other than the principal earner, who has an income.

(vi) Income from the following sources is disregarded for the purpose of calculation of rents;

(a) children’s allowances, orphan’s allowances or orphan’s pensions payable under the Social Welfare (Consolidation) Act 1981;
(b) scholarships and Higher Education Grants;
(c) allowances payable under the Boarding Out of Children Regulations 1954;
(d) allowances for domiciliary care of handicapped children under the Health Act, 1970;
(e) lump sum compensation payments;

3. Calculation of Rent
The rent shall be calculated according to the following procedure:
Step 1
Where the income of the principal earner is €140 or less the rent shall be €15.50
(except in the case of no. 5 below).
Step 2
Where the income of the principal earner exceeds €140 additional rent will be charged on the basis of an additional €0.20 per Euro.

This gives the basic rent of the household as per the attached schedule.

Subsidiary Earner
After the rent payable in respect of the principal earner has been determined, 10% of the income of each subsidiary earner shall be added, subject to a maximum contribution of €15.00 by each subsidiary earner.

Child Allowance
A deduction of €2.00 will be allowed in respect of each child under the age of 16 years, or who being under 21 years, is attending a full-time course of education and is wholly or mainly maintained by the principal earner.

The amount of rent calculated in this way shall not exceed the maximum rent referred to in paragraph 4, or be less than the minimum rent set out in paragraph 5.

4. Maximum Rent
The weekly maximum rent of each category of Local Authority rented dwelling (both new and existing) will be as follows:

1 Bedroomed House                                                                €66.00
2 Bedroomed Houses                                                              €70.00
3 Bedroomed Houses                                                              €79.00
4 Bedroomed Houses                                                              €83.00
Housing Units                                                                          €50.00

The maximum rent may be applied by the Local Authority when a Rent Assessment Form is not returned for rent assessment purposes.

5. Minimum Rent
Where the total household income is €140 or less, a minimum rent of €15.50 shall apply in the case of standard houses (3/4 bedrooms), except in the case of special small houses (Units, 1/2 bedrooms) where the minimum shall be €10.50.

6. Where a significant change has not occurred in household circumstances, since the last review of calculation of rent:
(a) No reduction in weekly rent will be given purely by the application of the calculation set out in paragraph 3 of this Scheme.
(b) Any increase in rent which occurs purely by the application of the calculation set out in paragraph 3 of this Scheme will be reviewed on a case by case basis.

7. Hardship Cases
In exceptional circumstances where payment of a rent calculated under paragraph 3 would, in the opinion of the authority, give rise to hardship, a housing authority may agree to accept a lesser sum from a tenant for a specified period.

Where the sole source of income in a household is made up of Social Welfare as a general guideline it is considered that no more than 15% of any increase in income should be absorbed by an increase in rent.

8. Review of Rent
The tenant should notify the Local Authority immediately of any change in income or in family circumstances. The Local Authority reserves the right to apply any rent increase retrospectively.

9. Fixed Rents
Where a fixed rent applies to a dwelling, the rent will be increased by €1.00 per week with effect from the commencement of the Scheme. Tenants on fixed rent will be offered the option of going on to differential rent. This should ensure that rent increases will not entail hardship in any case.

10. Rounding
Where the rents (fixed and differential) calculated in accordance with the preceding paragraphs are not multiples of €1.00 they shall be rounded to the nearest €1.00 (except in the case of minimum rents as outlined above).



Contact Us

Housing Dept,
Rathass, Tralee,
Co. Kerry
Applications (066) 7183862
Grants (066) 7183839
Housing Rents (066) 7183647
Repairs (066) 7183645
Rental Accommodation (066) 7183855
F. (066) 7161803
Email: [email protected]

  • Landlord Information Sheet
  • Tenant Information Sheet
  • Application Form
  • Housing Adaptation Grant for People with a Disability
  • Housing Aid for Older People
  • Mobility Aids Housing Grant Scheme
  • New Loans
  • Reconstruction Loans
  • Mortgage Allowance Scheme
  • Mortgage Arrears
Translate »