Your back garden could be the best-performing asset you own.
There's a quiet shift in Irish property most people haven't done the maths on yet.
Since 27 July 2026, the Class 3A exemption lets you place a self-contained 32–45 m² home in your rear garden with no planning application, where the conditions are met. Let it long-term and, the RTB has stated, the tenancy sits outside its remit: no RTB registration. Let at €1,150 a month, that's €13,800 a year in rent.
For a homeowner with a usable garden and some capital, that's not a renovation. It's an income stream parked between the kitchen window and the back fence.
Let's do it properly, the honest version is more persuasive than the hyped one
Let a fully-fitted, compliant Ériu unit to a single tenant or couple at €1,150 a month and that's €13,800 a year in gross rent.
Now the tax, told straight. When the draft rules came out in April, a lot of the coverage, ours included, expected this rent to be tax-free under Rent-a-Room. Revenue's published guidance says a self-contained unit not attached to the property cannot qualify, so plan on it being taxed as ordinary rental income, with allowable expenses deducted. Roughly, before expenses:
- Higher-rate taxpayer: about €7,100 a year after income tax, USC and PRSI
- Standard-rate taxpayer: about €9,900 a year after tax
Your gross yield is simply €13,800 ÷ your all-in installed cost, and the payback is the inverse, so the figure is only honest once it's run against a real quote for your site. We model your exact yield and payback for you, gross and after tax at your rate, with every cost line shown. Figures are illustrative and assume the rent is taxable, in line with Revenue's current Rent-a-Room guidance, and that the unit meets every Class 3A condition. Your net return depends on your marginal rate and allowable expenses. Confirm the tax position with a qualified accountant before relying on any projected return.
We'd rather you went in clear-eyed than excited and wrong.
The reason the yield is this strong is the entry price
The 20ft Expandable starts at €12,995 FOB China and reaches a fully-fitted, rentable, BER-A2 home at a fraction of the €110,000–€180,000 an Irish-built equivalent costs. The yield maths that follows is simply a function of that.
It's possible because our founder has sourced direct from the Henan factories since 2008 and inspects every unit in person. Factory-direct, not corner-cut: same compliance, same A2 BER, and the same 30-year anti-corrosion warranty, given by the factory and carried by Ériu, so the cover is held here in Ireland.
What a serious investor needs to know, told straight
Outside the RTB, long-term only
The RTB has stated that renting a qualifying Class 3A unit does not come under its remit and needs no RTB registration. That's a genuine operational advantage over a conventional rental. The trade-off: no short-term letting, the unit stays with the main house, and it can't be sold separately.
LPT and insurance
Revenue has confirmed the unit attracts its own LPT charge, separate from your house and payable even when empty, and your home insurance must be updated to declare the structure, or you risk invalidating cover on the principal house. Most insurers quote an uplift rather than a separate policy.
Mortgage and resale
Most Irish lenders will not currently mortgage a property with a second self-contained dwelling on the same title, which has resale and portability implications. Many investors fund the unit through other finance specifically to ring-fence the house mortgage.
We provide a written LPT, insurance and mortgage briefing with every quote, and recommend your solicitor reviews it. Full detail on the financial and legal treatment is here.
An income stream is only as good as its legality
Every Ériu unit is specified to Building Regulations (TGD Parts A–M), supplied BER-ready to A2, and shipped with a full compliance pack and a path through the Commencement Notice and BER assessment. A unit that isn't lawfully occupiable can't be lawfully let, so the compliance is part of the investment case.
See exactly what that involves →Renting out a garden home, questions answered
Last reviewed: September 2026
Can I earn rental income from a home in my garden in Ireland?
Yes, from a long-term let. A garden home built under Class 3A of S.I. No. 340 of 2026, in force since 27 July 2026, can be rented out, but not for short-term letting, and it must be occupied with the main house and can't be sold separately. Plan on the rent being taxable: Revenue's Rent-a-Room guidance states that a self-contained unit not attached to the property cannot qualify for the relief, so the rent is ordinary rental income with allowable expenses deducted. Confirm the tax position with a qualified accountant before relying on any projected return.
Is rent from a garden home tax-free under Rent-a-Room?
Plan on it not being tax-free. Revenue's Rent-a-Room guidance states that a self-contained unit which is not attached to the property cannot qualify for the relief, and a Class 3A garden home is detached. Taxed as ordinary rental income, €13,800 a year works out at roughly €7,100 after tax for a higher-rate taxpayer and roughly €9,900 for a standard-rate taxpayer, before allowable expenses. Confirm your own position with an accountant.
What yield does a garden rental home produce?
The gross yield is simply the annual rent divided by your all-in installed cost, so it depends on what you spend. Let at €1,150 a month, a unit earns €13,800 a year before tax. Because the Ériu 20ft Expandable starts from €12,995 FOB China and a fully-fitted compliant unit lands at a fraction of the €110,000–€180,000 an Irish-built equivalent costs, the ratio is strong, but the only honest figure is the one calculated against a real quote for your site. We model it for you, gross and after tax at your rate.
Do RTB rules and rent-pressure-zone limits apply to a garden rental?
The RTB has stated that renting a qualifying Class 3A garden home does not come under its remit and does not need to be registered with the RTB. That only applies where the unit meets every Class 3A condition, and short-term letting is not permitted. Confirm your position with your solicitor before letting.
Does a rented garden home pay Local Property Tax?
Yes. Revenue has confirmed that a permanent garden home suitable for use as a separate dwelling attracts its own LPT charge. It is valued in its own right, gets its own property ID, and LPT is payable even when it is empty. Your home insurance must also be updated to declare the structure.
Get your site reviewed and your yield modelled.
Send us your site, county and target spec. We'll come back with a factory-direct quote, your specific yield breakdown, and the LPT/insurance/finance briefing. Direct reply from Noel within 24 hours.
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