Rent of the Family Home is now exempt under the Fair Deal
The Government have finally passed the legislation to exempt Rental Income from assessments under the Fair Deal. This has come into effect from the 1st of February 2024. It means that any resident who rents their home while under the fair deal will not have to contribute any of the rent towards their cost of care.
This change is a result of the Government striking a deal with the Independent TD ‘s for this exemption in return for their support in the vote to remove the eviction ban last year. The change like any changes to the Fair Deal that benefits the resident, while welcome comes with caution. At the time the Minister for older persons Mary Butler was quite vocal about the change, citing her concerns that the change could result in Elder Abuse, whereby older persons may be forced into Nursing Homes, before they need to, so that their family can benefit from the rent.
I co wrote an article in the Irish Independent which you can see on our blog which outlined why renting out the home under the Fair Deal even with rent being an exempt income was not necessarily a good idea. My concerns stand and in summary remain as follows.
• Families or the homeowner will have to register with the RTB as a Landlord
• The RTB may require substantial improvements to be carried out to the home to bring in line with their minimum requirements.
• Who has the right to sign a rental agreement if the home owner has lost capacity and does not have an EPOA in place.
• Tenants will be entitled to a minimum 12-month contract, with notice thereafter of 180 days which will increase the longer the tenancy runs for.
• The homeowner when they own the home have Rights, when they rent, they have obligations.
• Where residents have to avail of the Nursing Home loan, when they pass their Executors may not be able to get vacant possession of the home to sell it in time to repay the Nursing Home loan, which is repayable within 12 months of death. Thus, incurring punitive interest rates from Revenue who collect the loans on behalf of the HSE.
• Investment in the property required by the RTB may not be recouped in rent if the Nursing Home resident passes within a certain time period.
• The investment required to bring the house up to RTB standard may use up scarce savings that are required to pay for the care and other costs that the resident may incur.
• Renting in Ireland is really for those who are willing to enter the rental market for the long-term with increasing legislation and tenant’s rights. Sadly, most Nursing Home residents only live on average for 2.5 years in care, thus will usually not benefit from the arrangement long enough to recoup costs of investment in the property to bring it to a renting standard.
• Tenants right to buy.
• For some it may work as it may allow rents to be saved to repay the Nursing Home loan etc
• It will allow the house to be occupied when perhaps it cannot be sold due to lack of capacity to sign sales documentation by the owner.
• But when I weigh up the pros versus the cons up, I still do not believe it is a good thing to do.
When my article appeared on the front page of the Independent last May I received significant positive feedback to the article and on Radio Shows in which I was a guest after it. Many of my new clients in the months that followed brought the article up and stated how right I was in everything I had said based on in some cases what many of them had experienced as accidental landlords. Why would anyone take on the additional stress of being a landlord when one has a loved one in care and all the other stresses of life.?
I have had the privilege of using the service on 2 separate occasions and I can honestly say that it was the most professional service I received in the area of providing advice around that fair deal System run by the HSE.
The cost of the service was more than out weighed by the savings accrued as a result of Toms expertise and advice throughout (several thousand euro in savings)
We were so lucky to have an expert such as Tom who provided information, expertise and most of all personal advice during the entire process and cannot thank him enough for his support and assistance.
Brian Mac manus
Tom Murray Fair Deal was a huge help to us. He guided us the whole way through. His advice is impeccable. He responds to phone calls and e mails immediately and produces documents almost in real time. I could not emphasise too strongly the help Tom provided. Worth every penny. Thanks Tom.
I contacted Tom for advice regarding the Fair Deal Scheme as my mother required full time care in a nursing home. Tom's expertise and advice was invaluable. He made the whole daunting process very easy. He had a list of required documents (some that I didn’t know I would need). He took the pain and worry out of the whole process and put my mind at rest. I cannot recommend Tom and this service highly enough. I consider this to be money well spent. Thanks Tom.
Once you make the first call to Tom regarding the Fair Deal Scheme , he makes it all very easy to understand and navigates you easily through the process. The thought of Fair Deal can be daunting for any family but with Tom's assistance and knowledge of the scheme it was an easy process.
Excellent advice, very professional
We contacted Tom with regard to my parents needing Nursing Home care and the Fair Deal process.
Tom's advice was absolutely invaluable to us and without his help we wouldn't have been able to get through this daunting and difficult process.
We can't thank him enough for his advice and support and would have no hesitation in recommending him.
I contacted Tom seeking advice on structuring a financial solution for both of my parent's long term care. Tom took the time to analyse in detail their particular needs and circumstances. This resulted in a long term sustainable financial solution under the Fair Deal Scheme. I would recommend Tom without hesitation, given the value his professional advise brought in guiding us to a long term sustainable financial solution.
Gave excellent advice and fully answered my follow-up questions.
We recently contacted Tom for help with the Fair Deal application process for our father. Although it is a process that can be quite daunting & ambiguous at times, Tom expertly guided us through. There wasn't a single question we had that he could not answer and apart from the financials at all, his extensive and insightful knowledge of the nursing home landscape was absolutely invaluable to us at such a difficult time. His response rate was extremely prompt at all times and he really went above and beyond for us. We could not possibly recommend Tom and his services enough.
I contacted Tom for advice regarding the Fair Deal Scheme as my mother required full time care in a nursing home. Tom's advice was invaluable, his knowledge was exceptional and he was very understanding at this difficult time.
I would not hesitate in recommending his services to anyone finding this process daunting.
Thank you Tom for putting my mind at ease.