Did you know a nursing home resident can now rent out their home and keep the full rental income under the Fair Deal scheme?

Since February 2024, a nursing home resident can rent out their principal private residence and keep 100% of the rental income without it affecting their Fair Deal financial assessment.

Previously, part of the rental income from the family home was included when calculating the resident's contribution towards nursing home care. This is no longer the case.

The 7.5% annual property charge (capped at three years) on the home still applies under the scheme, but the rental income itself is now disregarded.

This change allows families to avoid leaving homes vacant and may help with the upkeep of the property while a loved one is in care.

Anyone considering this option should ensure compliance with RTB registration, landlord obligations, and tax rules relating to rental income, and obtain appropriate legal or financial advice.