Renting fathers house while in nursing home

I

ineedtoknow

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I have spoken to the PRTB and they have advised a family member can act on behalf of an elderly person in an nursing home: if the person has has dementia can a family member draw up a rental agreement on behalf of the parent if there is no power of atorney

Thank you
 
If you are availing of the fair deal loan; consider carefully before letting out the house.

Fair deal loan must be paid with 1 year or interest accrues.

An overholding tenant when you want to sell could cause mayhem.
 
A number of years ago, I worked on a case where a person's home was let to meet part of the cost of their nursing home care. The family were vulnerable because to a previous tragedy.

It didn't go well. The tenants left the property in such a poor state that the cost of restoring it to its previous condition exceeded the gross value of the rents they has paid during the term of the letting, which spanned several years.

I would count this only as a realistic option if you are prepared to watch the tenants like a hawk or have available a strong letting agent who can proactively monitor the property for you.
 
cremeegg said:
Probably a bad idea, most likely 80% of the rent would have to go to pay for the nursing home.
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The rules changed recently.

From 1 February 2024, the Fair Deal Scheme financial assessment will change if you are renting your home while you are in a nursing home. If you rent out your vacant home, you will be able to keep 100% of the rental income.

Changes to rental income under the Fair Deal scheme

www.citizensinformation.ie www.citizensinformation.ie
 
ineedtoknow said:
Thank you for that. Can a family member become a landlord if the parent has dementia
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To me, that's a financial decision as it is managing your father's assets. I would not say it's a good idea without a power of attorney. What happens if you encounter any issues with the renters, any insurance issues (how do you make a claim without being the owner?)... I am not a legal expert but I don't think you have any authority to do that.
 
A formal letting agreement with a stranger carries risk of overholding. Nursing home stays can often be (sadly) short and a tenant may not want to leave when it’s time.

In the scheme of an estate the net rent achieved from renting the house for six or 12 months is trivial.

I would prefer a trusted friend or family member to act as caretaker to stay there in return for paying all bills, refunding you for insurance, and carrying out minor repairs.
 
Thank you for the replies.

A family member wants to rent it above board in line with the fair deal changes.

One family member is objecting on the grounds that no one in the family is entitled or legally able to draw up a contract because the owner has dementia. He is insisting the house must remain vacant.
 
ineedtoknow said:
One family member is objecting on the grounds that no one in the family is entitled or legally able to draw up a contract because the owner has dementia. He is insisting the house must remain vacant.
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Unfortunately I think you have a human issue rather than a legal one here.

Good luck with this, these situations can exert a lot of stress.
 
ineedtoknow said:
Thank you for the replies.

A family member wants to rent it above board in line with the fair deal changes.

One family member is objecting on the grounds that no one in the family is entitled or legally able to draw up a contract because the owner has dementia. He is insisting the house must remain vacant.
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You don't have to do a contract in writing. It's far better the house is occupied so that it is taken care of and doesn't fall into dereliction.

Why does the child (assumption) want the house to be left empty?
 
Premos said:
To me, that's a financial decision as it is managing your father's assets. I would not say it's a good idea without a power of attorney. What happens if you encounter any issues with the renters, any insurance issues (how do you make a claim without being the owner?)... I am not a legal expert but I don't think you have any authority to do that.
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Insurance companies don't like empty houses. If the house gets flooded while empty do you think the insurance company will not pay out? The person looking after the parent's interests must inform the insurance company the house is empty, that the parent is in a home, and if rented they must inform the insurance company of that.
 
Landlord insurance was one of the issue I mentioned. My point was that the children have no authority to rent the house. They can't do what they want with the financial assets. They will probably be able to organise the insurance for the house in informing the insurance company of the situation, they might even have to visit the house on a regular basis to be covered. However renting someone else place is different. They have no authority to do it. It's not their property and they can't obtain the authority from their father. We had issues just stopping a standing order for a utility company without a power of attorney. I just don't believe that someone can come along and rent your house as you are no longer living there without any legal authority to do so. Who will be liable if anything goes wrong?
 
Premos said:
They will probably be able to organise the insurance for the house in informing the insurance company of the situation, they might even have to visit the house on a regular basis to be covered. However renting someone else place is different. They have no authority to do it.
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Given they have no authority to rent, would it not be the case that they have no insurable interest?
 
Leo said:
Given they have no authority to rent, would it not be the case that they have no insurable interest?
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We managed to insure the house. However I don't remember the circumstances (no rental, just the house). I was trying that they could probably managed to keep the house cover and might have to visit the house regularly if empty. However rental insurance might be different if they have no authority to rent.
 
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Premos said:
However rental insurance might be different if they have no authority to rent.
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The authority you speak of is the same, power of attorney (which can be limited to specified areas). The insurance company might take money off a third party, but if it comes to a claim they'll only deal with the named party or someone previously authorised to act on their behalf. Might be best line that up prior to it becoming an issue.
 
Bronte said:
Insurance companies don't like empty houses.
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Just reading over our household insurance renewal at moment and it states 'that they need to be notified if the property is left unoccupied for more than 40 days at any one time'.

When my late mother's house was empty because of hospital stay and then probate the house insurance was very expensive compared to the normal premium.
 
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