Should I let my mother's house now that she is in a home?
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NoRegretsCoyote
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Are you making use of the Fair Deal scheme?
I take it the other parent is either deceased or not resident and therefore the house is empty?
There's really no such thing as 'short-term' tenants these days, once the tenant is in place for 6 months they have tenure for 6 years. All other things being equal, you will only be able to evict on the grounds that the house is to be sold or you need it for your own use.
Your parent will have to pay taxes etc., on the rental income.
If your parent is in residential care and you are in the 'Fair Deal' scheme the net rental amount will be included as income for assessment. I did see something recently that there were some plans to change this, but I don't believe it's official legislation yet (someone else may be more up to date).
The one advantage is that the property is not allowed to moulder and decay and it's also preferable for insurance purposes as there are significant restrictions for empty properties.
Best bet, if you can do it, is to have a family member live in the property as a caretaker, keep it maintained and pay the bills.
Yes I'm afraid. Just looking at options at the moment. You read so much about the accidental landlord and the hassle it is v the money made.
As I am only looking into this option as the Fair Deal keep the money option was being talked about. It's trying tofigure would you make any €€'s over the six years after tax, upkeep etc. Rent would be approx 1100€ pm. Someone also mentioned leasing the house to welfare as a HAP and not have to worry about not getting paid on time. Since covid my job is gone and i could do with any extra €€.
NoRegretsCoyote
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Your parent would receive the rent and pay tax on any profits. Then 80% of net profits go to the Fair Deal scheme.
On a gross €1100 I can't see your parent keeping much more than €150 a month after upkeep and tax. This is not worth it given the hassle involved in being a landlord and the risk of a bad tenant.
Your best bet is finding a trusted friend or family member who will mind the house in return for paying for small repairs, utilities, and insurance. This kind of arrangement is very common and Revenue will have no interest.
On the Hap? Remember, if the tenant doesn't pay the council the difference, the council do not pay you.
Don't believe for one second that it doesn't happen either. Have you other brothers and sisters, who pays the house insurance, who does the bookwork and pays tax, who does upkeep and gets it ready for letting , etc, etc, etc? Those are some of the little issues you'll face.
Don't believe for one second that it doesn't happen either. Have you other brothers and sisters, who pays the house insurance, who does the bookwork and pays tax, who does upkeep and gets it ready for letting , etc, etc, etc? Those are some of the little issues you'll face.
Few points here
a. Any income is your parent's, not yours.
b. Tax etc., has to be paid on the rental income by your parent.
c. 80% of the balance of the net rental income will be assessed towards nursing home fees.
d. At best you'll break even.
e. Not sure where the six years timeframes comes from; I'm sure we wish your parent a long life, but in truth you have no idea of the timeline here.
Edit: looks like we all posted at the same time! We're not ganging up on you.
But you said: There's really no such thing as 'short-term' tenants these days, once the tenant is in place for 6 months they have tenure for 6 years.
Indeed; however once the (unlooked for) event of your parent's demise, the situation changes again & you will most likely be looking to sell the property. So you will have to notify your tenant that they have to leave; which can be an issue in itself.But you said: There's really no such thing as 'short-term' tenants these days, once the tenant is in place for 6 months they have tenure for 6 years.
Fortunately I have my own home. I'll have to think about it. Thanks all for your views and opinions.
Could revenue assess the benefit of living rent free as a gift to the person acting as caretaker?
I'm open to correction but technically it's a gift of (reduced) rent.
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This is covered in today's Irish Times. https://www.irishtimes.com/business/personal-finance/how-does-revenue-view-adults-living-rent-free-in-parents-property-1.4543367 The [broken link removed] tightened the rules and now the only support parents are allowed offer adult children tax-free is...
www.askaboutmoney.com
Steven Barrett
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With the amount of extensions being built to people's homes, there certainly is a market for short term lets. People who have to move out of their home for a period of time while their own home is being renovated.But you said: There's really no such thing as 'short-term' tenants these days, once the tenant is in place for 6 months they have tenure for 6 years.
Bear in mind that when the time comes for your friend to move out, you may find out they are no longer your "friend" and may be very reluctant to do so. There are plenty of threads on here about family disputes over property and friends is just another version of that.
can the property be used by other family members, a holiday home for example or when they are down visiting from elsewhere?