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Could I rent a house and let ours out? - Carers UK Forum

Could I rent a house and let ours out?

Share your ideas about the practical side of caring.
We could rent our house for more than it would cost to rent a place where I want to live.

Would we be allowed to do so if Mother had savings less than 23,250 or would some of the profit count as an asset?

Trying to be creative here!
Rent coming in would count as income, same as pension.
Be aware that renting out involves other costs too, tax, repairs, legal fees 're contracts etc.
We rent out my mum's property as that and her pensions covers her fees without resorting to capital (yet!)
It's worth investigating further
Hi Jaqueline
Sorry I don't know the answer to that one but I think if you are self funding and can sustain being self funding based on rental income it shouldn't be a problem.
I am really replying just to see if you have considered lodgers? If you have a house perhaps a bit too big, is that a viable option if you have a spare room.? I realise it may not be due to caring circumstances but worth throwing into the mix to consider.
Back to the renting idea, if the house is in your mum's name and you rent it then the tenancy agreement would need to be in your mum's name or you as POA. Lodgers are a much more informal arrangement and less onerous.
Being devil's advocate here, if you moved to another LA and your mum went under the self funding threshold and SS had to pick up the tab for domicillary carers they may be more inclined to assess her as needing a care home (knowing this option would be funded by house) and would they suggest she returned to her home town to avoid funding. I am not sure about this , but have a suspicion they would wiggle out of be responsible for any bills whatever the consequences.
Back to your rental idea, I guess you need to calculate approx income from renting current home, work out the worst case scanareo in terms of max care costs in the future- up to 8 carers a day or residential costs and work out whether the income in addition to the capital in the property will in all likelihood be sufficient to meet expected timescales of care. If all this leaves you in credit then it is probably a resonable option.
Jacqueline, that's a difficult one.
It wouldn't be a problem whilst mum was self funding, but once her savings reduced to below £23,000 (which might not happen for a while) then the council might question what was going on.
(It's a bit late in the day, the little grey cell is tired!)
Would there be any "profit". If you are smart any spare income from the difference in rents would be taken up with "maintenance" of the old home.
However, realistically you only need to look after mum until you are 60 in 2 years time? So if the income from the old house wasn't used on maintenance, it could go towards the cost of extra care for mum whilst she is still living with you.
Then there's the income from selling off the stuff you don't need any more.
Another option would be for mum to take out an interest only loan against some of the value of the "old" house.

I'm sure others will have more ideas. Gradually, once you have all the options, you should be able to filter out the less attractive options, etc. I have a friend who owns a house on a housing estate in the town. The rent he gets more than pays for renting an older cottage in the country. He's been doing this for about 20 years now, so it CAN work.

From this, find out how much you could rent the existing house for, from a letting agent?
Also what work would be needed before it was lettable?
Then how much to rent a suitable property by the sea?
The basic problem with renting out one place to pay the rent on another is that good old HMRC puts their greedy hand out and takes at least 20% off you for the privilege!

You end up 'wasting' money on tax, alas.

And renting out is NOT an 'easy' way to make money! As others are warning, you have all the cost of administering the tenancy (whether you do it yourself, or pay an estate agent to do it), and there is SUCH a lot of risk about bad tenants.

Watch a single episode of Nightmare Tenants and Landlords and it will put you off for ever!

A friend of mine lets out her dad's home (to help with care home fees) and the last tenant sued her to get back the deposit money which she'd kept as he'd damaged the place so much. She countersued to INCREASE what he owed her (because the damage was in excess of the deposit), and in the end it was a complete shambles - the judge simply said 'split the deposit' - so she was WAY out of pocket.

Also, and this was really scary, the estate agent who was supposed to be 'managing' the let (for something like 15% of the monthly rental income by the way) is WAY in arrears of handing over the balance of the rent to her.

And, of course, these days, the burden on landlords is getting heavier and heavier - houses have to environmentally insulated blah blah blah, and the whole thing is a total pain. The government is basically trying to force 'buy to let' landlords out of business, to free up housing for people who can't afford to buy them anyway!
A possible alternative is to talk to the housing authority, and explain that you could be interested in letting it to them for a fixed term. They are certainly keen to do this in the New Forest area where I live. The council will update the property, let it to tenants for a fixed term, and then redecorate before they hand it back to you.
If the lodger option is at all viable you can get an income of £7,500 per year with no tax on it so this is additional income to other earnings and much more in your control.
I agree its definitely worth considering!

Obviously ,because they are 'in the house with you' you have to pick very carefully - BUT, I wonder whether you coiuld actually turn that to your advantage?

If, say, you had a compatible person to lodge, could they also do some caring of your mum for you, even if just 'sitting', so that you YOU can get out and about more???

Maybe, too, the lodger would agree to provide 'respite' care for you to actually get away for a few days??

Whether your mum paid them separately, or you deducted it off the lodging 'rent', it would maybe help you stay where you are?(Or, of course, it could work just as well if you do move to the seaside!)

So glad to hear your mum would be willing in principle to get out and about more if she had somewhere nice to go to - like the seaside in summer!
PS Lodgers have far fewer 'tenancy rights' than an actual tenant, which makes it easier to get them out!
Lots to consider and research!

We do have a spare room with ensuite which could be rented out easily. It could then be my take a break fund.

Would like Mother and I to go on hol together at some point but the logistics of her travelling would be quite something ...

One room rented out would pay for a whole house in the area I would like to live in.

Like the council idea. Hmmm