How can my house generate an income now that I’m living in a nursing home?

Can you advise me please about house rental and “pledged” housing? I own a semidetached three-bedroom house in a cul-de-sac in South Dublin. I am in a nursing home now and will be for the future. I need income from my house and would appreciate advice on how I might do that. I have heard about “pledged” homes which the Red Cross seem to be letting to house refugees. I hope you can help me.

Your home, regardless of its value, is probably your most important asset. It is the thing that gives you the security of knowing you always have a roof over your head or a place to call your own.

I note you are currently in a nursing home and you expect to continue to reside there in future. This means your house is lying empty when it could be in fact generating an income for you.

With Ireland in a housing crisis, it certainly seems wasteful for your home to be left empty. However, I would urge great caution regarding any decisions you make in relation to the occupation of your home for the following reasons:

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How can my house generate an income now that I’m living in a nursing home?

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1. As you are currently residing in a nursing home and expect to continue to live there, I must presume some level of frailty, vulnerability or disability. You are, therefore, unlikely to be best placed to handle the letting of your property, and I would recommend that if you are intent on proceeding to let your home, you should engage a good and trusted letting agent or a trusted family member to deal with the practical aspects of the letting. These include getting the house ready for letting, arranging viewings, rent collection arrangements, and so on.

2. You have not mentioned whether or not you are in receipt of Fair Deal or other financial support while living in the nursing home. Since February 1st, 2024, if you own your home and are renting it out to a tenant while you are in a nursing home, you can apply to keep 100 per cent of this rental income instead of having to pay some of it towards your nursing home care. Nevertheless, you should seek advice on this from an accountant if you have any queries.

[ Q&A: Will I pay tax on the income I’m receiving for housing Ukrainian refugees? ]

3. In the case of many homes pledged to refugees, the income to homeowners from the Government schemes, known as the Accommodation Recognition Payment, is tax free. The payment is currently set at €800 per month per accommodation. When making a decision, you should compare the amount of this payment with the amount of rent net of tax that you would expect to achieve from letting your home. However, there is uncertainty regarding the status of these occupants and whether or not they acquire tenancy rights after a certain period of time. Currently, the scheme does not create a landlord and tenant relationship between you and the occupier. You must give a commitment to host the person or persons for at least six months in order to avail of the payment.

It may surprise you to know that it can be extremely difficult to have people removed from your home, even if they are neglecting or refusing to pay you the agreed rent

It is recommended by the Red Cross that property owners and beneficiaries (refugees/international protection applicants) sign a temporary accommodation licence agreement to protect the rights of the property owner and the beneficiary, and to protect the property itself.

A local authority or the Red Cross can provide a template agreement which can be used or adapted as required, and the “licence period” should be stated on the licence agreement. At the end of the period, the licence period can be extended with the agreement of all parties.

However, how these arrangements will be viewed by the courts in the future is yet to be seen, especially in circumstances where people have occupied your property for a long time and may have nowhere else to go. It is not yet clear how a court will interpret such an arrangement, or whether a tenancy might ultimately be deemed to exist. Each case will depend on its own facts.

4. If you let your property privately, you could enter a formal letting arrangement with a tenant. However, the difficulty being experienced by many “accidental landlords” in Ireland at the moment is that if they need to return to the property or need vacant possession to sell it, then it is often a very slow, technical process. At times it can be difficult to have tenants removed from a property. It may surprise you to know that it can be extremely difficult to have people removed from your home, even if they are neglecting or refusing to pay you the agreed rent.

[ Accommodating Ukrainian refugees: how does Ireland compare? ]

In summary, you should be extremely cautious in making decisions regarding the occupation of your house – and must use trusted advisers to assist you if you proceed.

Samantha Geraghty is a solicitor at P O’Connor & Son

Do you have a query? Email propertyquestions@irishtimes.com

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*Article updated on June 26th