I’m in full-time care in a nursing home. Currently, the Fair Deal scheme covers some of my nursing home expenses. How do I apply to have income from renting my home excluded from the assessment?
Under the Fair Deal scheme, you pay a certain amount towards the cost of your care in a nursing home and the Health Service Executive (HSE) pays the rest. Exactly how much you pay is determined by a financial assessment.
What is the Financial Assessment?
To work out how much you pay towards your care, the HSE assesses your income, cash assets and non-cash assets. Then allowable deductions (such as income tax and health expenses) are subtracted leaving your assessable income. The assessment does not count the first €36,000 of your assets (€72,000 for a couple).
You pay 80% of your income (minus deductions) and 7.5% of the value of your assets per year towards your care. If you are part of a couple, you pay half of these amounts, 40% of your income and 3.75% of the value of your assets per year.
Is the rent from my home counted as income?
Since 1 February 2024, if you own your home (your principal private residence) and are renting it out to a tenant while you are in a nursing home, you can apply to have all of the rental income exempted from the financial assessment. So, you can now keep 100% of rental income from your home. Before, 40% of rental income from your home was paid towards your care.
Only rental income from your main home is exempt from assessment. If the property you are renting out is not your home, the rental income is assessed, and you must pay 80% of it towards your care.
The tenancy in your rented principal private residence must be registered with the RTB, unless it is a type of rental agreement or letting that is exempt from RTB registration. Contact the Residential Tenancies Board for advice on this.
How do I apply to keep my rental income?
To apply, you should complete the Principal Private Residence Rental Income application form (pdf) and send it to your Local Nursing Home Support Office with copies of your:
Residential Tenancies Board (RTB) registration approval letter
Rental agreement showing the rental amount
Latest notice of assessment from Revenue
If you cannot fill out the application form on your own behalf, a Specified Person, Decision Making Representative or Care Representative may complete the application form.
Read more about the Fair Deal Scheme at https://bit.ly/fair-deal-scheme or call us on 0818 07 4000 (Monday to Friday, 9am to 8pm
Know Your Rights has been compiled by South Connacht Citizens Information Service CLG, which provides a free and confidential service to the public. Tel: 0818 07 6330 Address: Boyle CIC, Elphin Street, Boyle, Co. Roscommon
