Can I afford to pay for essential aspects of the property’s rental from the money I receive?
You’ll need to factor in the cost of the property management company (if you decide to use one), as well as a maintenance person if you or your family are not going to be taking care of that yourself. You’ll also need insurance, which can be paid monthly or yearly. The cost of this will depend on the size and location of your property and the amount of rental income you receive. It’s also a good idea to keep a separate pot of money aside for essential maintenance – such as boiler repairs, utilities replacement and plumbing costs. Your rental income will be taxable – this is also something you’ll need to factor in. You can find details of this below.
Do I have a mortgage to pay?
Again, mortgage payments will eat into the funds you generate from the rental of your property. If you are still paying a mortgage you’ll need to notify your bank of your intentions to rent your property. You can find more details on this below.
Will rental partially or fully cover my care bill? Before considering payment options like rental seriously, you’ll need to ensure you have a place lined up in a residential home and be aware of how much that costs per month or per year.
If the rental only partially covers the cost of your care, how will you fund the rest?
As above, if your care costs are fully or partially covered by the rent you’ll need to have a back up just in case.
It’s also crucial that you calculate the long-term cost of your care now, as this could have considerable implications for the future. You can use our care costs calculator to do this.
Could your care costs increase at a later date if your health deteriorates?
As above, it’s important to consider your care needs and how they relate to the current and potential cost of your care. For example, if you are entering sheltered accommodation, do you expect to require nursing care at some point in the future? How much will that cost? Will it require further funding? These are all key questions to consider when thinking about rental.
Whilst renting in the UK is increasingly becoming common, it is still possible that there may be periods where the property is empty and therefore no income is coming in. However, even if the property is empty you will still be responsible for its upkeep. You can find out more about additional financial implications of renting a property and maintenance responsibilities below.