Renting out the donor's property
Guidance from Estate Advisory Group
Written and legally reviewed by Ramani Gill TEP, Solicitor and private client practitioner·Last reviewed 13 August 2026
Letting can keep a home in the family and still pay for care. It also makes you the manager of a tenancy on somebody else's behalf.
When letting beats selling
- The donor may return home, or has said they want to keep it.
- Rent, with a deferred payment agreement, can cover care fees without a forced sale.
- The market is poor and the donor's cash reserves can bridge the gap.
- A spouse, partner or dependent relative still lives in the property.
Under a registered property and financial affairs LPA, you have the authority to let the donor's home as long as it is not restricted in section 7 and — where attorneys act jointly — everyone agrees. As with a sale, letting must be for the donor's benefit, not for the convenience of family members who want to keep the house in reserve.
What you take on
- Gas safety, electrical checks, EPC, deposit protection and the right-to-rent checks.
- Landlord insurance — a standard policy will not cover a let or an empty property.
- Income tax on the rent through the donor's self assessment.
- Notifying the mortgage lender; consent to let is usually required.
Worked example
Grace is attorney for her uncle Michael, who has dementia and now lives with his daughter. Michael's flat sits empty. Grace gets three rental valuations, arranges landlord insurance, and instructs a letting agent to find a tenant and manage gas safety and deposit protection. She keeps copies of the tenancy agreement, the agent's statements and the rent received, all paid into an account in Michael's name. Because Michael's cash savings are modest, the rent — declared through his self-assessment return — now covers most of his weekly care contribution, and the flat stays available if Michael's circumstances change.
Weighing it against a sale
| Factor | Favours letting | Favours selling |
|---|---|---|
| Chance of returning home | Realistic possibility | No realistic prospect |
| Attorney's time and capacity | Willing to manage a tenancy, or use an agent | Wants a clean break |
| Property condition | Lettable with modest work | Needs work only a buyer would fund |
| Family agreement | Family support keeping it | Family agree a sale is simpler |
Best interests, recorded
Letting to family is a conflict
If a relative becomes the tenant, use a market rent, an independent valuation and a proper tenancy agreement, and consider asking a co-attorney to make the decision. See conflicts of interest.
Keep a written note of why letting, rather than selling, served the donor's interests at the time — reviewed periodically, since circumstances such as a care needs assessment can change the answer. Attorneys who let a property sometimes forget to revisit the decision a year or two later.
Common questions
Does rental income affect the local authority assessment?
Yes, rent counts as income in a financial assessment for care, and the property's value may count as capital depending on who lives there.
Can I use a letting agent?
Yes, and it is often sensible. The fees are a legitimate expense of the donor's estate.
Do I need the donor's mortgage lender's permission to let?
Usually yes — most residential mortgages require 'consent to let' before the property is rented out, and letting without it can breach the mortgage terms.
What if the tenancy runs into arrears or disrepair?
You deal with it as any landlord would — following the correct legal process for arrears or repairs — and keep records showing you acted promptly, since you remain accountable to the OPG for how the donor's asset is managed.
Read next
Where this fits
This page is part of Attorneys and certificate providers. The pages below take it further.
- Make an LPA online
The whole journey end to end: questions, documents, signing and registration.
- The LPA forms explained
LP1F, LP1H and LP3 — what each section asks and where people go wrong.
Review and sources
Reviewed by Ramani Gill TEP, Solicitor and private client practitioner. Last reviewed 13 August 2026. We recheck fees, forms and Office of the Public Guardian guidance whenever they change — see our editorial policy.
Official sources
Making your own LPA?
Name your attorneys, set how they must decide together, and we prepare the forms for £49.
The Office of the Public Guardian charges a separate £92 to register each LPA.
This is general information about how Lasting Powers of Attorney work in England and Wales. It is not legal advice about your situation. What we do and do not do.
Published by Estate Advisory Group