In Hungary, there is a substantial difference between a care home (idősek otthona) and a retirement home (nyugdíjasház). Care homes are strictly regulated, while retirement homes are free from any state control.
The difference between the two types is that only those people who need health care are entitled to a place in a care home, as confirmed by the relevant authority), while a retirement home can be used by any elderly person who uses the apartments under a lease or use right.
Establishing and operating retirement homes can be a profitable business, while the strictly controlled care homes rarely operate profitably, even if they have a state subsidy.
Therefore, in this analysis we focus on retirement homes. The lease of apartments in a retirement home is governed by the Act on Leases (LXXVII of 1993).