When moving abroad, the first choice is often whether you’d like to save money by managing your property back home yourself, or save stress by working with a property management agency. If you take on the tasks alone, this would include finding tenants, renovating, repairing and more, while a property management agency would do all the hard work but would likely want to be paid 10-15% of your yearly rental income.
Rent counts as a form of income, so you will also have to pay income tax unless your home earns less than £10,000 per year in rent payments.
The Non-Resident Landlord Scheme is a HMRC-run scheme implemented to tax non-UK residents who are renting their property in the UK. If the weekly rent is more than £100, the tax must be handled by a letting agency or the tenant themselves before the landlord gets paid.
There are also differences for those who are going on holiday and for those who are living permanently abroad. If you intend to be a non-UK resident, there are rules about how much time you are allowed to spend in the UK, meaning that managing your own property may not be possible.
You will need to speak with your mortgage provider to let them know your intentions and to check whether you’re breaching any contract terms. If not, great! If so, you may need to check whether you can switch to a buy-to-let mortgage or work out a new solution.
As a landlord, your property must be protected from damages, rent arrears and any other problems that may ensue. This is essential as you won’t be able to check on your property often while away, so do some research.
If you think managing this yourself is too much hassle, or your property management company are not as hands-on as you would like, you should get in touch with ourselves. We not only care for your property on a more personal basis, we can help save on your agency fees and we can also offer your rent guaranteed for up to 5 years!