When moving abroad, many expats prefer to keep ownership of their primary home in order to generate an income by renting out their UK home.
If you are moving abroad, or maybe you’re already a non-UK resident, and are considering renting out your home, there are a number of factors you need to take into consideration, both now and in the future.
Managing your property and tenants
When renting out your home, you have a choice about whether you manage the property yourself from abroad, rely on friends/family to manage the property or find a property management agency who can manage your property for you.
If you choose to manage your property yourself, while you can save considerable costs, it can be considerably stressful. Things which you’ll need to consider include finding/replacing your tenants, being able to manage any repairs, being mindful of your tax residence status by returning home to manage your property.
By choosing a friend or family member to help you rent out your home, you are placing the responsibility and stress across a relationship which can cause tension. They may not be capable of effectively managing your house, and this could lead to you having to manage the property anyway.
The final option is to find a managing agent who is skilled in managing the property. Typically the agency will charge a fee of between 5% and 6% of your rental income over the year in exchange for offering an intermediary service which ensures that the property is well maintained, there are tenants and also that rent is collected in a timely fashion.
· Inform your mortgage company that you are moving abroad
· Choose a reputable agent to manage your property
· Choose a currency transfer specialist for the rental income
. Consider taking out landlord insurance
· Be aware of the tax issues
If you have questions with regards to have to rent your home when you live abroad, please contact Pelin Martin on 0208 994 73 27 or on firstname.lastname@example.org – www.bluecrystallondon.co.uk