While renting out your property is a great way to generate a passive income, being based abroad can make the task somewhat challenging. The secret to success lies in how you decide to manage your property.
Here are some tips to overcome the physical distance and make the process easier for yourself and your tenants.
1. Set realistic goals for your property
It’s important to remember that not all of our tastes are alike. Whilst you may consider your property to be deserving of a high rental, others may have a different opinion. Make sure what you are charging is realistic and reflective of the property, its surroundings, and extra offerings.
If you are wanting to charge higher rent, think about adding in some additional intangible add-ons, like wi-fi, air conditioning/heating, or other assets mentioned in our previous blog post.
2. Remember your insurance, liabilities, and tax
As a landlord, your property must be fully covered before you leave the UK. Your insurance cover should always include:
- Buildings and contents
- Malicious and accidental damage
Something you should consider investing in before welcoming your first tenant is legal liability cover. It will protect you as the homeowner if anyone is injured on your property.
If you rent your property out in the UK, you will need to pay tax on the rental income, being an international landlord does not exempt you from this. If you live abroad for 6 months or more per year, you are automatically classed as a ‘non-resident landlord’ by HM Revenue and Customs (HMRC). Note that if you are only outside the UK temporarily (less than 6 months), you are not classed as a Non-Residential Landlord.
3. Hire a reputable property management company
Managing a rental property whilst abroad requires good time management and patience. Property management tasks are always ongoing and require your input such as dealing with repairs and regular tenant requests.
If you have a busy lifestyle it may be best for you to hire a professional property management company to oversee these tasks on your behalf. A recommended company is always preferable as you will need to put a great deal of trust in them to manage your property effectively.
Here at London Shared, we provide the simplest, most stress-free way to rent out your property in London. As your dedicated property management company, we will guarantee your rent, furnish your home and find professional tenants to look after it.
But how does it work?
We lease your property directly from you and sign a fixed-term commercial contract with you (usually 3-5 years). We then take charge of your property, effectively becoming your tenant. During that time, we pay you a guaranteed rent, every month, regardless of the property’s occupancy.
4. Visit your property as often as you can
Whether you hire a property company or not, it is always a good idea to visit your property as often as you can. This is because you, being the homeowner, are more likely to pick up on finer details that require attention or fixing.