Renting out your home while living overseas is a cost-effective way to bring in extra income while making sure your home is also being cared for.
However, being both a landlord and an expat can be tricky. We have rounded up a helpful guide highlighting the key factors that need to be considered when renting out your home while living overseas.
Managing your property and tenants
Being on the other side of the world, the first decision you will need to make is who will be managing your property and tenants.
Although it is possible for you to manage the property yourself, finding a property management agency in your home country can make life much easier. They will take on those time-consuming and often stressful tasks of finding tenants, drafting tenancy agreements, checking on your property, coordinating maintenance, billing and can also keep you up to date with any tenant news.
What questions should I ask?
It is essential to find a property agent that you trust, and you can do this by asking the following questions:
1. How do you find and evaluate potential tenants?
You need to have certainty that the tenants being placed in your home are going to look after it. At London Shared, we have built relationships with well-known companies, relocation agents and recruitment consultants who approach us to find accommodation for their staff.
References from previous landlords and employers are very important, but we feel that gut instinct is even more vital. Someone can have impeccable references however if we do not feel they are suitable we will not accept them.
2. How often will my property be inspected?
You need to have peace of mind that everything in your home is how you left it. At London Shared we conduct inspections every six months (though our cleaners attend weekly). For our overseas Landlords we can either send on photos of the inspection or conduct it virtually with you, so you can see first hand that your property is being looked after.
3. How will my properties maintenance be handled?
It is the property managers responsibility to do most of the legwork when it comes to maintenance. At London Shared, we will always provide you with a quote prior to carrying out any work and will arrange access, so you do not have to get involved.
Want to learn more? We have an informative page dedicated to frequently asked landlord questions.
Tax considerations when renting out your home
Anyone who rents out a property in the UK but lives abroad for 6 months or more of the year must comply with HMRCs Non-Residents Landlord Scheme.
Through the scheme, if weekly rent exceeds £100, tax must be deducted from the rental income by either the letting agent or, if there is no letting agent, the tenants themselves before the rent is paid to the landlord.
Check your mortgage
If you have a mortgage on the UK home you intend to rent, it is essential that you contact your mortgage provider and inform them about your plans before you make any final decisions.
Moving abroad and renting your home could see you in breach of your loan agreement, which could see your home repossessed.
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
Currency and foreign exchange
Over recent years currency fluctuations have meant that expats receiving an income by renting their UK home have seen their rental income vary month to month.
Most rent will be paid in sterling into a UK bank account, while landlords typically need to access the money in a different currency. If you are considering renting your UK home, this is an important factor to consider.
London Shared has over 13 years’ experience in property management. We take care of the ins and outs of tenancy management. We become your tenant and take the stress off your shoulders. So, you can focus on other matters.
If you are considering renting out your home and the thought of managing it yourself is over whelming, please get in touch with us by either emailing us or give us a call on +44 20 7610 9004.