Being a landlord....&.... letting through agent

Alias_Omega

N79 wrote: »

As you will be non resident you need to register as a non resident LL with HMRC otherwise your Ts or your agents are obliged to deduct 20% of the rent at source and pay it direct to HMRC.

No,

I will be a UK Resident, just not in the uk and will be paying Tax & NI on my income. Also we will receive working tax credits, child benefit, child maintenance.

I am in the Armed Forces, so ill be in a little bit of england, but half way round the work. Still pay taxes etc.

(My signature gives it away a little)

N79

Alias_Omega wrote: »

No,

I will be a UK Resident, just not in the uk and will be paying Tax & NI on my income. Also we will receive working tax credits, child benefit, child maintenance.

I am in the Armed Forces, so ill be in a little bit of england, but half way round the work. Still pay taxes etc.

(My signature gives it away a little)

Just because you are paying UK Tax and NI on your salary does not mean you will remain UK resident for tax purposes. Unless you are being posted to a part of the UK then, if you are absent for an entire tax year, you will be classed as non resident and need HMRC permission to receive gross rent.

Being a Crown Servant does not change this tax requirement.

G_M

What happens to council tax upon us vacating the property?
What happens to the water bill upon us vacating the property?
What happens to the utility companies upon us vacating the property?

I always write letters, in the new tenants name(s), addressed to the council, water, gas, electric, phone etc people, plus meter-readings, agreeing to take over the contracts from the tenancy date.

Then I get the tenant to sign them on moving-in day, give him a copy, and take away/post the originals. That way I know
a) I'm not liable any more
b) he IS liable

Depends a lot on your letting agent's procedures - ask them!

As tbs624 asked - how did you choose your agent? They vary a lot both on cost AND competance. A poor agent, esp if you are abroad, can cause more problems than a tenant!

Are they part of a professional body?
Did you ask lots of questions?
Did you get written confirmation of what they will do (not just a verbal 'oh yes, we'll inspect every 6 months' etc)
Have you spoken to any of their other landlords to get references?
Have you rung them, posing as a prospective tenant, to see how they respond?
Do you know what costs they put on their tenants (these can be high and really p*ss tenants off - and who suffers if the property stays empty or the tenant walks out after their 1st 6 months because of a LA's 'contract renewal fee')

Oh - good luck with the letting!

And with your overseas service.

PS - just a personal view but I would never let to friends/relatives.

Alias_Omega

N79 wrote: »

Just because you are paying UK Tax and NI on your salary does not mean you will remain UK resident for tax purposes. Unless you are being posted to a part of the UK then, if you are absent for an entire tax year, you will be classed as non resident and need HMRC permission to receive gross rent.

Being a Crown Servant does not change this tax requirement.

It would be good if i wasnt a uk resident, as i pay about £4000 a year in Tax & NI.

They can have there 20%, and ill keep the Tax & NI contributions..

Alias_Omega

G_M wrote: »

As tbs624 asked - how did you choose your agent? They vary a lot both on cost AND competance. A poor agent, esp if you are abroad, can cause more problems than a tenant!

Are they part of a professional body?
Did you ask lots of questions?
Did you get written confirmation of what they will do (not just a verbal 'oh yes, we'll inspect every 6 months' etc)
Have you spoken to any of their other landlords to get references?
Have you rung them, posing as a prospective tenant, to see how they respond?
Do you know what costs they put on their tenants (these can be high and really p*ss tenants off - and who suffers if the property stays empty or the tenant walks out after their 1st 6 months because of a LA's 'contract renewal fee')
QUOTE]

The letting agency came through recommendation from a friend who in the next city along has a few flats through them. The fee's in the area change between 10% & 12.5%.

I guess its a case of walking around to see what the rates are, who has the most properties in the window, and the most let.


One thing i did not agree was the take on fee.

If the tenant takes our house, we lose £175 +vat, the tenant has to pay £80 for credit checks etc.

There isnt a fee for extending past 6 months.

I agree that the £175 is to the price for advertising, checking in, inventory but alot of cash for not doing alot.