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feasability of being an absentee LL
de1amo
Posts: 3,401 Forumite
İ am considering renting my home out and run away to somewhere sunny!
İ know LL ing is not easy but how difficult would it be if i was absent but left an agent in control for up to a year at a time!--and any rough costings.
İ know LL ing is not easy but how difficult would it be if i was absent but left an agent in control for up to a year at a time!--and any rough costings.
mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
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Comments
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how can we give any costsings when you present a blank sheet of paper?
being a non resident LL (in tax terms ie you live abroad) is in one sense no different to a UK resident LL who insists everything is done through the LA. If you want to be a good LL you would consider using a LA who had control over a sizeable maintenance fund and a high threshold for them to authorise spend so repairs get done quickly
you will of course have to sign up to the non resident LL scheme with HMRC (google it yourself)
your main problem will be finding a reputable LA who won't upset your tenants, start with an accreditied one but even then that does not guarantee their competence.0 -
Rental income (10 months per year) - no idea.
Agents fees - 12-15%.
Maintenance/overheads - no idea.
Tax - no idea.
Set up costs - no idea
Non resident LL scheme - no need to sign up if you use an agent, but agent will have to deduct tax before passing rent to you.
Read this post and all links.0 -
costings --12-15pc agent fee
what rate is tax paid at on rental income?--are all maintenance fees including renewals on the property tax deductable--mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.0 -
I've done this before and paid 12.5% agency fee plus vat. The agent was in regular email contact and I approved all expenditure over £100. Net rent was paid promptly to my UK account.
My building society granted consent to let because I was working abroad. You need to check this with your lender as they may have a different policy including stringent ltv requirements.
Enjoy the sun - where are you going?
BTW our house dropped in value by £40,000 whilst we were away - we'd have been better off selling when we left!0 -
Depends what tax bracket you fall into?! It is income, therefore part of income tax.costings --12-15pc agent fee
what rate is tax paid at on rental income?--are all maintenance fees including renewals on the property tax deductable--
See the HMRC on the link provided for details of tax deductables. ALL the info you could POSSIBLY want is on the post I referred you to. Start reading - there's a lot to learn/consider.
Absolutely no point picking on one or two issues to question. You need to consider all the issues you don't yet realise need considering.0
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