New Landlord - Advice Please - Moving to Australia

movinghelp

Well thanks for the tough love..I've reduced again by 5% and instructed the estate agent. I will still want to meet the tenants in person even it they are shown around by the agent. I'm not complaining just keeping the thread updated in case its useful.

Yes its in keeping with similar rentals in the area. Certainly the same or a bit cheaper. Apparently a lot of people are waiting until after the referendum although I can't really understand why.

movinghelp

So we were meant to do a viewing yesterday but they didn't turn up (via spareroom). Agent is bringing someone today.

Had two more requests via openrent and another on spareroom. One is for two students though doing a postgrad which I'm not keen on.

Another is for a couple who want to share with a third person. My concern is does that make it a HMO? https://www.gov.uk/private-renting/houses-in-multiple-occupation

booksurr

movinghelp wrote: »

Another is for a couple who want to share with a third person. My concern is does that make it a HMO? https://www.gov.uk/private-renting/houses-in-multiple-occupation

it depends on size of your property and who is in it, as shown on the .gov website. sadly however the "great switch-over" over all gov websites to .Gov.UK has resulted in very significant dumbing down of the content of each page, so it misses the very basic fact that the question is do you need a licence?

1. mandatory licensable HMO - a property comprising 3 storeys with 5 or more households

2. possible licence HMO depending on whether the respective council has enforced additional/selective/elective" (or whatever term they use) licensing - the baseline if they have being any property with 3 or more tenants forming 2 or more households

so the only way you would have an HMO with only 3 people there is by checking on your own council website's rules are re additional licensing in that council area

movinghelp

Thanks for that I've had a look at the council website and it says that three people in two separate households wouldn't be classed as an HMO in our postcode but it would on a couple of very nearby roads which seems odd. Either way I would rather just chase 2 people for rent than 3.

G_M

I think also you are planning ahead too much.

Many (most?) tenants search and move in fairly short timescales. Fewer will look 2 months ahead and view, far less sign, for a property that far in advance.

As the timescale shortens, then providing the price is right the number of enquiries will increase.

Lioness_Twinkletoes

Incidentally, as your property is an ex LA and therefore the Council is (presumably) the Freeholder you will need to let them know of an alternative address in the UK for legal notices, S20 consultation documents, Service Charge notices etc. This is in addition to notifying Council tax as often the two departments are entirely separate and don't communicate.

booksurr

movinghelp wrote: »

Thanks for that I've had a look at the council website and it says that three people in two separate households wouldn't be classed as an HMO in our postcode but it would on a couple of very nearby roads which seems odd.

Far from "odd". The introduction of "selective" HMO licensing was to give a council real flexibility in being able to manage their own locality. Therefore they are free to zone as they wish. HMO's (stereotypically) lead to planning blight as they create an area dominated by (often transient) multiple households meaning the character of said area "suffers". For example, read this post where the owner of a non HMO property is now experiencing real problems selling their own home!
https://forums.moneysavingexpert.com/discussion/5468782

Hence the need to introduce planning laws to enable councils to "control" the extent of HMO in a given area.

Lioness_Twinkletoes wrote: »

Incidentally, as your property is an ex LA and therefore the Council is (presumably) the Freeholder you will need to let them know of an alternative address in the UK for legal notices, S20 consultation documents, Service Charge notices etc. This is in addition to notifying Council tax as often the two departments are entirely separate and don't communicate.

whether it is, or is not, ex LA has nothing whatsoever to do with OP's liability to declare their rental earnings to HMRC

The non resident LL scheme applies to anyone letting a property when they are (err) NON RESIDENT IN THE UK.Such a LL has to meet the requirements of the Housing Act as applicable to any LL - ie provision of an address (within the UK) for the serving of notices otherwise no rent whatsoever is payable.

Lioness_Twinkletoes

booksurr wrote: »

whether it is, or is not, ex LA has nothing whatsoever to do with OP's liability to declare their rental earnings to HMRC

My comment has nothing to do with the HMRC.

movinghelp

Making better progress now. Had about 25 enquiries and have done 6 viewings with another 4 scheduled before Fri and a couple of no shows. Hopefully we'll have someone before end of June.

happylucky

Get your depreciation schedule drawn up before you leave (ato deductions much more generous than hmrc ones these days, but you need your paperwork in order if claiming do an overseas property).

If you're working in oz, you'll likely want to maximise these as your hmrc liability (likely zero or small whilst the personal allowance for non residents remains) won't cancel out your ato/oz liability even when the double tax rebate is applied.