Living abroad with a rented property in the UK

murphydog999

Hi, has anyone moved abroad and kept/bought a property in the UK to rent? Presumably the key to this is finding a letting agent you can trust? Are there any other complications or must do’s or ‘I wish we had’s’ to be aware of?
Many thanks

theartfullodger

In answer to your question """  Hi, has anyone moved abroad and kept/bought a property in the UK to rent? """ - yes, 10's of thousands, probably more, one of my sons for example.

Do you own a property? Mortgaged? (usually does not permit renting).

What training have you done in being a landlord? And/or landlord/tenant law - there are more than 100 Acts or regulations governing this in England . If none I suggest you don't start until you have done so. Get something wrong and you might be unable to evict tenants.

Even with an agent the landlord is ENTIRELY responsible:  Yes your agreement with agent may state they do certain things but if they fail wat you gonna do? Sue, yet they've disappeared, with the rent money (and all paperwork). It happens.

To be a lettings agent in England requires no qualifications (at all), no training and no criminal records check.  The whole office could be all ex-prisoners on early release from fraud and GBH. Literally: Legally.

Do you have the financial and emotional reserves to cope with the tenant-from-hell (or agent-from-hell)?? Been a landlord since 200: Most years I make money, but not always.  There is more tax to pay (CGT & Income tax on rent, yes even if abroad.

Which country - eg Wales, NI?? The law is different in each of the four nations.

Good luck...

Brie

How will you be paid rent that is owed?  Unlikely you'll be able to have a UK bank account so will need to make arrangements to have the money transferred to your account overseas.  Not an impossible thing to deal with but one more hassle.

theartfullodger

Why do you think expats can't get a UK bank account?  

SDLT_Geek

murphydog999 said:

Hi, has anyone moved abroad and kept/bought a property in the UK to rent? Presumably the key to this is finding a letting agent you can trust? Are there any other complications or must do’s or ‘I wish we had’s’ to be aware of?
Many thanks

Do not forget the issues about deduction of income tax from the rent at source: https://www.gov.uk/government/publications/non-resident-landord-guidance-notes-for-letting-agents-and-tenants-non-resident-landlords-scheme-guidance-notes/what-the-non-resident-landlords-scheme-is

RAS

Some banks are off-loading clients who have non-UK addresses. Looks like those with US connections because of the compliance issue.

Of rather more importance is that you need to registered with the HMRC. Either you get a compliance certificate or your EA, or tenant, has to deduct income tax before sending money overseas.

Do you have good established relationships with trades and handy people who can service your property? Tenants get stroppy if they have to wait after reporting a repair the same time that a houseowner would tolerate.

You need a UK address for the serving of notices and the person receiving it needs to know how to respond.

And landlord requirements are different in different parts of the UK, with additional licensing requirements in some council areas.

And don't expect to make a profit. Do you have enough resources to cover say 9 months non-payment of rent and a replacement boiler?

propertyrental

Read these, and read ALL the links within each thread.

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Post 9: Letting agents: how should a landlord select or sack?

theartfullodger

RAS said:

.................

Of rather more importance is that you need to registered with the HMRC...............

Any landlord, especially living in another country, who does not register with HMRC needs his head examining.  Not a body you want treating you with more than the usual suspicion.

murphydog999

Ok, thanks for all that, doesn’t sound like there are many upsides!

Jemma01

murphydog999 said:

Ok, thanks for all that, doesn’t sound like there are many upsides!

If the house is fully paid for, and will be vacant, I disagree.

Like @propertyrental said, read about it and see what works and what doesn't. Everything needs to be researched, including how much you think the rent will be, how much the tax will be, how much the agenct will take, average expenses on rentals, etc. just like any other investment.

All my siblings and father are landlords, and do everything they need to do to be compliant. The current rental I'm in is managed by an agent, I just had an issue with no hot water, although it took 11 days, the agent managed it end to end. Of course, it means you need to pay them more for that, but better than leaving the property empty. My brother works abroad, he has a bank account here, rent is paid to that account and self assessments are filed online to pay for taxes. HSBC has no issue with you keeping your account open in the UK while working abroad. Just put your parents address to manage your posts if they are OK with that. The agent will need a way to communicate with you, email should be ok nowadays (it's becoming like a text message!).

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" Can I keep my HSBC bank account open if I move abroad? 

Yes. In fact, if you already have an HSBC account, you'll be able to set up an international account in more than 30 destinations before you move. The annual account and opening fees will be waived for HSBC Premier customers who maintain the minimum balance in just one of their HSBC accounts. If you think you'll eventually move back, keeping your local account active will continue to build up your credit history so you don't have to start from scratch again"