Won't be in our property for 6 months - what are our options now?

ciderboy2009

Presumably your Mortgage provider has given you authority to rent the property?

If you're not planning to use an agent then what are you going to do if something goes wrong in the house, repairs are needed etc? 

What about if the tenant just stops paying the rent?

Also, have you factored income tax into your calculations?

mashmash90

ciderboy2009 said:

Presumably your Mortgage provider has given you authority to rent the property?

If you're not planning to use an agent then what are you going to do if something goes wrong in the house, repairs are needed etc? 

What about if the tenant just stops paying the rent?

Also, have you factored income tax into your calculations?

We have looked into getting consent from them and its straightforward. We can only request the consent once we have found people to rent it to.

Re agent - they don't do anything we can't do ourselves, its not that difficult to call a plumber or someone from abroad. Worst case scenario, we have family who can step in to help in an emergency if needed. My experience of any kind of property agents is not positive and we can do everything ourselves with openrent like reference, deposit schemes etc. I don't think there's anything an agent can do if the tenant stops paying rent, can they? We'd have to take legal action.

Yes have factored the tax in.

Best wishes
Maria

Emmia

mashmash90 said:

Albermarle said:

My partner and I are planning on going abroad for 6 months or so and have a 3 bed flat (on a mortgage so we can't just leave in unoccupied). 

Do you mean you can not leave it unoccupied because you can not afford the mortgage otherwise? 

Also you will have to talk to your home insurers, they charge more for unoccupied properties.

Yes we can't leave it unoccupied as we need to have the mortgage costs at least partially covered

Even if you get a tenant and they move out when you want, there's no guarantee you'll return to a property in the condition you left it in - it might need a full refurb.

Presumably you'll be trying to let furnished too?

sheramber

Are you aware you’re tenant needs to deduct tax from the rental payment and forward it to HMRC unless you  apply to HMRC for permission for the rent to be paid gross.

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

FlorayG

sheramber said:

Are you aware you’re tenant needs to deduct tax from the rental payment and forward it to HMRC unless you  apply to HMRC for permission for the rent to be paid gross.

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

Don't be silly. They are going abroad for a few months, they are still UK citizens and subject to UK tax. That rule is for non-UK people owning rental properties in the UK

saajan_12

mashmash90 said:

Thank you to everyone who has responded. I appreciate the extra advice regarding things we might need to consider like EPC, GSC and EICR (we actually already sorted these last month). We were planning to advertise through OpenRent instead of using an agent. I am also aware that our mortgage provider needs to provide permission which I think won't be an issue and we are aware they will add a small amount to the interest as a result. We are not trying to cover the costs of the mortgage, merely offset some losses and make sure the property is not left unoccupied.

My biggest concern was with the new regulations that we can't get back to living in our home within 12-18 months. Our plans aren't set in stone so I think we can get away with being away longer or staying with family for a couple of months. I think our best bet is to target people who we know are definitely students and will need to leave and will probably just reduce the price a bit. I know that is still a risk but with students at least I think it's less likely they'll want to stay longer term.

Does anyone know when the Renters rights bill will become active? If we were to rent out from Sept 25- Apr 26 for example, will it likely come to effect that quickly?

Fair enough, sounds like you've already incurred some of the costs and have some flexibility to manage some of the other risks. I go via the advertise online and self-manage route too, with some family support to physically attend the property as needed. 

Re Renters Reform Bill, the dates being speculated are ~Summer / Autumn 2025 , so could well affect your tenancy. You'd of course target potential tenants who want a shorter stay, eg students / fixed term workers / someone between houses. However if it comes to it and their plans change, you can only force them out ~6 months + court process after starting in the current rules, or 12 months + court process in the new rules. So would depend if you can stay with family for ~12 months after your intended return date. 

Albermarle

mashmash90 said:

Thank you to everyone who has responded. I appreciate the extra advice regarding things we might need to consider like EPC, GSC and EICR (we actually already sorted these last month). We were planning to advertise through OpenRent instead of using an agent. I am also aware that our mortgage provider needs to provide permission which I think won't be an issue and we are aware they will add a small amount to the interest as a result. We are not trying to cover the costs of the mortgage, merely offset some losses and make sure the property is not left unoccupied.

My biggest concern was with the new regulations that we can't get back to living in our home within 12-18 months. Our plans aren't set in stone so I think we can get away with being away longer or staying with family for a couple of months. I think our best bet is to target people who we know are definitely students and will need to leave and will probably just reduce the price a bit. I know that is still a risk but with students at least I think it's less likely they'll want to stay longer term.

Does anyone know when the Renters rights bill will become active? If we were to rent out from Sept 25- Apr 26 for example, will it likely come to effect that quickly?

A typical student let agreement is from start of September to end of June I think ( although most students will have long gone home by the end of June).