CONSIDERING A NEW LIFE AS A LANDLORD?
Some things you need to know…
If you’re considering a new life overseas but you own property in the UK already, you’ll have two options to consider.
First of all you could sell your home, releasing a considerable amount of equity which you can either use to purchase a property abroad or invest in a savings account, which – when combined with a pension – might pay you enough in interest to cover your rent and be enough to live on.
The other option is to let your current home and then use the rental income to cover your living costs overseas – perhaps even saving enough over time to be able to consider purchasing a new home in the sun once you’ve had a bit of time to shop around and get a feel for the lie of the land.
New Build in Oludeniz area, S.W.Turkey
CONSIDERING A NEW LIFE AS A LANDLORD?
Naturally, whether you choose to buy immediately or later on, we’re here ready and waiting to help you choose a property to suit your budget in Portugal, Spain,Turkey or Greece.
But, if you choose to let your current home in the UK, you need to be sure you’re on top of all the responsibilities which come with becoming a landlord.
Here are a few things you should probably know:
- If you rent your property, any insurance policy you may have had before could now be null and void. Have a chat with your insurer and, if necessary, shop around for a new one. Meanwhile, renting can also have an impact on your mortgage agreement. It might be an idea to check on that too.
- An increasing number of legal obligations have been placed on UK landlords over recent months and more are in the pipeline. Safety has been a particular focus while landlords should also be placing any deposits they receive from their tenants in an approved deposit scheme. Make sure you understand everything you’re supposed to do by law.
- Did you realise any income you earn from renting your property in the UK is taxable and needs to be declared? Also, should you sell the property at a later date, it’s also subject to Capital Gains Tax.
- Have you considered an inventory? There are companies who will help you to compile one but there is a cost involved. Without one, you will have no real proof of what you own inside the property so it’s not really a good plan to do without. If anything goes missing, you’ll have no real comeback.
- Finally, it’s probably a good idea to compile some form of tenancy agreement and get anyone who rents your home to sign it. If you don’t want pets in your house or your tenant to make their own bit of extra income by offering a spare room on Airbnb, you probably need to have some sort of written agreement to say so.
CONSIDERING A NEW LIFE AS A LANDLORD?
With proper preparation and perhaps a little help from an agent, letting property can be hassle-free – particularly if you find a steady and reliable tenant prepared to take care of your house or apartment as if it was their own. If you take the time to build a good, working relationship with them, then renting is certainly an option worth considering.
But, before you do, it’s best to check out your obligations as a landlord rather than finding out when things go wrong.
Good luck in whatever you choose though – and don’t forget we’re here to help if you need us…or, you can contact us through via our media page.