Here are our top tips for letting your property when relocating abroad
1. Do your research
2. Make your home “tenant-ready”
3. Furnished or unfurnished?
4. Communicate your plans with your bank
5. Put landlord insurance in place
6. Should you hire a property manager?
Being a long distance landlord has its own set of unique challenges which may require the help of a professional property manager who will manage every aspect of renting out your home from finding tenants to carrying out repairs. A property manager can take the stress out of the whole process and give you peace of mind, although it does come with a fee.
If you want to maximize your income, you can rent your house on your own; but there are things you need to consider. Although you might be living half way around the world, you are still responsible for your tenants and managing the property. As the landlord, it’s your responsibility to get repairs done in a timely and effective manner. Find a reliable repair person before you move, and develop a relationship with them. It is also helpful to have a family member or close friend serve as a contact person for the tenant should any issues arise.
7. Understand the tax implications
When you rent your house, this will be classed as income and therefore you will most likely be required to pay taxes in your home country. There are certain costs which can be offset against your income to reduce your tax liability, and you may have a personal allowance which means you can earn a certain amount before being taxed. In addition, if you decide to sell your house at any time, you may be subject to capital gains tax as well. Your income may also be subject to tax in your new country of residence.
Therefore, before making any decisions, you should speak to a qualified tax adviser so you fully understand what the requirements and obligations are in your home country.