Letting your property while living abroad is the ideal option for many short-term expats or those who are unsure as to how their move overseas will work out.
According to Ian Potter, Operations Manager at the UK’s Association of Residential Letting Agents (ARLA), letting your property while living overseas is a great way of reducing some of the stress associated with making a move abroad:
“Many people who work or retire to another country choose to let their UK property to tenants.”
“This is a smart move for many reasons, but as ever it is important to ensure that everything is done correctly. The last thing a family needs before or shortly after an international move is more stress!”
“Using a professional letting agent and following our advice above should make sure anyone about to embark on a new life overseas can be safe in the knowledge that their UK property is in good hands.”
ARLA recently issued five great tips for expatriates who are interested in letting their properties while living abroad:
1) Take Timings Into Consideration
In the current economic climate many countries are observing a slow in the rate at which residential properties are being leased. It therefore may take some time to find a suitable tenant. ARLA advises commencing the leasing process at least six months before you are planning on moving overseas so that you will give yourself enough time to find someone to rent your property and won’t be required to make any rushed decisions.
2) Ensure The Property is in Good Shape
If necessary decorate and refresh your property so that it is clean, modern and of a sufficient quality to attract tenants. This will increase the rental value of your property and will also improve your chances or renting it quickly.
3) Consider Leaving Your Furniture Behind
Leaving your furniture behind will mean that you can lease your property as a furnished unit and will also reduce any shipping or storage costs. Ensure you take a full inventory of any items you leave and include a clause in the contract covering their use.
4) Use a Professional Letting Agent
Given the fact that you will be living abroad, you really will need a locally-based agent who can act on your behalf throughout the duration of the tenancy. Not only will they be able to manage the letting process they will also be able to manage day-to-day issues with the tenant on your behalf. Ensure that you use a leasing agent or real estate agent that has appropriate qualifications and certification in your home country.
5) Communicate Your Plans With Your Bank and Insurers
It is crucial that you inform your mortgage provider that you will be leasing your property while you are living overseas as this may have implications for your mortgage agreement. Consult a mortgage lender and seek advice on the best possible method of renting your property.
In addition to this you will also need to inform your building’s and content’s insurers that you will be leasing the property. You may be required to draw up a new agreement that covers the tenants in your absence.
6) Understand The Tax Implications
Even if you are living abroad there is a high chance that you will be required to pay taxes in your home country on any earnings that are generated while you are overseas. Speak to a taxation specialist in order to fully understand what the requirements and obligations are in your home country.
