Renting Out Uk Property While Living In Thailand

[sidjameson]

I have zero experience, but some cash and I am thinking of buying a house in uk and letting an agency handle it. Maybe a student let. The rent would be my sole income for living in Thailand so obviously the fear of fudging up is there.

If anybody would like to give words of wisdom I would love to hear.

[jingjingna]

It would be better if you could get a trusted family member or friend manage it while you are away. Student let..they will trash the place, why not just rent out the place (house) to a working family?

[steve187]

depends where the house will be, some councils will rent from you and guarantee the rent, also armed forces sometimes rent for families, but if renting on the open market get a good company to rent out for you, A friend of mine rented out his house, he used a more expensive company but they got a good tenant, at £150.00 more per month than the others in the area, this extra money more than covered the more expensive companies higher %, and he gets a better service from them, they get all their work from word of mouth, no advertising, Buy in an area good for renting.

[naammanow]

As mentioned before get a good professional company to handle not only your tenant but all the fare of managing your property. You will live here and cannot afford or are willing to get up and down to handle matters. Any money spend on the estate agent that handles your affairs will be more then worth it. Don't be blighted by agents that seems good but rip you off when you're abroad.

[rangers]

I have rented my house out for the last 7 years. Here is my advice. Get a good agent even if they cost a bit extra, you will sleep better here. Letting is normally a min 6 months otherwise setting up costs eat into your profit too much. You can specify if you will alow pets, smokers etc. Put a few bit's of furniture in then you can rent it out as furnished, that way you can claim 10% ware and tare against your profit for tax purposes. Remember every day the house is empty between lets you will be liable for council tax.

Do not consider letting out via the council or "social security let's". You agent will vet your potential tenants and should ask them for ref's maybe contact their empolyer etc. Good luck.

[MaprangHolmes]

I have rented my house out for the last 7 years. Here is my advice. Get a good agent even if they cost a bit extra, you will sleep better here. Letting is normally a min 6 months otherwise setting up costs eat into your profit too much. You can specify if you will alow pets, smokers etc. Put a few bit's of furniture in then you can rent it out as furnished, that way you can claim 10% ware and tare against your profit for tax purposes. Remember every day the house is empty between lets you will be liable for council tax.

Do not consider letting out via the council or "social security let's". You agent will vet your potential tenants and should ask them for ref's maybe contact their empolyer etc. Good luck.

this has to be a joke don't let your home to a council or "social security let's" with the current climate in the UK your comment is not only bigotry it is just dam sight rude you are assuming that all council tenants are bad and that all social security tenants are just as bad don't you think it is about time you came back into the real world

[JAS21]

I have rented my house out for the last 7 years. Here is my advice. Get a good agent even if they cost a bit extra, you will sleep better here. Letting is normally a min 6 months otherwise setting up costs eat into your profit too much. You can specify if you will alow pets, smokers etc. Put a few bit's of furniture in then you can rent it out as furnished, that way you can claim 10% ware and tare against your profit for tax purposes. Remember every day the house is empty between lets you will be liable for council tax.

Do not consider letting out via the council or "social security let's". You agent will vet your potential tenants and should ask them for ref's maybe contact their empolyer etc. Good luck.

I have rented out two houses for severeal years, I am registered as an 'Overseas Landlord' or some simular name ... so I get my rent untaxed and pay later.

Council Tax, well I get up to six months free, if my property is empty ... but it never is for more than a couple of weeks.

Actually I just use a 'find and walk away' with our agent ... they find, take references, deposit to DPS, inventory etc . My son deals with any problems, so I am fortunate. If you have no-one then best to let the agent deal with everything although they will maybe take 12.5% -15% in addition to a finders fee, inventory fee, contract fee etc.

If you supply any furniture then it must have a fire proof lable. You must have an electrical safety check (10 year one) and a gas check every year. You will need to insure the building.

So work out what rent you will get ... subtract the agents fees etc. You will probably need to replace carpets every 3-5 years, redecorate etc .. put a light coloured barber in. Don't forget any repairs will cost you dearly and the agent may/will charge you for checking/organising work.

You would probably do better putting your money offshore and not paying tax. Alternatively I see Bangkok Bank are offering 5% or 5.5% for a three year committment! Of course if property prices rise significantly you may loose out.

Take it from me you won't make much of a percentage profit over the years. I would be very surprised if after all costs you would make 5+% over a few years period. After I pay 40% tax I don't make much more than that ... don't really know why I don't just sell up!

[MB1]

OP, Have a read of the link I'm providing from HMRC, it's a guide to Non resident landlord scheme.

http://www.hmrc.gov.uk/international/nr-landlords.htm

[SantiSuk]

If you are not paying tax in the UK now, because you are non-resident for tax purposes, be careful not to stay in your rented property whenever you go back to the UK. It would likely mark you out as still UK resident for tax purposes and you could find yourself paying UK tax.

[JAS21]

If you are not paying tax in the UK now, because you are non-resident for tax purposes, be careful not to stay in your rented property whenever you go back to the UK. It would likely mark you out as still UK resident for tax purposes and you could find yourself paying UK tax.

You mis-understand a little I think ... I pay a huge amount of tax in the UK ... on my company pension ... on my OAP ... share dives etc ... and on income from my rental properties. The point is that I pay a yearly lump sum tax on the rental income, it's not stopped monthly by the agent ( which I don't have anyway). I am also Non Resident and Not Ordinary Resident.

I haven't been back to the UK in five years, may never go again. But thanks for the suggestion.

[AyG]

If you are not paying tax in the UK now, because you are non-resident for tax purposes, be careful not to stay in your rented property whenever you go back to the UK. It would likely mark you out as still UK resident for tax purposes and you could find yourself paying UK tax.

Where you stay in the UK during visits does not make you deemed resident, provided you stay within the "days per year" limits. However, it would harm any claim to not being domiciled in the UK, which can dramatically affect inheritance tax.

[Darrel]

... I pay a huge amount of tax in the UK ... on my company pension ... on my OAP ... share dives etc ... and on income from my rental properties. The point is that I pay a yearly lump sum tax on the rental income, it's not stopped monthly by the agent ( which I don't have anyway). I am also Non Resident and Not Ordinary Resident.

In that case you should bear in mind that any savings interest earned onshore can be paid gross (if you find the right deposit-taker) and you will have no further tax liability on it. This may make saving a bit more attractive than letting out property. At the moment you can easily get 4.5+% gross for a 5-year deposit.

Since I stopped living in the EU I have moved a lot of money back onshore to take advantage of this, and the better deposit protection. Interest rates are higher onshore also.

[meatboy]

i have posted our experiance in the bkk forum,if y have the money to buy better y put into a fixed bank acc.there is 4.6%on offer over 5years with scot.widows.or y can buy ours at 25%below the last value.see the bkk forum investing topic.if you are a non tax payer y will be laughing all the way to los.

[MichaelJohn]

A lot fo good words of advice already....

I use an agent; they do everything and you can sleep easy - yes it costs a bit more (I pay 5% of rent) but worth it. They organise all services, repairs, credit checks etc, basically you don't need to do anything apart from tell them which bank to put the money in :-)

I'm registered as an Overseas Landlord which helps with tax too.

I get about 5% return p.a. but of course (hopefully) the house is still appreciating in value so that's something when you come to sell it. If you put the money in the bank you'll only get the 5% (if you're lucky), so short term the same, long term a big difference!.

Also, it's a place to fall back on if every you need, or an asset you can use.

[steve187]

A lot fo good words of advice already....

I use an agent; they do everything and you can sleep easy - yes it costs a bit more (I pay 5% of rent) but worth it. They organise all services, repairs, credit checks etc, basically you don't need to do anything apart from tell them which bank to put the money in :-)

I'm registered as an Overseas Landlord which helps with tax too.

I get about 5% return p.a. but of course (hopefully) the house is still appreciating in value so that's something when you come to sell it. If you put the money in the bank you'll only get the 5% (if you're lucky), so short term the same, long term a big difference!.

Also, it's a place to fall back on if every you need, or an asset you can use.

If the Op buys to let, would he not pay capital gains when he sells?

[steve187]

i have posted our experiance in the bkk forum,if y have the money to buy better y put into a fixed bank acc.there is 4.6%on offer over 5years with scot.widows.or y can buy ours at 25%below the last value.see the bkk forum investing topic.if you are a non tax payer y will be laughing all the way to los.

Meatboy could you let me have a link to this thread , i can't seem to find it

[PattayaParent]

If you are not paying tax in the UK now, because you are non-resident for tax purposes, be careful not to stay in your rented property whenever you go back to the UK. It would likely mark you out as still UK resident for tax purposes and you could find yourself paying UK tax.

Where you stay in the UK during visits does not make you deemed resident, provided you stay within the "days per year" limits. However, it would harm any claim to not being domiciled in the UK, which can dramatically affect inheritance tax.

That defence didn't help Mr. Gaines-Cooper.

[london]

"I have zero experience, but some cash and I am thinking of buying a house in uk and letting an agency handle it. Maybe a student let. The rent would be my sole income for living in Thailand so obviously the fear of fudging up is there.

If anybody would like to give words of wisdom I would love to hear. "

Sorry, I just have to ask "why" ?

Problems, as I see them:

1) You have zero experience

2) "some cash" enough that you can adequately maintain/repair an investment in the UK?

3) "thinking of buying a house" more maintenance problems than with an apartment

4) "student let" maybe more tears down the track

5) "The rent would be my sole income for living in Thailand" BIG problem for so many reasons.

There is so much information that you haven't provided that would help people to understand if what you are thinking about is practical or even plausible.

Probably point 5 above is the one that rings warning bells with me. You want to live in Thailand and this is going to be your sole source of income. How much are you anticipating receiving NETT of expenses per month? Remember too, that you will be constantly converting currencies (UK - THAI). This alone has problems associated with it.

What are you going to be doing in Thailand? Are you retired ? I guess that you are much younger, but I may be wrong.

Really, unless you have a substantial amount, why would you put it into a property in the UK, a falling market and one that is likely to fall for quite some time yet, and be reliant on an income stream that you have no experience in ? This is crazy. Sorry, but I can only see it ending in tears.

Think of alternatives:

meatboy has mentioned one: simple bank deposit.

If you are committed in your mind to buy real estate, why not buy an condo in Thailand and rent it out? Cheaper than the UK and at least if there are problems, you wont be 11 hours away. I AM NOT advising you to do this.

Also, what are you going to do with yourself every day?

What about Visa runs?

Financing your accommodation and living in Thailand is not cheap if you want to live with some modicum of comfort. And its not going to get cheaper.

[meatboy]

A lot fo good words of advice already....

I use an agent; they do everything and you can sleep easy - yes it costs a bit more (I pay 5% of rent) but worth it. They organise all services, repairs, credit checks etc, basically you don't need to do anything apart from tell them which bank to put the money in :-)

I'm registered as an Overseas Landlord which helps with tax too.

I get about 5% return p.a. but of course (hopefully) the house is still appreciating in value so that's something when you come to sell it. If you put the money in the bank you'll only get the 5% (if you're lucky), so short term the same, long term a big difference!.

Also, it's a place to fall back on if every you need, or an asset you can use.

we pay 10%+20% vat agents fees of the rent.

[meatboy]

i have posted our experiance in the bkk forum,if y have the money to buy better y put into a fixed bank acc.there is 4.6%on offer over 5years with scot.widows.or y can buy ours at 25%below the last value.see the bkk forum investing topic.if you are a non tax payer y will be laughing all the way to los.

Meatboy could you let me have a link to this thread , i can't seem to find it

i think y already read the posts,[bkk forum][moved back to the uk recently] page4 post86.and a reply.

[Darrel]

I'm registered as an Overseas Landlord which helps with tax too.

How? You still have to declare your rental income and pay the tax due. If the withheld tax is too high then you can claim it back.

[topt]

I'm registered as an Overseas Landlord which helps with tax too.

How? You still have to declare your rental income and pay the tax due. If the withheld tax is too high then you can claim it back.

You can apply to the tax man not to have tax deducted at source - either by the agent or by your tenant who then pay to the taxman. You are supposed to declare this income (minus all the allowances) if it is above the allowance band and then pay tax on it - but it is paid later not before you receive the money. Also I think the agents fees are an allowable expense (may have this wrong) and with the other allowances it can reduce the overall tax you pay.

[Darrel]

You can apply to the tax man not to have tax deducted at source - either by the agent or by your tenant who then pay to the taxman. You are supposed to declare this income (minus all the allowances) if it is above the allowance band and then pay tax on it - but it is paid later not before you receive the money. Also I think the agents fees are an allowable expense (may have this wrong) and with the other allowances it can reduce the overall tax you pay.

I'm aware of that. What I dont understand is why he thinks that being registered "helps with tax". It doesnt, apart from the fact that you can pay it later rather than have it deducted at source.

The final amount you have to pay doesnt change at all, regardless of whether you are registered or not.

[JusMe]

I'm not British but perhaps my Canadian experience will be helpful.

I had a house there that I used sometimes and then rented out. I managed to have a next door neighbour as my agent, so there was always someone close by to see what went on and to organize repairs and maintenance.

Just last summer, I sold the house and invested the money.

That was one of the best moves I've ever made. I now actually have a larger income from the investment return than I was able to get from the rental of the house. I no longer have to worry about municipal taxes, repairs, maintenance, what's going on there and if they might tear out some of the inside, just how carefully my agent is actually watching the place, no financial or emotional worries about the place at all. I don't have to worry about the place being empty and me having to pay utilities, and search about for another tenant.

As I said, this was my Canadian situation, so perhaps doesn't apply to yours. But I'd say save yourself the hassles and invest your money rather than buying property to rent.

[garrfeild]

I have rented my house out for the last 7 years. Here is my advice. Get a good agent even if they cost a bit extra, you will sleep better here. Letting is normally a min 6 months otherwise setting up costs eat into your profit too much. You can specify if you will alow pets, smokers etc. Put a few bit's of furniture in then you can rent it out as furnished, that way you can claim 10% ware and tare against your profit for tax purposes. Remember every day the house is empty between lets you will be liable for council tax.

Do not consider letting out via the council or "social security let's". You agent will vet your potential tenants and should ask them for ref's maybe contact their empolyer etc. Good luck.

this has to be a joke don't let your home to a council or "social security let's" with the current climate in the UK your comment is not only bigotry it is just dam sight rude you are assuming that all council tenants are bad and that all social security tenants are just as bad don't you think it is about time you came back into the real world

I think it is you who needs to join the real world! social security and council tenants are the worse of them all. They'll trash the house, and you won't get as much in rent.

[garrfeild]

From the point of keeping your tax affairs in order, You will need to register with HMRC as a non resident landlord. If they approve you, you will pay your annual tax split in 2 payments over the year. Otherwise your agent or the tenant by law would be obliged to withold 20% of the rent for the tax man.

Which makes sorting out your tax more complicated and you never know if the tenant would actually hand that 20% to HMRC. So it is advisable to get that sorted out once you find a tenant. This will mean you'll need an accountant in the UK, unless you know what your doing when filling a tax return? Remember all expenses are deductable. But depending on the annual income You may find that by the time you reclaim expenses there is not enough left to tax. So its swings and roundabouts unless you have more than 1 property.

An agent is the best way to go for renting out your house, Just make sure they are ARLA registered and reputable.

Good Luck

[PattayaParent]

I have rented my house out for the last 7 years. Here is my advice. Get a good agent even if they cost a bit extra, you will sleep better here. Letting is normally a min 6 months otherwise setting up costs eat into your profit too much. You can specify if you will alow pets, smokers etc. Put a few bit's of furniture in then you can rent it out as furnished, that way you can claim 10% ware and tare against your profit for tax purposes. Remember every day the house is empty between lets you will be liable for council tax.

Do not consider letting out via the council or "social security let's". You agent will vet your potential tenants and should ask them for ref's maybe contact their empolyer etc. Good luck.

this has to be a joke don't let your home to a council or "social security let's" with the current climate in the UK your comment is not only bigotry it is just dam sight rude you are assuming that all council tenants are bad and that all social security tenants are just as bad don't you think it is about time you came back into the real world

I think it is you who needs to join the real world! social security and council tenants are the worse of them all. They'll trash the house, and you won't get as much in rent.

Most of the people I know back home are SS tenants and they have never trashed any place they have lived in.

You are also guaranteed the rent is paid as it comes directly from the SS and not from the tenant.

[meatboy]

there is a problem with ss tenants and ones that claim housing benefit,they will only pay as per person who lives in the property,ours is a 3bedroomed house but the tenant and 2small children can only claim the amount for a 2bed.house the if that amount is less than the rent the tenant has to find the rest.that didnt happen in our case.if the tenant is working and pays the rent agreed that is fine but if they lose their job then thats when the fun starts,you try and get them out and y will find they have more rights than y.if y are not hands on its a flipping nightmare,thats only our experiance.

[patroller]

DSS tenants are high risk, they have all the rights and you the victim landlord will have none. Better to rent to a working person/family although that is not always fail proof. When assessing a potential tenant go with gut instinct it's a valuable tool. Another tip is to look up to see if they have a Facebook page, if the settings in their account allow anyone to look in without "becoming a friend" you've hit the jackpot. This can and will give you the true insight into their characters, lots of <deleted> and blinding messages and paralytic drunk party pictures then drop them quicker than a red hot potato.

Renting property in the UK is not easy if your tenant becomes a problem tenant. Blatant lies about late payments, not retuning calls or text messages, property damage and general unpleasantness all round can really get one down. Serving section notices is a costly and time consuming process and many tenants know this whilst sitting in your property not paying rent with their two fingers up, there is absolutely nothing you can do until a court order is issued usually months after a section 21 notice has been served and all costs down to you, the landlord.

I'm not tarring all tenants with the same brush there are some wonderful tenants out there. Just highlighting the unfairness of non paying problematic ones where the landlord becomes seriously out of pocket and where the law is totally and unforgivably on the tenants side.

[joker7]

Actually garfield Im a non resident and my accountant has advised me to defer any tax payable until the end of the tax year. So you can actually claim all rental income throughout the year un-taxed and then when you submit your tax return you work out everything from there.

I claim against my mortgage interest + all repairs etc. So my allowable taxable income actually increases every year and rolls over to the next year. Only to the point where my income/rent does not exceed this amount. Only then do I start to pay tax on income/rent.

During the end of this cycle and when you start to pay a small slice of tax you can always restart the cycle by buying another rental [another mortgage] so you then claim against that to avoid paying any tax and on and on and on and on.