If you are considering moving out of your home, but wish to let it out there are many factors that you should consider to make an informed decision and ensure that all your legal rights are in place. It could be that you need to move abroad for work and wish to keep your property here in the UK, or you are moving in with a partner. You may have inherited a property and don’t want to sell, instead using it as an investment opportunity. Letting out your home can seem daunting but it is also a great opportunity for raising some revenue as an additional income. Here are our top tips for letting out your home.
Changing your mortgage
You will need to change your mortgage (if you have one) to a buy to let arrangement with your mortgage provider. As a result, your repayments may increase and you may need to complete a new application which would tap into your credit rating. Look up your present agreement and read the small print to assess what, if any, fees you would occur from switching your mortgage policy. View online mortgage advisor for advice on switching to a buy to let mortgage.
Allocate a letting agent
You don’t want to be bombarded with calls from your new tenants of how to work the heating or stating that something has broken at 2 am. Worse still, you wouldn’t want your old neighbours complaining about house parties or rubbish in the stairwell. To alleviate some of the stress of being a landlord, its best to allocate a letting agent who can take over these things and keep your tenants in check. They will also conduct interviews prior to letting out the property to make sure you get the right type of tenant who will respect and care for your home. They will also keep you right in the way of all the paperwork and documentation you will need to arrange for letting out your home from landlord certification to electricity reports.
Paying landlord tax
The accounting process for Landlords can be confusing and time confusing and often puts people off from becoming landlords. You will need to keep details of rental income throughout the year as a registered Landlord, as well as evidence of expenses. It’s really important to ensure your records and accounts are kept up to date to make the process of returning your tax form easier and simple as HMRC require a declaration each year of income from property letting. However, you can also claim for expenses such letting agent’s fees and interest on property loans if you have a residential property. Ease the burden by appointing an accountant who specialises in landlord tax – they will keep everything right so you do not have any nasty bill to pay unexpectedly. Using an accountant for this purpose will ensure your records and tax administration will be kept up to date.