When you are moving abroad, it’s common to sell your house and use the money to buy a new one. Some people choose to move abroad temporarily for work or study, and it’s those who want to rent out their house for others to enjoy while they do that. Even when you do decide to move abroad permanently you might want to keep hold of your home and rent it out to use as a second income. There are a lot of factors to take into consideration before you make this decision, though.
If you have tenants to move into the house before you leave, you can contact someone to get an idea of your tax implications for moving and enjoy the extra income. Things are a little different if your house is standing empty before you move, and there are plenty of factors to consider if you do decide to rent out your house after you’ve moved. So, with this in mind, here are some of the things that you need to take into consideration.
- Managing The House. When you move abroad, everything from the cost to the timezones can make it difficult to manage a house, which is why you need a property management company to do it for you. Not only will you get the help you need to manage your tenants, but you will be able to trust that your property is being looked after. You have a choice whether you use a professional company or you ask a family member to do it all for you, but you should think about the costs and your budget. It’s nice to know that you have tenants who have somewhere to ask when there is a problem, and it’s even better to know that you have a professional on your side when it comes to your budget and the management of the property in general. Interview several before you choose, though – you want to ensure that you can trust the person you leave in charge of your house.
- Taxes. As we mentioned, you should check your taxes for the country you’re in. If your rental income is high, you may be liable to pay tax on it and the best thing that you can do is find out whether you should be paying extra tax on top of the country you are in. There are some places that have tax agreements with other countries, so check with your local government as to whether you should be paying taxes in your country and the place you’ve moved to on your rental income.
- Residence Status. Did you know that your tax residence status has to be considered when you are renting your home while living abroad? There are very strict rules about how much time you’re allowed to spend in the UK when you are a non-resident now. You may not live in your home country, but that doesn’t mean that you’re a non-resident so you have to check so that you are allowed to come back and forth as you please.
- Creating An Income. When you take the time to go abroad, you have to make sure that your rental income will cover all of your expenses. The money you pay a property management company, the money to cover house insurance, any mortgages still on the property, and the management of the boiler, etc, all have to be considered in what you charge for rent. You should also ensure that you include the tax that you may have to pay on the property to make it easier. It’s up to you to research the average cost of rent in the local area, too, as this will matter when it comes to what you charge for rent. The worst thing that you could do is end up making a loss on this place, and if you won’t get enough coverage for everything, it may be worth selling up.
- The Mortgage. Among everything else to consider, you must know how to manage your mortgage. Contacting your mortgage provider to tell them you are moving abroad for a while is important, and this should be the first thing that you do because if you don’t meet the requirements of your mortgage, you could end up with a repossessed house. It’s important not to breach this if you want to keep your home and it’s why you should check first.
If you do decide to sell your house, you should make sure that you use the appropriate channels and advertise properly – doing it while you’re in the country is easier, too!