How to Rent Privately as a Non-Resident Landlord
- Better Covenant Properties
- Dec 13, 2023
- 3 min read
Updated: Dec 14, 2023
Are you living outside of the UK as a non-resident landlord, wondering how to rent your property privately? This article will give you a few tips you may not have considered to rent your property out with little hassle.
Navigate to where you want to go:
Are you a non-resident landlord?
You are classed as a non-resident landlord if you receive UK rental income from a property in the UK, whilst your 'usual place of abode' is outside of the UK.
Rent your property through a letting agent
A non-resident landlord can let their property through a letting agent, who will be responsible for finding tenants, collecting deposit payments, rent payments, and managing the upkeep of your property. The landlord will incur management fees and sometimes finders fees (for finding tenants for the property).
Non-resident landlords can rent privately by going directly to the tenant
In some cases, a non-resident landlord can rent directly to the tenant. However, the tenant would need to be enrolled into the Non-Resident Landlords Scheme (NRLS). Most private tenants will opt out of this type of arrangement, favouring a UK-based landlord to avoid the hassle of being a part of the scheme. As a non-resident landlord, you want to find a tenant who is willing to sign up for and operate the scheme for non-resident landlords.
What is the Non-Resident Landlords Scheme (NRLS)?
The Non-resident Landlord Scheme (NRLS) allows the HMRC to tax the UK rental income of people whose ‘usual place of abode’ is outside the UK.
The best way to rent your home privately is to a trusted and reliable company
If you are living outside of the UK and desiring to rent your home privately instead of through a letting agent, another option is to rent to a company.
The company will pay the rent directly to you, the landlord, whilst also signing up to and operating the Non-resident landlord scheme to comply with government legislation.
As they are operating as a company, signing up to the necessary schemes and filing the relevant accounts or taxes would form part of their usual tasks, therefore renting privately to a company is usually an easier route for the overseas landlord.
As a non-resident landlord, what kind of company can I rent privately to?
There may be various companies that would rent a property. They might use it for filming or photography, or maybe accommodation for their staff. An ideal type of company to privately rent your home to would be a Property Management company that regularly specialises in rent-to-rent agreements.
This type of property management company will: (1) ensure your rent is paid regardless of whether or not the property is tenanted, (2) operate the Non-Resident Landlords Scheme, and (3) source reliable and appropriate guests to stay in the property, whilst keeping it well maintained, regularly cleaned and professionally managed.
Essentially, renting your home privately to a Property Management Company will provide you with all of the benefits that a letting agent usually offers plus way more, but, you won't have to pay any fees! You would enter into a long-term agreement where the company pays you guaranteed monthly rent for up to five years, with no void periods.
At Better Covenant Properties, we will guarantee your rent, comply with the NRLS, and handle all aspects of letting, maintaining and managing your property on your behalf.
If you are a non-resident landlord and you would like to consider renting your home privately, contact us HERE today.
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