Hi everyone, I am doing a rtw trip for a year and am going to rent out my flat when I go. Has anyone else done or going to do this? Do you have any hints and tips? Do you get taxed/NI on the rent you will earn and whom do you have to inform that you are going with regards to council tax etc?
Thanks in advance for any help.
My boyfriend and I have been looking into this as well. We have opted to get an agent to look after our house when we travel. The agent usually sorts everything out for you, that is changing the names on bills, informing your local council, dealing with inspections and contracts. If there is something they can't do, they will let you know! They said to us that they can collect all the rent and transfer it to our account and keep in touch by e-mail.
Usually you can add specific clauses into the contracts (in our case, no stilletos on our wooden floors! ). The agent charges a handling fee of 10% of your rent (not including 17.5% VAT). You won't have to pay tax or national insurance on this, as it won't be more than £4,888 (which is the maximum you can earn in a year without being taxed). As you will probably have a mortgage to pay, the rental income and the agent's fee will more than likely take up the whole of the rent you get from someone living there!
Maybe you should give a local letting agent a call and get them to value your flat for rental and you can then ask them all the questions you need to?
Hope this helps
Thats great Donna, thanks.