UK property
Holding onto your UK property
The very first thing you should do is let your mortgage lender know that you intend to let your property and find out what their terms and conditions are. You can save a lot of time by finding this out before you start making other inquiries and plans. Breytenbachs solicitors advise that your mortgage lender should be your first point of call on this. You may be required to change your mortgage to buy-to-let.
Before you spend hours on the phone researching mortgages it is worth noting that quite a few deals are not available to people who are going to be non-resident landlords so you should let any institution or broker that you are making inquiries with know that you are intending to leave the UK.
Finding an agent to manage your property is easier than it might seem as it is a very competitive market. It's worth listing with a few agencies and it is a good idea to see how negotiable each agent is on fees - a cut of a percent or two in the rate they charge may mean getting a tenant you like at a price that is right. Think very carefully about asking a friend or family member to manage your property for you. It might seem like a good idea and they might tell you it is no trouble, but remember that this is business and things can become very complicated. An agent has the resources, skills and experience to deal with any problems that crop up - from a blown fuse to a blow-out with the council.
You must apply to the Inland Revenue to become a member of the non-resident landlords' scheme. If you don't your managing agent is legally bound to hand over a portion of the rent to the receiver before depositing the difference in your account. Some agents tell you this; some don't, but it is the law.
It is worth having a professional check your heating system, electrics or anything else that you fear may come due for some attention while you are away. Central heating systems require occasional flushing (an expensive but little known concept) which not only protects the system but improves its economy (therefore lower bills for your tenants, and remember that any increase in your tenant's happiness is likely to have an upward effect on your own). Also, you would probably prefer to have this done by a contractor of your choice and in your presence. If in doubt about any of these things you should err on the side of caution, keeping in mind that it is much better and easier (even cheaper sometimes) to take the pain before you leave.
Consider having independent professional services such as cleaning and inventory checking. The money spent will be more than justified by the saving in hassle and worry. An independent inventory checker will look at the condition of the property and furnishing and confirm meter readings. The same will be done when your tenants move out and you will be given a clear sense of the deterioration of the property and how much of that is wear and tear that should be expected. The combined check-in check-out service costs #150 and gives both tenant and landlord a fair assessment.
Keep furnishing, appliances, electrical goods etc to a minimum. You will have to maintain and or replace whatever you leave at the property. For example, if you leave an old television because you can't be bothered to remove it it will be shown on the inventory and you will probably be required to replace it should it break down.
The key here is to find a good agent whose advice you trust because they will warn you off many problems like this. They have seen it all before.
Also, let your agent be your guide about any changes you think a tenant might want you to make to the property. Landlords are advised to make changes only after a tenant has been found. A single person might, for example, not want a second bed in what is advertised as a two-bedroom house, or a dog owner might not want the house recarpeted before he moves in.
