From inspections to inventories, electrical inspections to council tax, we know there’s a lot you need to remember as a landlord. We have covered a few of the most frequently asked questions we hear from new and existing landlords below.
Question – How does renting my home in the UK work if I live abroad?
If you are resident or are moving abroad then we are required by law to deduct the required amount of tax from the rental income, however this may be avoided if you register with the Inland Revenue Non Resident Landlords Scheme. Richard James will be happy to provide the necessary documentation in this respect.
Question – Do I have to pay tax on my earnings?
Income from property rental is treated by the Inland Revenue as unearned income, and as such is liable to standard rates of taxation. There are however, many allowances and expenses that can be used to offset the taxation, details can be obtained directly from the Inland Revenue or your accountant. You should be aware that self-assessment taxation which came into effect on 6th April 1996 requires landlords to retain all records of income and expenses regarding their property.
Question – What type of cover do I need?
The landlord is responsible for building and contents insurance; the tenant is responsible for his/her own possessions. We would be happy to recommend a specialist insurer. Please do feel to speak with a member of our team for more information.
Question – What is an inventory?
A tenancy inventory is a document that details the condition of a rented property and any contents, fixtures and decoration within it. It is important to compile an inventory to see if anything within the property has changed at the end of the tenancy. If repairs or replacements need to be made, the landlord will use the tenancy inventory to deduce who is financially responsible for these. If the tenant is responsible, the cost will come out of their deposit, so the document may be needed to settle any disputes that arise between the landlord and tenants.
Question – What are a landlord’s repair obligations?
Almost all the repairs that are required from a landlord are those that relate to the property, such as its structure and exterior, sinks, baths, pipes, gas appliances, ventilation and hot water. If the damage was caused by a tenant, then this is usually cause for them to pay for the repairs themselves. Otherwise, you can discuss with them at the end of the tenancy if there are repairs that need to come out of the deposit.
Question – What regulations do I need to know about as a landlord?
The main regulations that you need to think about are your Fire, Gas and Electrical Safety certificates. These checks can be organised by Richard James, and help ensure your property is safe and habitable.