We have a guide to letting property that you can download here. You can also find out the process and timeline involved in renting out property and we are always happy to discuss your personal requirements please contact our lettings team on 0207 394 1160 or request a call back.
1. What are the costs of renting property as an investment?
The costs you may incur include the initial property purchase, mortgage/loan costs, maintenance, gas and electrical safety checks and EPC, insurances, agents fees or if you are not using an agent marketing costs and legal fees. You should also bear in mind that you may have some void periods between tenancies if you fail to let the property or need to carry out repairs and maintenance.
2. What are the legal requirements for rental property?
The property must be safe and habitable, and comply with local authority regulations (where applicable). See our Checklist for Landlords for a quick reference to the requirements you need to comply with.
3. Will I have to pay tax on my rental income?
You are liable to pay tax on income from property and this will vary depending on your other income. If you are living abroad you will need to complete a form so we can pay you the rent without deductions – you then just need to fill in a tax return at the end of the year. You can find out more about tax on rental properties from the Governments Tax website HMRC.
4. Will I have to pay capital gains tax on my rental property?
You only have to pay Capital Gains Tax if you sell or transfer your property and you made a profit. Your main home is not subject to Capital Gains Tax, but a rental property would be, however there are some costs you can offset if you have improved the property plus there are certain tax reliefs that may apply to your situation find out more on the Governments Taxation Website.
5. Renting property to family or friends – what are the pitfalls?
We recommend that you still draw up the usual legal paperwork before renting to family or friends. If you enter into an agreement in a casual way there will still be a statutory agreement in place but it can be easy to misunderstand the expectations of either side if nothing is in writing. You do not have to enforce the terms of the agreement but if you do not have one, and you fall out or disagree you can be left with a complicated legal situation that could jeopardise your personal relationship.
6. Should I rent my property furnished or unfurnished?
The London market tends to be biased towards furnished property, particularly in flats and apartments. Other parts of the country vary and larger properties are often let unfurnished. We can offer you a range of furniture packages to suit the size of your property and your budget. If you want more advice on what to provide please click through to our furnishing guide.
7. Do I need an agent?
You do not have to use an agent to let your property. However many landlords find it cost effective to let an agent deal with the marketing, rent collection, deposit administration, and tenants checking in and out of properties. Why not see what our Full Management Service offers you.