Landlord guides
Renting Out a London Property While Living Abroad: A Practical Guide
Owning a London property while living abroad is common, but managing it from another time zone isn't easy. Here's what overseas landlords need to know, and how to keep it hands-off.
Tax: the Non-Resident Landlord Scheme
If your usual place of abode is outside the UK, HMRC's Non-Resident Landlord Scheme applies to your UK rental income. Under the scheme, your letting agent, or your tenant if there's no agent and the rent is more than £100 a week, must deduct basic-rate tax from the rent and pay it to HMRC.
You can apply to HMRC to receive your rent without tax deducted, using form NRL1. If approved, you're still responsible for declaring the income through Self Assessment. Speak to an accountant who understands UK property and your country of residence.
The practical challenges
- Repairs and emergencies happen at inconvenient hours, and you can't pop round.
- Safety certificates must be renewed on time even when you're not in the country.
- Voids are harder to manage remotely and can run on.
- Rule changes, like the Renters' Rights Act, are easy to miss from abroad.
Options for overseas landlords
A fully managed letting agent
Handles day-to-day tenancy matters, but you still carry voids and repair costs, and you'll be asked to approve decisions.
Guaranteed rent
A company leases the property for a fixed term and pays you a fixed rent each month. Maintenance, cleaning and guests are handled for you, and there are no voids. For many overseas landlords this is the most hands-off option. Learn how it works.
A checklist before you go
- Tell your mortgage lender and insurer that you'll be letting the property.
- Register for the Non-Resident Landlord Scheme, or apply to receive rent gross.
- Make sure all safety certificates are current.
- Leave a trusted local contact or a management company with keys and authority to act.
This article is general information, not tax or legal advice.