Managing a London property remotely – What you should know

As the largest rental market in the UK, London’s private rental sector (PRS) contributes over £14.6 billion to the country’s economy and meets the residential needs of over a million households. Therefore, it is no surprise that investing in a London buy-to-let property is often considered a lucrative option for earning an income and holding for future capital growth. However, due to the scale at which it operates and the number of people using its services or employed in the sector, the UK’s lettings industry is highly regulated and requires landlords to comply.

Challenges faced by international landlords

Property lettings and management is a constant, hands-on job that involves many responsibilities. For a landlord living overseas, physical distance and time zone differences can make these tasks particularly challenging:

• Listing and marketing your property online and offline.
• Tenant referencing to conduct thorough checks and find reliable tenants.
• Financial management, including timely rent and deposit collection.
• Legal compliance that includes drafting agreements and staying up-to-date with changing laws.
• Maintenance and repairs that include overseeing furnishing, renovations, and urgent repairs.

Choosing the right lettings and property management partner

Whether it is just one investment or a portfolio of rental properties, there are many obligations and duties for a landlord to fulfil before and during a tenancy. Seeking professional assistance is a relief and can be rewarding, as it takes care of all the responsibilities of a London landlord while also maximising yield.

However, choosing the right lettings and property management company is crucial, as they will not just handle the administrative tasks but also take care of your property and ensure a smooth tenancy in your absence. Therefore, the agent you instruct must be as much a local expert as they are good with international clients. Having an agent with multiple local branches can prove beneficial, as it means a more on-the-ground presence for prompt responses to emergencies at the property, along with in-depth local market knowledge and expertise.

Legal and tax considerations for non-resident landlords

Tenants have rights, and with the Renters Rights Bill being introduced into UK law soon, landlords need to be aware of the coming changes and their responsibilities. Crucial tasks such as collecting rent arrears, managing agreements and contracts, evictions, and adhering to proper health and safety regulations are all legal processes that landlords, whether local or non-resident, must be able to handle smoothly and systematically.

There are also several taxes that landlords must pay on time and file proper returns to avoid paying penalties. For overseas landlords, the Non-Resident Landlord Scheme (NRLS) is applicable. These include local council taxes as well as income tax on the rental income. There are ways to minimise your tax bill by claiming expenses, etc., which a competent agent can help you with easily.

How does Benham and Reeves help overseas landlords?

Benham and Reeves offers a one-stop property lettings and management service in London. We have 21 local branches across the city, along with 14 international offices, to serve international landlords and homeowners with all their property needs. Whether it’s maintenance and upkeep, finding reliable tenants, collecting and disbursing rents, overseeing furnishing and renovations, or handling tax returns and other administrative tasks, we do it all. We can also sell your property and introduce you to a range of new investment opportunities, should you be looking for something new.

Ready to make your remote London property management stress-free? Contact our expert team today to discuss your specific needs and learn how our tailored services can help you maximise your rental yield without the hassle.

FAQs for overseas landlords

Q1. Do I need to be in the UK to rent out my property?

A1. You can be anywhere in the world and successfully rent your UK property by instructing a trustworthy property lettings and management company to take care of all your landlord responsibilities.

Q2. Who handles tenant disputes if I live overseas?

A2. Your letting agent can act as your appointed representative and handle tenant disputes on your behalf if you live overseas.

Q3. What happens if there’s an emergency in the property?

A3. Benham and Reeves offer a 24/7 helpline to assist with emergencies that occur out of office hours.

Q4. Can I claim back tax on my UK rental income if I live abroad?

A4. Yes, overseas landlords can claim back tax and personal allowances on their UK rental income by registering with the Non-Resident Landlord Scheme (NRLS) or by applying for Self-Assessment.

Q5. Do property lettings and management companies also take care of the property physically?

A5. Benham and Reeves provide a one-stop lettings and property management service, wherein we regularly visit your property to ensure it’s safe, well-maintained and up to date with all the necessary guidelines and legal compliances.