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 is often considered a lucrative option to earn an income and hold for future capital gains. 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 remote landlords commonly face

For a remote landlord, maintaining a property or ensuring a smooth tenancy by following all the rules and keeping pace with changes to local property and leasing laws can be a challenge due to the physical distance and time zone differences. A successful landlord experience requires extensive groundwork to maximise rental yield in a diverse property market like that of London.

Property management is a complete and constant hands-on job that involves a myriad of responsibilities. From listing and marketing your London property both online and offline to doing referencing checks on tenants, timely rent and deposit collections, drafting agreements, overseeing repairs, furnishing and maintenance, handling tenant grievances and more, it’s a lot of work.

Choosing the right letting 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 serve as the custodian of your property 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 and experienced staff to manage different types of properties across diverse London neighbourhoods is essential.

Legal and tax considerations for non-resident landlords

Tenants have rights, and the latest amendments in the new Renters’ Rights Bill only ascertain them by requiring landlords to follow the rules correctly. Issues such as collecting rent arrears or managing agreements, contracts, evictions, and providing proper health and safety conditions are all legal processes that landlords, whether locals or non-residents, 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 of minimising your tax bill by showing 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 foreign landlords and homeowners with all their property needs. Be it maintenance and upkeep, finding reliable tenants, collecting and disbursing rents, overseeing furnishing and renovations or handling tax returns and other admin tasks, we do it all.

As an award-winning lettings and estate agent with trusted industry connections, we have helped thousands of investors and landlords reap the benefits of investing in a London buy-to-let property. You can read our detailed landlords’ guide for information on property lettings in London, or contact us anytime to discuss your property requirements and learn more about our services.

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.