Letting agents in the UK ideally need to be ARLA registered, this ensures the tenant’s rental funds are protected and the letting agent is up to date on legal matters. It also means the agents have to keep their skills and experience up to date through regular training.
The Association of Residential Lettings Agents. For more information on what they do, click HERE
Here at Crown Home Letting, we are registered.
There are many online platforms that can help you find a home to rent. The UK's largest rental search portal is called Rightmove, alternatively looking on companies websites and social media pages is a great way to find a home.
For our Rightmove page, click HERE.
Tenancy agreements tend to vary from 6 months to 36 months, but this is all dependent on your personal circumstances and the agreement made between you and the landlord.
The break clause allows both parties to terminate the tenancy agreement prior to the official tenancy end date subject to a relevant notice is served. Tenants are able to ask for one however, this may reduce the possibility of your offer being accepted.
Yes! Students are always asked to pay in advance of the tenancy term or there is also an option to use a UK based guarantor.
This is a person other than yourself who is able to verify that they would be able to pay your rent if you were unable to. The guarantor has to co-sign the tenancy agreement. One of the main requirements for a guarantor’s annual income (before tax) must be 36 times the monthly rental price of the property.
Once your offer has been accepted you’ll be asked to pay a one-week holding deposit. This will then be allocated towards your move-in funds.
If your tenancy falls under Assured Shorthold Tenancy (AST) you will not encore any other charges except 5/6 weeks security deposit and your first rent instalment. This should be paid prior to the tenancy commencement however, you may be asked to pay this upon signing the tenancy agreement.
You’ll be asked to complete a reference application form and to provide your personal details. You will be asked to provide documents verifying your personal, professional, residential and financial history.
Under the Housing Act 2004 every landlord and letting agent is required to register a tenants deposit by placing it in an authorised deposit scheme. This ensures the deposit is protected by a verified third party and not released until both tenant and landlord agree. The most common schemes are the Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS) and My Deposits.
If your property is managed by a letting agent, then you should be given the details of your Property Manager and an out of hours contact, in case of an emergency. They will be able to assist you with any issues during your tenancy. However, if your property is managed by the landlord themselves, then you will be provided with their contact details for any issues relating to the property.
At the start of each tenancy, an inventory clerk will prepare a report detailing all the items, fixtures and fittings in the property as well as their condition. At the end of the tenancy, a check out report will be created that identifies any differences.
You will be expected to ensure the property is cleaned to the same professional standard as at the start of the tenancy as well as, all items must be put back in their original positions. It is always best to refer to the inventory check-in report that you will receive at the start of your tenancy.
The agent/landlord has to notify the tenant within 10 days if they plan on making any charges from your deposit but receiving your deposit may take longer.
For more advice and guidance on a tenant's letting process, click HERE for the "How to rent guide".
If you own a rental property in the UK and you’re not a UK tax resident (and also have no other income in the UK) then you’re required by law to declare and pay tax on any and all rental profits. You have until the 31st of January of the following year to complete your personal tax return. The UK tax year ends on 5th of April.
In other words, on January 31, 2023, you have to report rental income from April 6th, 2021 to 5th April 2022. For rental profits earned after April 6th, 2023 your reporting deadline is January 31st, 2024.
You can file your own taxes by using the link using this link www.gov.uk/log-in-file-self-assessment-tax-return or through a Chartered Accountant. Your real estate agent should be able to provide you with your properties’ earnings and expenses for the past year. Please remember, there are costs which can be claimed that your agent will likely be unaware of.
If you are a non-UK tax resident and have lived in the UK for less than 183 days a year, the tax amount is only related to your UK Property income and gains.
If you are a UK tax resident and live in the UK for more than 183 days a year, the amount of tax you pay is related to your worldwide income and gains, and not just those arising in the UK. This means your usual salary, dividends, investments and rental income from anywhere else in the world. Even if taxes in other jurisdictions are taxed together, it’s still possible to claim some relief if you are an overseas national living in the UK. However, that remains outside the scope of this note. So, from this perspective, high-income overseas buyers have a distinct advantage.
Depending on residence and nationality, some taxpayers will be entitled to receive part of their income tax-free. Every UK/EU national and every UK tax resident is entitled to this personal allowance. The personal allowance is not available for non-resident Chinese nationals. The personal allowance for the 2022/23 tax year is £12,570.
If you are a non-UK tax resident and there is no exemption limit, please refer to the tax limits below.
£0 - £37,700 - 20%.
£37,701 - £150,000 - 40%.
£150,000 - 45%.
If you are a UK Tax Resident and Have a Tax Exemption, Please Refer to the Tax Limits Below.
£0 - £12,500 - 0%
£12,500 - £50,270 - 20%
£50,271 - £150,000 - 40%
£150,000 - 45%
However, please note that if your taxable income exceeds £100,000 then you will lose your personal allowance as the rate is £1 for every £2 of income exceeding £100,000. This means your allowance is zero if your income is £125,140 or above.
Tax deductible expenses are agency fees, services charges, ground rent, home maintenance fees, and expenses incurred solely and exclusively for your property.
For individuals, loan interest on residential property is not tax-deductible, but it is eligible for tax relief at 20%. This, in effect, caps the tax deductibility of loan interest. If the amount of the loan increases due to refinancing which results in an extraction of invested funds out of your property business, the additional interest from the increased loan is not tax deductible. It is important therefore to ensure you structure your affairs property before you buy a UK property.
Annual rental income - expenses related wholly and exclusively to running the business = income - loan interest * ER%= profit before tax
ER$ – effective tax rate
