UK people renting their property and living off the rental income
If done correctly, investing in real estate and becoming a landlord may provide you with a very competitive income. The rent you charge determines the amount of money you may earn as a property investor. However, when it comes to calculating rent, you can’t simply pull a number out of thin air and charge whatever you want, as tempting as that may seem.
The amount of rental rate depends on the location like for larger cities and towns. In line with this, moving abroad is a big decision, and some landlords choose to keep their property so that they have a place to return to if they chose to do so. Similarly, if you know you’ll be gone for a year or two, it may make more sense to keep the apartment rather than start looking for a new residence when you return.
If you are British but reside outside of the UK, you may earn money by renting out property in the UK. You must sign up for Self-Assessment in order for HMRC to calculate how much tax you owe. It is because, even if you have your tax residence in another country, if you lease out a home in the UK, you must pay UK tax on your rental income. If you are a UK resident renting a home in the UK and then going overseas to live off the rental income, you may not want to deal with a property management who would take a portion of your revenues. However, before you dismiss the idea of working with a professional, assess your own knowledge and the amount of time you can spend being a landlord and comply with the legal responsibilities along with it. You might also ask friends or relatives who are landlords for recommendations. This might save you a significant amount of time and effort in settling any potential difficulties and tracking down payments.
