Once a suitable tenant has been found and approved of, it’s time to talk about the paperwork – and yes, the amount of it is substantial. Here, we list a few of the more important ones.
The Inventory
It is advisable to conduct an inventory check before every tenancy your property receives. If you agree to this, City Docklands Limited will arrange for an independent contractor who will do a thorough examination of your apartment and compile an inventory report.
Picture: Getty
This inventory report extends beyond merely listing the furniture in your property; it also includes detailed descriptions of the state of each piece of furniture down to the scuff marks, the working condition of the fixtures, and any signs of wear and tear on the flooring or the walls.
A detailed inventory makes resolving potential issues with the tenant regarding damages much easier, so even though the cost of the inventory check will be borne by you, the landlord, we think it is a precaution that is well worth the money.
Insurance
Under the Financial Services and Markets Act (2000), City Docklands Limited is not allowed to arrange insurance on behalf of the landlords or submit documentation for claims. However, we do conduct management inspections on every property once a year.
If we spot any damages that we believe have resulted from an insured risk, we will notify you and provide all the information required for you to make a claim. We can also provide cost estimates for the repairs as required by the insurers.
Post-claim, we can arrange for repairs to be carried out on your behalf.
Taxes for Non-residents
The HM Revenue & Customs (HMRC) runs the Non-Resident Landlords Scheme, which taxes non-resident landlords for income made on UK properties. Under the scheme, UK lettings agents, such as City Docklands Limited, are required to deduct the basic tax rate from any rent collected.
We charge £145 including VAT for submitting quarterly returns and an annual return. Once a year, we will send you an update with the annual amount of tax that City Docklands Limited has paid on your behalf.
It is possible to apply to the HMRC for approval to receive rents without being taxed. If you do so, and are successful with the application, send us the written decision and we will transfer rental income to you without deducting any amount for tax. However, note that while HMRC may not have taxed you, you are still liable to UK tax and have to include the rental income on your tax return.
Article contributed by City Docklands Limited.
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