craig25

Hi i am thinking about renting my house in the uk when i move to canada.Has anyone else done this and do you think it is possible ?.House prices are low so hopefully they will creep up over the years.Also i would be getting a steady income from renting it out but wondering how awkward this would be while living overseas.

mabozar

Yes we are still renting our house out in the uk we had little choice. The market is flat.

Carol

Jadantrak

Hi there

we too have looked at house prices and are considering renting out until things pick up - Stirling Scotland - Im just not that keen on renting too long in Canada as I feel I am throwing my money away - hopefully my potential renter wont feel that way LOL

__TJ__

Hmm problem is if you live in Canada fir a few years and decide to buy you could be liable for cap gains tax on your uk house when you well it, we are selling so we have a clean break, get advice from a tax lawyer either here or in Canada. Even if we rented it out we wouldn't get enough to pay mortgage. We are hoping we never have to go back once we go, but if we do, going back to the same house would not be ideal. I love this house, but when I go,I can't go back.

mrsr0binson

I hate to put a downer on things but you do need to be aware of the pitfalls too.

We rented out our home to a professional couple with a family; and 5 months later the tenants stopped paying their rent. It has so far taken us 8 months and has cost us approx. £8k to get them out.

We were with a reputable property management company too - for the amount of help they have been My house is a wreck and the garden has not been touched for a year.

On hindsight, we should have sold it; as we have lost over £8k by renting it out anyway.

Just be careful and do your research - also be aware that Property Management Companies are not like Estate Agents, they do not need accreditations to set up their business - Our one is part of a major company, and has still let us down very badly.

If it all goes smoothly, it is great. But you also need to think about what happens if something goes wrong too - the 5+ hour time difference can make it almost impossible to deal with any possible issues.

Maybe read up on some of the UK Landlord websites; there are some really good ones with lots of tips for making your rental a success - as well as what to do if things go wrong.

cheeky_monkey

I rent my house in the UK and have since i have been here. I have no intention of selling it as i want it as a place to return to. Yes it can be a a bit of a nightmare when you are 5k miles away if anything should go wrong.

englishrose1

i am renting my house out too. Wish I could have sold it before I left but that was not meant to be.

Thanks to the crash, I dont see me being able to sell it for quite a few years. Yes renting is a nightmare, as tenants forget it is not there house.

I was stung by a ensuite shower glass pane supposidly cracking. Yeah right hmm. I lived there 6 years you move in a within a month it goes. £1000 quotes to fix it.

Yes right! The joy of tenants.

cheeky_monkey

Whats the glass made of...gold?

Hobbess

We had a terrible experience renting for 2+ years after leaving, 5 tenants, 2 property management companies, excess costs for repairs, parties with e-mails from our neighbours then to top it off the 2nd property mangement company went bust and we lost about £4000.

However, even after all that if we were in the same situation we'd still do the same thing and hold on to the property if we were leaving. Reason being is that we originally came on a 1-year TWP so the flat was our back-stop if things didn't work out here.

Luckily things did work out and after the various nightmares we sold at no £ gain/loss and got a $ capital loss thanks to the dropping FX since we landed.

mrsr0binson

I hear you - we had to pay £480 to have a £60 pump replaced on our boiler... and the tenants were already 3 months in arrears by that point... Also another £205 to have a connection on the cooker cleaned, because the tenant had never heard of Cif!! if you don't laugh sometimes, you would cry

The last I heard the plumber was holidaying in the Maldives...

MillieF

I have been renting my house our for years, because I was working out of Europe and then moved back to Europe, in France. I have just sold our home in London, because I was offered a good price. Thank heavens - I loved that house - but over years of being rented it became horrid. It was dirty and unkempt, but that's not how it was! Now the market has shifted and we live in our French home and the market has disappeared, however, I'm not a bloody refugee, maybe we may loose some money but heavens what we lose and gain can't always be measured can they?

hutchy100

I rent my house out and do it though a estate agent and there cover the cost if the people dont cover the rent

i see this as part of my pension

craig25

I am actually in the process of buying the house and then leaving it for family members to look after it and rent it out for me.The reasons are is the house is priced low due to the recession and hopefully in the coming years it will increase in value.Thanks for all of your replys,it has made it easier for me knowing it is possible.

London Mike

Yes, we rent our house out too. When we came to Canada last June it was a wretched time to sell. Also, after 10 years of ownership we were finally starting to see some serious pay-down on the mortgage and with the forecast appearing as though no major IR rise is coming it still seems a pretty good time to rent out.

Advice: really scrutinise your prospective tenants and choose an agent that will not only check their credentials carefully but let you see their file too. Then negotiate a deal with your letting agent so that you pay less %tage in the 2nd year to them if your tenants stay on. Most of their 'costs' come in year 1 - why should they continue to take 10-15% in years 2, 3 etc? Very few people negotiate this and every letting agent we spoke to was happy to do this for full service.

Yes, capitol gains is an arse but make sure you get a letter comfirming the property's value just before you leave. Then, when you report it as an asset in your first CRA file you'll notice that the $$ amount reported is at a much more favourable rate than today's £/$ rate. In theory, if you then sell within 3 years (as we will) you might even be in a possible capitol loss situation as far as CRA is concerned and not liable for UK CG tax either (this is where JonBoy jumps in and says 'hang on London Mike ...'). There's a treaty between the two countries so you only report/pay one lot of CG tax, certainly none to HMRC if sold inside 3 years of leaving the country.

Yes, costs can be a pain but remember to report all expenditure on upkeep in your CRA file - it will reduce the amount of tax you pay here since these costs count against your rental income. Also, yes I imagine my house will need a major paint job and clean when I sell it, but who doesn't do that to their house before they sell anyway? Just turf your tenants out when you want to sell and spend a week in the property sprucing it up nicely before you put it on the market.

Ciao for now.

mrsr0binson

Good luck with that, Mike. But did you know that even if you give your tenants the required notice to leave your property; they still do not have to? You would then have to apply for a court possession order (Ours will have taken 9 weeks to even get heard in court) and then; IF the tenant does not contest the order, they have 2 weeks to leave your property - however; they may decide to continue to squat anyway. Then you have to apply to the court AGAIN for a bailiff to remove them and their belongings = another 6 weeks.... All the while you are obliged as a landlord to maintain the property for them... They do not even have to pay a penny in rent.... but you have to pay your mortgage plus £1000's in court and solicitors fees. The law is an ass

You are so right about doing your research; we really wish we had known more. Try to get to grips with your tennancy agreement and make sure it works for you as much as possible - although the above will still apply; you may be able to start taking action sooner if it is part of your agreement.

Can you tell I'm feeling a little over-sensitive about this subject OK, rant over.....I think I will have to have a lie down now...