Are you looking to rent your property in the UK? 

This article will provide insights on various factors to make the right decision when considering renting your property to a tenant or on a GRA (guaranteed rental agreement) to a property management company.

 If you are a property management company, reading this article, we would encourage you to check out ConnectX BPO services.

How much will the council pay to rent my house?

The rent that the council will pay for your home is determined by several criteria, such as:

• Rates for Local Housing Allowance (LHA). On GOV.UK, you can find out the local housing allowance rate in your area.
• Your situation and household income.
• The dimensions of your lodging. 

You can use GOV.UK to find out how many bedrooms you qualify for Housing Benefit for to calculate how many bedrooms you need.

Should I use a letting agent or rent my property privately?

You have total control over every element of your rental property as a private landlord, but this may require you to be available around the clock. 

On the other side, letting agents can handle the majority of your landlord duties, freeing up more of your valuable time, but the cost will probably be high. 

The option that is best for you will depend only on your unique situation.

How to rent my property in the UK for the first time?

Being a landlord requires a diverse set of skills and a commitment to staying informed about the ever-evolving landlord-tenant laws and regulations. 

From screening potential tenants and drafting lease agreements to handling maintenance requests and managing potential evictions, a landlord must be prepared for a variety of responsibilities.

What is an ARLA agent?

An industry standard for property management, ARLA accreditation denotes a dedication to maintaining the highest standards, giving both landlords and tenants the confidence to negotiate the intricacies of the real estate market successfully. 

Advantages for landlords include:

• Increased trustworthiness.
• Obtaining legal and regulatory counsel.
• The guarantee of high-caliber assistance.

The ARLA code of practice supports this service.

How much tax do I pay if I rent my house out?

The tax rates on your rental gains are the same as those on income from your job or business, which can range from 0% to 45%, depending on the tax band the income falls into.

Your total income is increased by your rental revenue, perhaps placing you in a higher tax rate. 

As an illustration:

• Your job pays you £40,000 a year.
• You rent out a property and earn £13,000 in profit.
• This puts you beyond the £50,270 higher-rate tax threshold.
• If the amount exceeds £2,730, you will be charged 40%.

How much rental income is tax-free in the UK?

You are not required to pay taxes on the first £1,000 of your rental income. This is your property allowance.

If you earn more than £1,000 or up to £2,500 per year from renting out properties, get in touch with HM Revenue and Customs (HMRC).

If it’s more than the following amounts, you have to report it in your self-assessment tax return.

• £2,500 after deductible costs
• £10,000 before permitted costs

Leverage ConnectX BPO Services to Your Advantage

ConnectX offers high-quality, reasonably priced back-office property management services to help you maximize your business. 

Leverage our ARLA-qualified agents for your properties specializing in the UK property market. 

If you are a property management company reading this article, we can provide you with our BPO & Outsourcing services in HR, Finance, customer support, business development and other key operational areas.

Let’s start a conversation!