accommodation
Renting
For a lot of swappers renting a place to stay is a more preferable. If you think that renting accommodation could be the right option for you, here are some positives and negatives to help you decide.
Positives
- There is less upheaval and packing required as no body will be using your property
- You have control over where you stay
- Your home will be as you left it when you return
Negatives
- It could work out to be more expensive than swapping accommodation
- You could encounter tenant problems whilst you are away
- You could end up paying for two properties, your own and the place you rent during your swap
check list
If renting is still your preferred choice, here are some things to think about:
A. Considerations when finding a place to stay in your swap location
Given the duration of most swaps, you will need to look for a short-term tenancy
Do your research: You and your swapper can help each out with local knowledge in order to find good places to stay. Your swapper might even have a friend or colleague with a spare room.
As well as the online links provided, check in local newspapers for additional property listings
We suggest checking into a hotel when you first arrive to help with your orientation
B. Finding a tenant
The information in this section is currently specific to renting out a property in the UK and assumes that you are the owner of the property.
Using a letting agent
Unless you've got very reliable friends or family who are willing to manage your house, it's best to use an agent. Here are some things to note when using an agent:
- They will usually charge a fee when they find you a tenant
- They will take a percentage of your monthly rent (usually 5% - 15%)
- The majority of agents will be responsible for sorting out any problems with your property (but need will need to stay in contact with you to authorise anything that requires payment, e.g. if the fridge needs replacing)
- They will chase unpaid rent for you
When looking for a letting agent:
- Ask friends, family and colleagues for recommendations
- Make sure you know what they will and will not take care of whilst you are away
- Get written clarification of their fee and charges before you go
- Invite your prospective agent to your house and see what they say - not just about the rent, but about any safety issues, suggestions for increasing the rental value, etc
One final tip - ensure your tenants have your contact details too. If your agent is not up to scratch, you will want to know about it.
Finding tenants
Whether you use an agent or not, you will need to leave plenty of time to find tenants. If you don't use a managing agent, you can still use a letting agent to find you a tenant and sort out the paperwork (this is a good option if you're a first-time landlord).
Some career breakers choose to rent their house to friends. If you are thinking of doing this, make sure that you set out all ground rules first to avoid any friction (e.g. who pays for breakages etc!). If you do rent to friends, treat them like any other tenant, with a proper lease.
If you're having trouble finding a tenant, try the following:
- Use more than one agent if not enough people are viewing your property
- Ask agents and other landlords for suggestions on improving your house, e.g. installing a decent shower, repainting a room in a more neutral shade etc
- Look at other properties to rent in your area to make sure that the rent you are asking for is realistic
The law on renting out your house
The legal aspects of renting out your home are thankfully not complex. But bear in mind that your tenant has rights, and that you can't just boot them out if you come back early. There are a few health and safety issues you need to be aware of, such as:
- Having smoke alarms and extractor fans fitted
- Having gas appliances inspected by a CORGI-registered engineer (you get a landlord's gas certificate when this is done, which the tenant keeps)
- Ensuring upholstered furniture is fireproof
Be aware that the Disability Discrimination Act, Sex Discrimination Act and Race Relations Act also apply to you.
If it all goes wrong and your tenant doesn't pay their rent, damages your possesions or property, or is anti-social, you can get a court order to evict them (you cannot go round with a big stick and evict them yourself).
More in-depth information can be found on this UK government guide for landlords.
Your mortgage if you're renting out your house
You must tell your mortgage lender if you're renting out your house. For a longer swap some mortgage companies may require that you to switch to a buy-to-let mortgage. Let your mortgage lender know exactly how long you plan to rent out your house, and find out what happens if your plans change (e.g. if you return earlier or later than you anticipated).
Tax on income from renting out your house
Your rental income is taxed and you need to declare it on a self-assessment tax return. Here's how you do it:
- Calculate your annual rent (after the agent has taken their share)
- Subtract your allowable expenses (a 'wear and tear' allowance, which is a percentage of your rent, plus the cost of buying anything new for your house)
- Fill in your self-assessment tax return by 31 January (or 30 September if you want the Rev to work out your tax bill for you)
Your rental income is added to your normal income, and you pay ordinary income tax on it. It may be deducted at source by your agent.
For more on tax, plus contact details if you need help, visit www.hmrc.gov.uk
Insurance if you're renting out your house
You must notify your buildings insurance provider if you're letting your house. For contents insurance, you may choose to keep your existing policy, or you can insist the tenant has a policy that covers damage to landlord's fixtures and fittings (plus your furniture if relevant).
Some people also recommend getting legal insurance, to protect yourself if your tenant sues you, or clears off with your stuff.