However thoroughly tenants are vetted, no-one can guarantee that a tenant won’t default on their rent, especially in times of economic uncertainty. Although rare, should a tenant continually fail to make their rent payments when due it would result in notice being served to end the tenancy.
If the tenant refuses to vacate at the end of the notice period it may be necessary to go to court to obtain a Possession Order, and the average legal costs of an eviction can be several hundred pounds.
For less than £10* a month the Rent & Legal insurance policy that we offer can give you complete peace of mind, knowing that the following protection is in place:
* This cost is for fully managed properties receiving a rent of less than £2,500 per month. For properties in excess of £2,500 per month and for non-managed properties, please refer to the enclosed fees sheet for current prices.
Because Morgan Associates are directly regulated by the FSA, rather than being just an 'Introducer' of insurance business, we are able to handle insurance claims on behalf of our landlords, which many letting agents are now prohibited from doing.
A Landlord is classed as non-resident in the UK if they are out of the country for more than six months in any tax year. In accordance with the Finance Act 1995, agents are required to deduct tax at the basic rate from rental income net of expenses prior to paying monies to overseas Landlords. The agent must send the tax deducted to HMRC on a quarterly basis (June, September, December and March).
However, under this Act HMRC introduced a system of Self Assessment and all overseas Landlords may apply to the HMRC for approval to be paid the rent without tax being deducted. If this is granted the agent is issued with an Approval Number for the Landlord, whereby they are allowed to pass the rental monies to the Landlord without deduction of tax. The Overseas Landlord would then settle any tax due directly to HMRC in an annual return.
Should you move abroad whilst in the middle of a Tenancy you must advise us of this so that we can ascertain whether tax should be deducted from your rental income.
We strongly recommend that you apply for Self Assessment and we can provide you with the appropriate application form. We cannot file this application on your behalf - it must be done by you. If a property is owned by more than one overseas landlord each landlord must submit an application for approval.
They may be required to do this if: