How overseas landlords manage London property: letting agent models, AST contracts, tenant referencing and tax obligations for non-resident owners.
Letting and Property Management in London: Choosing a Letting Agent
You have bought. What now? How do you run a London property from Turkey?
It is more straightforward than many investors expect — but you need to understand the system.
What Is a Letting Agent?
A letting agent is a licensed professional who finds tenants and/or manages the property on the landlord's behalf.
Membership of ARLA Propertymark is a reliability indicator. It is not mandatory but is recommended.
Service Models
1. Let-Only
The agent finds a tenant, runs referencing, prepares the AST (Assured Shorthold Tenancy), and hands over. You manage thereafter.
Fee: 6–10% of annual rent (one-off at tenancy start)
Best for: Landlords resident in the UK or with a trusted local representative.
2. Full Management
Covers the full lifecycle:
- Tenant find and referencing
- Rent collection and remittance
- Maintenance coordination
- Rent reviews and renewals
- Void-period security
- Check-out inspection and deposit return
Fee: 10–15% of annual rent (deducted monthly)
Best for: Overseas Turkish and Azerbaijani investors — the default choice.
What Is an AST? (Assured Shorthold Tenancy)
The standard English residential tenancy. Key features:
- Minimum term: 6 months (usually 12 months initially)
- Rent fixed during the term unless the contract provides otherwise
- Tenant security: cannot be removed during the term except on legal grounds
- Section 21 Notice: Process to recover possession — significantly restricted by the 2026 Renters' Rights Act; take current advice
Tenant Referencing
| Check | Scope | |---|---| | Credit check | Debt history and payment record | | Income verification | Affordability (typically 2.5× rent) | | Employer reference | Employment confirmation | | Previous landlord | Rental history | | Identity | Right to Rent — all tenants' immigration status verified |
Deposit Protection
The tenancy deposit must be protected in a government-approved scheme within 30 days:
- DPS (Deposit Protection Service)
- MyDeposits
- TDS (Tenancy Deposit Scheme)
Failure to protect exposes the landlord to penalties.
Rent Increases
During the term: No increase unless the contract allows it.
On renewal: Increase by agreement or via Section 13 Notice. The 2026 Renters' Rights Act strengthens tenant challenge rights; excessive increases may be reviewed by a tribunal.
Tax for Overseas Landlords
Non-Resident Landlord Scheme (NRLS): Non-UK resident landlords typically have 20% withholding applied to rent by the agent or tenant and paid to HMRC.
You may reclaim some tax through Self Assessment with expense deductions. Annual filing is required.
Exception: With HMRC NRL Approval, rent is paid gross; you settle tax via Self Assessment.
Practical Tips
- Research agents first: ARLA membership, reviews, local expertise
- Read the management agreement: Early termination, renewal terms, maintenance approval limits
- Set an emergency repair cap: Typical £150–£300 without prior approval
- Hold a three-month reserve: For voids and unexpected repairs
- Request annual inspections: Standard in full management
Letting agent and management introductions:
+44 7990 38 1102 | investinlondon.com.tr