Introduction
Many people rent out a property only temporarily.
It might be:
- a former home
- a property rented while deciding what to do next
- a short-term let while living elsewhere
Because it wasn’t meant to be permanent, many assume it doesn’t really “count”.
Unfortunately, that assumption often causes problems later.
🎥 If you prefer to watch rather than read, this video explains what HMRC expect when a property is rented out temporarily and why accidental landlords often get caught out.
You can continue reading the full guide below.
1. Temporary Does Not Mean Exempt
HMRC don’t assess rental income based on how long you intended to rent a property.
They look at whether:
- rental income existed
- the property was available to let
- money changed hands
Even short periods of letting can still trigger reporting obligations.
If you’re unsure how HMRC may already be aware of rental activity, I explain the common data sources they rely on in my guide on How HMRC Know You’re Renting Out Your Property.
2. Why Accidental Landlords Get Caught Out
Most accidental Landlords:
- don’t see themselves as Landlords
- work under PAYE
- have never filed a Tax Return before
The rental often starts informally, then quietly continues longer than expected.
That’s usually when confusion sets in.
3. PAYE Does Not Cover Temporary Rental Income
Even if you’re taxed correctly through PAYE, rental income sits outside Employment Tax.
HMRC won’t automatically include rental income unless it’s declared separately.
This is one of the most common misunderstandings I see.
This is especially common for people taxed through PAYE who don’t see themselves as Landlords, which I explain in more detail in my guide for Employed Individuals Who Also Have Rental Income.
4. Small Amounts and Short Periods Still Matter
People often say:
“It was only a few months.”
“It didn’t make much profit.”
But HMRC focus on:
- whether rental income existed
- whether it was assessed properly
Profit comes later. Reporting comes first.
Even where the rental income feels minimal, reporting obligations can still apply, which I cover in more detail in my guide on Whether Small Amounts of Rental Income Need to be Declared.
5. What Happens If HMRC Identify It Later
HMRC may become aware through:
- Letting agents
- Councils or licensing
- Mortgage information
- Rental platforms
When this happens years later, people are often surprised — but the obligation existed at the time.
6. What to Do If This Sounds Familiar
If you rented out a property temporarily and aren’t sure whether it was declared correctly, the safest step is to clarify your position early.
Handled properly, many cases can be resolved without unnecessary stress.
Where rental income hasn’t been declared at all, HMRC have specific processes for bringing things up to date, which I explain in my guide on Fixing Undeclared Rental Income.
Next step
If you rented out a property temporarily and are unsure whether HMRC expect anything further, getting professional advice can help clarify your position and next steps.
If you’d like professional help reviewing your position, you can book a paid diagnostic consultation with us to understand your next steps.