If you’re fortunate enough to be in a financial position where you can rent out your home instead of selling it, should you take the leap?
After all, if you don’t need to sell to fund your next move, renting your property is an option worth exploring.
Here, we explore the dilemma of renting out a property instead of selling.
Timing
As we all know, property sales can take time. There are lots of hoops to jump through and boxes to tick before you get that money into your bank account. If you’re moving away for work, abroad or have any other temporary relocation on the horizon, is it worth putting your house up for sale?
If you’re planning to move for a short or unknown period, you could earn an income from your property by renting it out. By holding onto it for longer, you may see an increase in value when you decide to sell (capital growth).
Although specific preparations need to be made when renting out a property, these can be done quickly, and in most cases, you could get tenants in faster than if you were to sell.
Of course, selling your property would save you the hassle of managing the rental property, but you could always pay your agent to do this instead.
What to check
Is there demand for rentals in your area? The best way to find out is to speak to a local agent – they’ll know what tenants are looking for and can advise about getting your property ready to rent.
If you do consider renting out your home, check with your mortgage company first. Many lenders will let you do this for a set period without changing your mortgage, but if it becomes a long-term change, you will probably need to switch to a buy-to-let mortgage.
It could also be worth speaking to an accountant or financial adviser, as renting a property will have tax implications, and you’ll need to understand these before making a decision.
Our team at Spencer Harvey are always happy to discuss your property dilemmas. So, if you’re thinking about renting, get in touch with us today.