06, June, 2023

Should I sell or rent my house?

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Should I sell or rent my house? 
There are pros and cons to selling or renting a property, which you will need to take into account before making your decision. Doing your research into both options will help you decide which is going to be the right method for you.

As a homeowner, there are several choices you’ve got with your house. Whether you have inherited a property but already own another, or you’re looking to move away and aren’t sure what the right thing to do with your house is, this article is for you.

What are the benefits of selling?

If you decide to sell the house, there are several benefits –

  • It’s a complete break from the house, freeing you from any ties and responsibilities which can be a huge advantage for someone who doesn’t want the stresses of homeownership
  • Depending on any mortgage on the property, you can sell and take the profits to do with what you choose
  • If you need to, it’s easy to split the proceeds between other people, especially in the case of a house that has been left to more than one person in an inheritance
  • You can use the money to buy another house, which can be perfect if you’ve got a house that isn’t suitable for you to live in – for example, if the location isn’t good for you, or if there isn’t enough space for you and your family
  • You don’t need to maintain the property while someone else is living in it

As with any choice, there are also negatives to selling the house that you should be aware of before you decide in order to make the most informed decision.

What are the negatives of selling?

  • Long-term, you can lose out financially; property can often increase in value, and become more of an asset
  • It can be an emotional time, especially for those who have inherited a family home that they grew up in
  • You could lose out on a long-term financial income from renting that can often contribute to an early, or more stable retirement
  • Selling a house is a long and difficult process which can be incredibly stressful – it can also be costly if the house needs improvements

What about renting the property out?

You have the option to put your property up for rental purposes, which can be a great option for some homeowners but may not be the best decision for others.

The benefits of renting your property out are:

  • A rental property can provide you with a steady income, offering financial support alongside any other income you may have
  • There are several tax deductions available, providing you tax relief such as travel to and from the property, maintenance and repairs, and depreciation
  • You can split the income easily between any other people involved in the property
  • You’re able to put the property up for rent right away, letting you earn money right away – selling a house can take over 6 months which means you have to cover costs for the house in this time, whereas renting it will cover them and bring you a profit at the same time
  • If the housing market isn’t in the best place, you can rent until a time you’re more confident, or when the property market is in a more stable position offering you a better sale price

The negatives of renting your property out are:

  • The property will likely need some updating or renovations before it’s suitable to be rented
  • Depending on the amount of time you’ve got and the responsibility that you’re prepared to take on, you may need to consider getting an agent to manage it for you which will cost you – if there are any emergencies, like a burst pipe or broken boiler, you need to be able to deal with it ASAP, and agents are in a better position to do this than you may be as they will know engineers in the area already
  • You’ll be liable to pay tax on profits from the rental payments
  • If your tenants cause damage in the property, you’ll be responsible to deal with it. As well as this, if things get nasty and you end up having to apply for a court-ordered eviction, you can end up losing out on thousands of pounds over several very stressful months

There are also other responsibilities that you should take into account if you do decide to rent your house out:

  • You will be liable for any repairs to both the interior and exterior of the property
  • You will need to ensure the gas safety of the property and have this regularly checked
  • Any furnishings need to be fire-safe
  • The house needs to be to a standard considered fit for living

You will also need to adhere to several laws as a landlord, including:

  • Giving at least 24 hours of warning before any visits
  • Protect your tenant’s deposit in a government-approved scheme
  • Provide an EPC

Some homeowners thrive when renting out a property, and find it to be a great way to increase their income, however, the responsibilities can be too much for others, in which case selling is a better option. If you’ve been asking yourself the question should I sell my home or rent it out, the key is to do your research to decide which is the best option for you!

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