Is It Worth Selling Or Renting Your Property?
In today’s market, many landlords are questioning whether it is worth selling their property. Due to the cost of living crisis and inflammation, many landlords are questioning selling their property. After all, inflation has affected mortgage rates massively.
Sometimes, a landlord is forced to rent out their property. Did you know, it is believed that around 30% of landlords are recognised as ‘accidental’ due to being unable to sell their property?
For several landlords, it has benefited them as they have managed to build a portfolio for buying to let. Nonetheless, it hasn’t been great with the majority of landlords, with many tenants causing damage to the property of those accidental landlords. Leading landlords seeking landlord legal advice for dealing with those tenants.
Some will benefit massively when being landlords and others will miss out massively.
Pros and Cons Of Renting Out Property
As with everything, there are pros and cons to renting out your property. For example, they can help you move home because you are unable to sell the property. It can also be outsourced to an agent. Furthermore, sometimes you can get lucky with the tenants you are renting your property to, meaning you build a good relationship with them and your property remains unscathed. It is another income, also known as a passive income, leading you to secure capital growth.
There are still many issues with renting out your property. Firstly, you might need to invest money into the property to ensure that it meets any legal requirements. For example, you may need to hire a plumber to install a new boiler which can be costly. Sometimes, you can get the worst tenants, who damage your property, with some even setting up cannabis farms.
Sometimes, the market can leave you short on money, leading to you losing both properties. Moreover, keeping up with the different rules and regulations can be difficult, which is why you may require a landlord adviser to help with these issues. As mentioned earlier, renting a property can be expensive, especially when maintaining it.
Pros and Cons of Selling Property
There are numerous positives when it comes to selling a property. For example, you will be able to spend more on the next property you buy with the cash you received for selling up. Furthermore, any additional money earned on the new property you obtained is free of capital gains tax. Finally, it is less hassle once sold as you do not need to worry about any future repair bills or tenants damaging the property.
So, what are the cons of selling the property? It could increase in value due to new developments around your area. It can also contribute to your pension in the future or, it can be emotionally challenging to let it go once it has been sold.
To Conclude
There are many pros and cons when it comes to renting a property. One of the biggest issues is tenants, the damages they cause can be irreparable, meaning your property may drop in value. If this is the case, you should contact a landlord solicitor to see what you can recover.