Landlords: Should you sell or let your property?

Landlords have two choices regarding their properties: selling or renting. Some landlords don't consider both possibilities and believe that selling their home and receiving a one-time payment is the best course of action. This blog, however, was created to let landlords know that there is an alternative and that it may not warrant as much work as it first appears to. However, investing in the rental property market may be a very lucrative road, even though the initial lump sum can be a very generous amount. Both options have advantages and disadvantages, which will be discussed in this blog.

Selling the property:

Advantages

• For many years, house prices in the UK have been rising and are at an all-time high;
• The property won't require any maintenance or upkeep;
• No need to pay for the mortgage.

Disadvantages

• Once the property sells, you wont have the opportunity to reap the benefits of any potential value increases;
• There are many additional costs that will hinder when selling, for example; conveyancing, clearance costs e.c.t ;
• Tax implications;
• May have to invest into renovations to be able to meet the selling/ buyers requirements. 

Letting the property:

Advantages

• There's a continuous high demand for rental properties throughout the UK;
• You will receive a set, predictable monthly payment;
• After a period of time, the rent payment you receive will exceed the value that you would have got from selling;
• Tenants, when properly selected, will treat your home with the up most respect and care, providing you with the security you deserve;
• Keeping the property will allow you to avoid any tax implications;
• The property will be passed onto your children, or loved ones of your choice.

Disadvantages

• Rental property management; you have to ensure all management is taken care of;
• Tenancy voids can impact your income greatly;
• Investment into your property to ensure it meets the rental standards.

Decided to Let?

If you've decided that renting out the property and becoming a landlord is the correct path for you, the next step is to decide whether to work with an agency that handles property management or to tackle it alone. However, the various drawbacks mentioned above that come with renting out the home can be significantly decreased by using a management agency.

Benefits of using a agency:

In actuality, there are numerous other advantages for a landlord who utilises a property management business, such as:

• Guidance and appraisal to guarantee your property is listed at the right price.
• Assistance in locating suitable tenants and have the capacity to reach a large and attentive audience in order to prevent tenancy voids.
• Renters will then undergo the proper financial screening to guarantee their appropriateness and financial stability.
• You will be provided advice on safeguarding the deposit made by your tenant.
• Support being aware of your legal responsibilities and making sure the property complies with the complicated, constantly evolving legislation and regulations that apply to rental properties.
• You will have more time to engage in other hobbies or work while the management team handles tenancy agreements and checks.

The year 2024 has seen the implementation of numerous additional regulations in this sector, which you as the landlord will be forced to consider; the help of an agency to manage.