If you are looking to move house, there’s a lot to consider regarding what to do with your old property. The truth is, it’s not uncommon for people to end up becoming landlords involuntarily if their house has been listed for sale for a significant amount of time. However, before you decide to put your property on the market, you need to consider what is best for you.
To sell or rent: that is the question
This is a question that often comes to the minds of homeowners when they are considering moving to a new property. What is to be done with the old house? There are pros and cons to both selling and renting out your house, which we will discuss in this blog post.
Pros and cons of selling your house
In this section, we’ll list some of the main pros and cons of selling your property, when compared to renting it out.
Pros of selling
- Selling the property gives you more capital to spend on a new property.
- Although not completely stress-free, there is less hassle involved with the sale of a property when compared to renting it out. For example, there will be no unexpected repair jobs to attend to, or additional upkeep costs caused from tenant damage.
- Selling your property will give you the opportunity to diversify your investments, rather than putting all your eggs in one basket by renting it out.
- You don’t have to worry about looking after two properties, and you are free to move on with your life in a new home.
Cons of selling
- Selling your family home can take its toll emotionally and it can be difficult to part with a property you have referred to as your home.
- House are known for appreciating in value over time, so you may be selling off a lucrative asset that could grow substantially in value.
- Selling a property can be a time-consuming ordeal and can be a stressful process.
- Taking the time to sell your property may mean you can’t move into a new desired property until the original property is sold.
Pros and cons of renting your house out
In this section, we’ll list some of the main pros and cons of renting your property out, as opposed to selling.
Pros of renting your house out
- A constant source of monthly income if you have a tenant present
- Whilst earning a monthly income, your asset will likely grow in value.
- The handling of renting out a property can be a hassle; however, you can outsource this process to a qualified agent.
- A good option if you are only planning to move away temporarily, as it means you don’t have to search for a new property upon your return.
Cons of renting your house out
- You may need to spend money fixing up your property before you can rent it out. Redecorating, fixing appliances and refurbishing can all add up and make it an expensive initial proposition.
- If things go wrong in the property, it can be more expensive to maintain in comparison to the rent you receive from the tenants.
- Taxation on second homes is often much higher when compared to other forms of investments.
- Tenants can cause damage to your property which may not be covered by landlord insurance.
Scenarios where renting it out might be the best option
It will depend on your personal circumstances whether renting out or selling is the best option, but there are a number of scenarios where renting out your property might make the most sense.
Moving in with a new partner – If you and your partner are deciding to move in together and you both own a property, then it can make sense for you to rent one of them out. This can be ideal, as it allows you to test the waters of living together whilst making it relatively simple to move out again if things don’t work out.
Moving away temporarily – If you must move away for temporary work or are going travelling for a significant amount of time, your best option may be to rent out your property. This saves the hassle of selling your property and then having to look for a new one when you return. Renting out your property also gives you another source of income whilst you are away, which makes it an ideal solution.
The house is on the market but not selling – The longer a property stays on the market, the more unappealing it tends to become to potential buyers. It may just be that your property needs fixing up before it will sell, however, if there are no issues and the market is relatively quiet, it may be best to try renting it out.
Its best to consider which option suits you the most, and if you’re still not sure, it’s worth seeking expert advice.