Rent or Sell, what to do??????

[smokeysmoo]

Long story short.

Mrs Smoo inherited her Grandparents house recently, although it has to go through probate etc so it's not available to do anything with just yet AFAIK.

Question is should we rent it, (2 bed terrace, not in a great area TBH), or just sell it? SWMBO has always said she just wants to sell it, but I've always lent more towards renting it out, but recently she has shown a little interest in the renting option.

Looking for anyone whose been through the same. I know the pitfalls of renting, but it would be given to an agent and we'd have nowt to do with it basically, got no interest in being a private landlord.

T.I.A.

 

[Phaeton]

Not been in the situation but do you need the money now, are prices still rising in the area, if the answers are no & yes, then I would consider renting for a couple of years, see how it goes, if okay then continue, if not you can serve notice of termination & sell.

 

[smokeysmoo]

Not been in the situation but do you need the money now.

The money would be nice, but then again so would an additional few hundred quid a month.

then I would consider renting for a couple of years, see how it goes.

That's pretty much my train of thought.

 

[Dave7]

I only know 2 people who went down the buy to rent route.......it was a nightmare for both of them. They both ended up selling and walking away.

 

[Slick]

Using an agent is no guarantee of success. We did it for a number of years and both Mrs Slick and I has different feelings about it. Financially it made perfect sense despite a substantial renovation project. The reality of having to deal with one or two of the tennants we had was another matter until we finally rented it to an elderly widow who was looking for single storey living. She loved it that much we eventually sold it to her and is still living there now.

 

[vickster]

What's your tax situation generally, worth considering if planning on renting out. Might you have to pay CGT if the value rises, as well as IHT?

@Brains is a landlord iirc

 

[smokeysmoo]

What's your tax situation generally, worth considering if planning on renting out. Might you have to pay CGT if the value rises, as well as IHT?

@Brains is a landlord iirc

You might as well be speaking Greek TBH vickster

But it's something I'm sure the solicitors will explain if it applies

 

[welsh dragon]

Renting is a Good option sometimes, but you have to Make sure that everything is checked professionally like gas and electrics and you have all the paperwork to go with it. That can cost a bit.

Then there are no guarantees that the renters will look after the place. You could be lucky and get wonderful people, but....

Then you have to consider if you are going to do the renting yourself or go through an agent. Again going through an agent will cost you.

Add all of that up, then decide if it is worth it.

I hope you make the right decision and it all works out for you. Good luck

 

[smokeysmoo]

There are no guarantees that the renters will look after the place. You could be lucky and get wonderful people, but....

That's the big worry. The agent I've spoken to will vet the tenants, deal with the utilities etc, and simply pay the money into our account, for which they want 10% which I didn't think was bad, but then again I've nothing to compare it too.

Renting is a Good option sometimes, but you have to Make sure that everything is checked professionally like gas and electrics and you have all the paperwork to go with it. That can cost a bit.

I know you need a gas safe and electric safe certificates, but I don't think they're particularly expensive, and the house is about as basic as you can get TBH so any checks are not going to take very long.

I hope you make the right decision and it all works out for you. Good luck

Thanks WD

 

[Cycleops]

I know the pitfalls of renting, but it would be given to an agent and we'd have nowt to do with it basically, got no interest in being a private landlord.

T.I.A.

But you would be a private landlord and any repairs, safety issues, maintenance and upkeep would be down to you. I'm a landlord and I can tell you having a good agent makes a big difference, you wouldnt want to do it all yourself. Typically they take around 10%. They need to have a thorough vetting process for tenants. I've only had one bad one in several years but it is a pain.
Safety certificates are not too expensive.

You'll also pay tax on the income of course. If you don't want all the trouble sell it but you may want to hold on to it to hand on to your children.

 

[smokeysmoo]

But you would be a private landlord and any repairs, safety issues, maintenance and upkeep would be down to you. I'm a landlord and I can tell you having a good agent makes a big difference, you wouldn't want to do it all yourself. Typically they take around 10%. They need to have a thorough vetting process for tenants. I've only had one bad one in several years but it is a pain.
Safety certificates are not too expensive.

I appreciate that and I know plenty of tradespeople too, so I can always call on folk if the need arises.

The agent I've spoken to is local and has been in business for 40 years. I wouldn't entertain these fly by night outfits just to save a couple of percent

 

[Slick]

Sell it, invest it long term with a broker to spread your risk.

 

[nickyboy]

Is the property close to you?

If it isn't, I'd definitely sell it. I have exactly this situation, having recently inherited my mother's house. It's about 80 miles away and renting it out and dealing with repairs and maintenance is more trouble than it's worth. It's being sold

If it's close and you can afford the time needed to keep on top of things maybe rent it out. You also need to consider the emotional impact of potentially having a crap tenant who trashes your grandmother's house

 

[Cycleops]

I appreciate that and I know plenty of tradespeople too, so I can always call on folk if the need arises.

That's a good idea as I'm sure the agents take s
a kick back from the trades people they use although they deny it.

 

[Pale Rider]

You could do a simple return on capital calculation.

Nett amount of rental income compared to what interest you could reasonably expect on the sale proceeds if cautiously invested.