Some would-be sellers are reluctant to sell their home in view of the high cost of moving, or selling for what they regard as too low a figure to enable them to fulfil their plans. Others may be moving abroad and don’t necessarily want to commit to selling their UK home just yet. Maybe you’re keen to move but don’t want to “cash-in” the investment potential of your property at this time.
Many people are therefore deciding to let their property instead of selling it. This makes good sense for several reasons. Firstly, if your rental income at least covers your mortgage payments, especially during this time of low interest rates you effectively gain a “free” investment, although do consider the costs of letting your property, such as tax, insurance and management charges. You’ll also need to let your lender and insurer know.
The chances are that as an owner occupier, you could well achieve a fast let, with an excellent rental income. This is because you will be competing with buy-to-let properties that will not usually be presented to such a high standard as a property in which the owner is actually living, and which therefore feels like a home.
However, there are many issues to consider before letting your property out. It’s not just a matter of finding a tenant. There are over 100 pieces of legislation affecting landlords of which you should be aware, including fire regulations, other health and safety issues, deposit protection, rights of tenure, etc.
Letting has become a complex specialist field, and we strongly recommend that you don’t go it alone. Why not contact us for a free consultation with one of our experienced lettings experts. We won’t bore you with all the legal stuff, but as your investment managers, we’ll do our best to help you make the most of your property and its potential.