Some would-be sellers are simply not prepared to sell their home for what they regard as too low a figure. If you fall into this category, it may be that the realistic current price of your property falls below what you would need to fulfil your plans. Or maybe you’re keen to move but don’t want to “cash-in” your investment just yet.
Many people are therefore deciding to let their property instead of selling it. This makes good sense for a number of 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 insurance and management charges. You’ll also need to let your lender know.
The chances are that as an owner occupier, you could well achieve a fast let at a high rent, as you will be competing with buy-to-let properties that will not 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 is extensive legislation in place of which you should be aware, including fire regulations, other health and safety issues, and deposit protection as well as insurance certification, lender consent, 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, and we’ll do our best to help you make the most of your property and it’s potential.
Neil Newstead, FARLA MNAEA
CEO – Oakfield Estate Agents