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6th May 2022|Sales|Lettings|New Homes|

Should I sell my house or rent it out?

Should I sell my house or rent it out? It’s an age old question, especially for those hoping to move, or offload parts of their property portfolio, an important question must be considered. Are you going to be a vendor or a landlord? Unfortunately, the answer is not a simple one, with a plethora of factors in need of serious consideration before your property is listed on either the rental or sales market. If you’ve ever asked yourself “Should I sell my house or rent it out?” we’re here to help and in this article we’re going to explore the benefits of both selling and renting, as well as the disadvantages of each option, so that you can make the most informed decision about the future of your biggest financial asset.

Selling Your Home: The Benefits

The buoyant post-pandemic property market is proving fruitful for sellers, with January 2022 yielding the highest average sales price on record. With your chances of achieving a good price at an all time high, there is no better time to list your home on the market to release equity for your next purchase: after all, in the event of a market slump, you’ll end up with fewer funds to put towards your onward purchase, so sellers are advised to take advantage of the current market. What’s more, any money you spend to add value to your home won’t be lost in capital gains tax if it’s your primary residence, regardless of when you sell. If you are considering selling your home now, or in the near future, check out our expert selling guide for those hoping to list their homes and have a successful, swift sale.

Selling Your Home: The Issues

The property market is stable, solid stalwart of many but on occasion it can take you by surprise and become more unpredictable and, like any large purchase, always poses risks. Data collected by Which? saw the number of residential sales in England reduce from 190,000 in June 2021 to less than 70,000 just one month later. Although the pandemic may be responsible for this, especially due to ever-changing government legislation and ambiguous job security, this demonstrates that the housing market can at times be volatile. In the same vein, listing your property during a hot market does not mean that it will sell within a hot market. Even if your home sells quickly, and for a fantastic price, delays from your purchasers in selling their home, or troublesome contact with your solicitors, need to be accounted for in order to ensure a well-timed exchange of contracts. It is therefore imperative that sellers consider the agent they choose to list their property very carefully, with experienced representatives undoubtedly making the sometimes difficult property market much more easy to navigate.

Renting Out: The Benefits

When considering a house move, or potentially reconfiguring your property portfolio, your first thought might not be to start finding tenants, but letting your property with an estate agent is worth considering as an alternative to the permanence of selling. Letting your property is typically a much quicker process than selling, provided you have all of the relevant documentation and certificates to hand. With the rental market at a 13-year high, finding a tenant, especially with an experienced letting agent, should be a relatively quick process, and can be a great option for those wanting to move quickly whilst retaining their asset. Letting your home with an estate agent is also beneficial for homeowners who suspect that the value of their property will rise over time, with many vendors wishing to keep hold of their assets that are likely to accrue in value. This is a particularly attractive option for those with second homes or property portfolios who effectively find themselves in a position to finance their onward purchase without selling any properties. For those worried about keeping a close eye on their property during any prospective tenancies, many agencies – ourselves included – offer full-management packages which includes regular property inspections. It is absolutely worth noting that finding the right tenant for your property can make a difference to your yield, void periods, and longevity of tenancy, but with rent accounting for approximately one-third of tenant’s income, good tenants will look after their rental home to the best of their ability.

Renting Out: The Issues

Lettings legislation is ever-changing and although your managing agent will be able to navigate the ever changing compliance landscape with you or for you, if you prefer, there are still costs to consider upfront. One of the most significant changes in compliance needs is to Energy Performance Certificates, with a rating of ‘C’ being compulsory for all rental properties by 2025, which will undoubtedly have an impact on landlords: 52% of landlords are considering selling their properties to avoid instituting these changes. Beyond these imposed changes to tenancy regulations, it is also necessary that all general maintenance issues that occur throughout your tenant’s stay are dealt with promptly and properly, which need to be factored in by the property owner. Whereas your property could be listed warts-and-all on the selling market, and the maintenance costs be transferred to the new owner, any real issues must be dealt with quickly during a tenancy and are typically the responsibility of the property owner, not the residing tenant.

If you’re still asking yourself “Should I sell my house or rent it out?” we’re here to help. If you have a property to sell or rent, or are hoping to re-evaluate your property portfolio then Centrick’s team of experts can help you make the right choice – contact us using the form below so we can get you moving!

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