The New Landlord
25 Nov 2011
As the property market tightens further, many would-be sellers are simply not prepared to sell their home for what they regard as too low a figure. It may be that the realistic current price of their property falls below their mortgaged amount, putting them into a negative equity situation. Perhaps, they want to downsize, but the fall in the value of their own home has outpaced the fall in value of their new purchase in cash terms. Or maybe there is simply the feeling that it would be mad to sell such a large investment at what might be regarded as the bottom of the market.
So, many people are deciding to let their property instead of selling. This makes good sense for a number of reasons. Firstly, if your rental income at least covers your mortgage payments, which may well have dropped recently due to interest rate reductions, you effectively gain a “free” investment, although do consider the costs of renting such as insurance and management charges.
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 has actually lived, and which feels like a home.
However, there are many issues to consider before letting your property out. It is 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, deposit protection etc 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?