Should you rent out your house or sell it?

Deciding to sell your home is a big decision and renting out your house comes with lots of responsibilities so it is no wonder you may not be sure what to do. We have compiled a guide on exactly that: whether to sell your house or whether to rent out your house. Take a look at our guide to understand what works best for you to help you decide your next move.

A good way to help you decide whether to sell your home or whether to rent out your house is to list the pros and cons of each. So to make things simple for you, we have done precisely this for you here. 

Some of the pros of selling your home are as follows:

• you gain money to buy another home through the release of equity in your current home
• if your home is the main residence you avoid the cost of capital gains tax
• your responsibility does not increase as you continue to only have one property
• having less responsibility means  less time consumed regarding property issues
• there are fewer unexpected costs such as those associated with unwanted actions of tenants such as damage resulting in repair bills
• you get to move onwards with your life elsewhere

Of course, despite the pros of any property transaction, there are cons too. If you want to sell your house, consider these cons first:

• if your house price increases you will not reap the rewards of this
• If the value of your property has not yet reached the cost of your mortgage, you will have to pay the difference
• the process of selling a property can be a long one
• the risks associated with being in a long chain

If renting out your property is something you like the idea of, you may wish to consider the pros for this. Here we list a few:

• you receive extra regular income from rental payments
• a good tenant will look after your property
• the rent payments can pay your mortgage payments so you no longer have to worry about this and you may still have some money left over
• you enjoy the benefits of long-term capital growth as your home is still owned by you
• you can ask someone else to carry out landlord responsibilities such as an agent who is a member of NALS, ARLA or UK ALA
• if things change, you always have a house that can become your home again such as if you have moved out of the UK but wish to move back  again,

Deciding to rent out your house comes with commitments which can be cons to renting out your property. We list a few here:

• properties need to meet certain rental standards which often change (there are over 400 rules to consider) so you may need to spend money meeting these
• renting your home may require you to pay related maintenance costs
• you will incur the cost of stamp duty as you will own more than one property
• if you change your mind and sell your property, you could incur the cost of stamp duty.
• the role of a landlord is very time-consuming
• you could lose current benefits such as child benefit if the income from renting out your home means you earn £50,000 or more
• it can be risky renting out your home if you can't find a tenant or the ones you find damage the property or fail to pay rent

If you decide to sell your house, there are costs associated with this. These will depend on who you use to sell your house such as a property agent, quick house sale buyer or traditional estate agent. If you use an estate agent, for example, you may endure the following costs:

• early mortgage fee costs
• legal fees
• commission costs
• the price to advertise your house
• the cost of any home improvement required

Whilst renting out your home will incur a useful regular income stream it does incur costs. As mentioned earlier one of these is maintenance costs such as repairs. However, there are other costs associated with renting out a house you should be aware of such as:

• accountancy fees
• property management fees
• advertising and tenant checks 
• Homeowner Association Fees (HOA fees)
• mortgage payments 
• safety inspections
• electrical safety checks
• bills when your property is not being let such as council tax and utilities

You may also have to pay higher income tax rates as the rental payments count as income. And a final cost we leave you with is whether you can afford your mortgage payments during periods when your property is not being rented or if tenants fail to pay?

Still unsure of whether to sell your house or rent it? If so, you must seek professional advice before you make that decision. You are then more likely to make the best decision for your circumstances.

Homeward Legal are experts in helping property owners like you sell your house so you have picked the right conveyancing service by choosing us. 

Conveyancing is typically where you sell your house, buy a home or remortgage your property. If you are thinking about selling your property and need a residential conveyancing solicitor we have competent solicitors with extensive experience to assist you. You can rest assured you are in safe hands with us as our solicitors are all regulated by the relevant bodies for both legal advice and conveyancing.

The property market can be tricky to navigate at times and this includes when selling your home. It is a huge decision to sell your house and one of the largest financial transactions you are likely to make so you want to get everything right and make few, if any, mistakes on your journey We understand that and that is why we look after the process when you sell your house.  

Whatever your conveyancing needs, contact us today at . If it is easier for you to drop us a quick line, you can jot one down here. We can also provide a fast quote online to give you an idea of how little we charge to help you sell your house.

With Homeward Legal, no matter what your conveyancing needs, you can trust us to help.  Our mission is to make selling or buying a property an easy process without breaking the bank. Despite our competitive fees we only offer the most competent property solicitors throughout England and Wales to ensure you have clear and accurate guidance for all your conveyancing needs.

Let Homeward Legal assist you when selling, buying or remortgaging a property. Call today. You can also send us a message here and get quick and easy quotes online.

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