Difficult decision

LivingintheSun

Our house is on the market just now. It had plenty of viewings, all very positive feedback, but no offers.

We are currently overseas, in a rental, and are looking at our options. The area our house is in has a definite selling season, and TBH if it doesn't get an offer in the next month it's unlikely to sell before the winter is out.

Spoke to the EA, and many friends in the area, all of whom have said the market has just dived lately. Close family members who've had their house up for sale for the same period are struggling to even get viewers.

The EA has suggested renting the house out. We know the rent we could expect wouldn't cover the mortgage, but it would go some way towards it. Plus we could actually ship the remainder of our stuff out and move into an unfurnished rental here which would be cheaper than the furnished rental we're currently in. We know it would be virtually impossible to sell the house with a tenant in it.

What would you do? Keep trying to sell or rent? If we don't sell, we can't buy anything where we are. What pitfalls should we be aware of? What costs are there associated with renting the place out? The house is in Scotland, I believe that makes a difference?

I should add that our move overseas has been fairly stressful and not entirely successful so far, but we are persevering. So there is a possibility that we may choose to move back at some point. Also we are dependent on one wage at the moment as I don't have a work permit yet.

Any thoughts or views are welcome!

BornAtTheRightTime

LivingintheSun wrote: »

I should add that our move overseas has been fairly stressful and not entirely successful so far, but we are persevering. So there is a possibility that we may choose to move back at some point. Also we are dependent on one wage at the moment as I don't have a work permit yet.

Any thoughts or views are welcome!

Rent it out. Buy yourself time to evaluate whether the move abroad is going to work out for you. Keep the house as a safety net for now. By spring, the next decent selling season, you may have a better idea of whether you've gone for good.

wodgerdodger

We did almost exactly what you are proposing,we let our home here andrentedin Spain and after 18 months decided not for us and moved back.
We regretted renting our "home" out as on the return we had many issues to sort out and in effect completely redecorated.The garden hadnt been maintained and some repainting carried out plus damage to items. It took us 3/4 months to sort out and back to the condition we left it in.
Despite all the items mentioned being laid out in the lease including being professionally cleaned on departure the deposit didnt cover alltheitems.In fact although we appealed tothe Deposit tribunal they did not uphold the need for professional cleaning or garden maintenance .
Full management charges were 10% + VAT plus of course getting gas certificate/epc etc. One tenant left with 2 months rent owing which was largely covered by insurance. But what was annoying and frustrating were the petty issues raised by a tenant for small repairs which involved getting tradesman to sort out. On moving in she reported that two radiators weren't working so an engineer was sent into find that the previous tenant had simply turned them off....£50 to get someone to turn a valve on the radiators or the £65 cost for replacing a handheld shower hose.

When we weighed up the cost of the charges, lost rent, tax and remedial works on our return plus the incalculable stress of being an absent Landlord we would never ever rent out our HOME again. If it were an investment property then our view would be altered as there would not be the same emotional tie .

Think very long and hard what would you gain and dont assume there will be no voids,no arrears and no repairs.

tbs624

Your post is a useful indicator of the sort of issues that can and do arise. However, some of the difficulties may have been down to your novice status

wodgerdodger wrote: »

Despite all the items mentioned being laid out in the lease including being professionally cleaned on departure the deposit didnt cover alltheitems.In fact although we appealed tothe Deposit tribunal they did not uphold the need for professional cleaning or garden maintenance .

LLs have to be thorough with their inventories or they will fall down when it comes to deposit disputes. Did you have professional cleaners in at the start? Even if you can prove the condition, you can only ask your Ts to "clean to a professional standard" when they leave. You need to have decent photographic evidence of the state of a garden and if you are a fanatical gardener, allow for the costs of a fortnightly gardener.

Full management charges were 10% + VAT plus of course getting gas certificate/epc etc. One tenant left with 2 months rent owing which was largely covered by insurance. But what was annoying and frustrating were the petty issues raised by a tenant for small repairs which involved getting tradesman to sort out. On moving in she reported that two radiators weren't working so an engineer was sent into find that the previous tenant had simply turned them off....£50 to get someone to turn a valve on the radiators or the £65 cost for replacing a handheld shower hose.

Did you or your agent leave a folder of instructions for the heating system, white goods etc? Experienced LLs do, as well as physically checking the heating through with the T at the start of the tenancy. Did you not have a mate or a family member, or a friendly "man who can" lined up , who could sort out things such as a shower hose replacement? Any maint job done via an EA on full management will come with an automatic add on to the true cost. Having lost rent issues suggests that the LA has lax procedures for tenant vetting.

wodgerdodger wrote: »

When we weighed up the cost of the charges, lost rent, tax and remedial works on our return plus the incalculable stress of being an absent Landlord we would never ever rent out our HOME again. If it were an investment property then our view would be altered as there would not be the same emotional tie .

Think very long and hard what would you gain and dont assume there will be no voids,no arrears and no repairs.

That's good advice.:)

Obviously, if you are living abroad, you have to rely either on a friend/family member to deal with the tenancy or use a letting agent: LAs are not regulated, or required to have any specific training or qualifications before setting up in business so you need to know what your obligations/rights are and have a firm hold on that relationship.

wodgerdodger

Hi TBS, with regards to all your points; yes we were novice landlords but not unprepared nor totally ignorant.There was a full inventory,photos before and after full folder full of all essential appliance guides and contact points for services and let through a specialist ARLA registered agent.So do not think we cut any corners however very dissappointed with Deposit arbitration service which in our opinion balanced towards tenant rather than landlord...just my view.

You cant and shouldnt however bank on model tenants and if its your "home" you are letting out then any negatives are multiplied.

LivingintheSun

Thanks for your input. When the move abroad first came up I was adamant I would only go if we could keep the house. On arriving here, rose-tinted specs made me all excited at the prospect of buying somewhere new. Friends also said they didn't feel settled until they bought their own place. That makes sense to me, but it's an impossibility without selling our current place though. However, getting into a bigger unfurnished rental might well work as as least we can get all our own stuff over.

I do feel that there's a strong possibility that we may not want to live in the house after it's been rented out - even if we get the world's best tenants. However, if we're going to sell it eventually, I feel we might as well try and mitigate some of the costs in the meantime by renting it. My thought is to rent it unfurnished if possible.