Renting out your house to allow you to move

theartfullodger

nickpe wrote: »

............

..........

The Estate Agents have said we can expect 425 to 450 a month if we did rent it out - and this would cover the £350 mortgage so would gain a small profit which we could let build up if there were "void" periods.
...........

And when the tenant (or the letting agent ..) doesn't pay you for, say, 7 months?? And you have to keep paying the mortgage?? And all the legal charges to sort things out/get them out??

Apologies for being blunt but don't go into letting out property unless you have the emotional (ah, yes...) and financial reserves to cope with a real disaster.. (bad tenant, bad agent, major repair...)..


Cheers!

Artful

franklee

Were I struggle is you've realised the market is stagnant / falling so you want to double your exposure to it. If you are bet-your-life-savings-and-families-security-sure it's the bottom that might not be so bad but I wouldn't do it now. Why aren't trader-uppers who can secure their next house at a bargain price pleased to have saved something and reasonable when pricing their own property?

bigbeff

I did just that when I moved in with my boyfriend. I moved 120 miles to be with him, but didn't want to just sell my house because a - it wasn't the time to be selling, and b - I quite like being a house owner!! (I am renting now although looking to buy again).

I had no issues finding someone to rent my house - its in Dorset, nice seaside town. Two bed meant I could charge enough to cover the mortgage. I did have an issue with a tenant to begin with who did a disappearing act, and lost out just short of a months rent (although landlord insurance covers that). I now have a very good tenant in the house, who pays on time, keeps the place looking nice and gives me nothing to worry about. So it really runs itself and pays for itself (apart from any big work that may need doing).

Hope that answers your question - obviously it'll depend where your house is etc, but works for me.

Werdnal

Chandra, thank you for your valuable addition to this thread, but forum rules prevent advertising so I have reported your post to admin. Unless you want the whole post removed, please edit to delete your company details, otherwise moderators will step in and delete it for you!

This forum is not here to give free adverts for contributors - if you want to advertise your services, please go elsewhere!

PS Incidentally, I have also now read the other posts you have added to the forum, all of which are blatant adverts for your services (and all of which I have reported). Whilst advice from all walks of life are welcome here, please refrain from promoting your own business objectives!

G_M

Chandra-P wrote: »

Your situation is not unique and is actually becoming more common - I am a letting agent and have seen a few 'accidental' Landlords entering the market now.

...........


Hope this helps. Heres my plug(!) We are an online lettings agent and can let your property for a one off fee of £59 - No commision (juicy or otherwise). ....... Thanks.

OP - ignore any advice from someone with a vested interest, like this 'agent'.
And NEVER employ an agent on the basis of
a) the fee they charge or
b) some web marketing like this

Selecting the right agent is as important as selecting the right tenant. I refer you again to the post here which covers agents selection as well as 100 other considerations.

kelloggs36

I would avoid unless you can afford to pay both mortgages as a matter of course. I ended up like you unable to sell, by then bf (now husband) bought his house which I moved into. We got a tenant in who trashed the place, causing even more negative equity (we had 15k neg to start with hence the reason we couldn't sell) which led to 25k neg equity. They also didn't pay all the rent, so the mortgage didn't get paid in full, then my ex ran off with the rent payments received by housing benefit, which in the end led to the repossession of the house and a 25k bill at the end of it. Luckily for me I was living with bf in his house and so wasn't homeless but it was a nightmare and to this day some 15 years later I STILL can't get another mortgage in my name!

Werdnal

G_M wrote: »

OP - ignore any advice from someone with a vested interest, like this 'agent'.
And NEVER employ an agent on the basis of
a) the fee they charge or
b) some web marketing like this

Selecting the right agent is as important as selecting the right tenant. I refer you again to the post here which covers agents selection as well as 100 other considerations.

GM I totally agree with your comments, but now having "Quoted" Chandra's post, when I have asked mods to remove the advertising (as I have all the other posts Chandra has put here blatantly promoting their own business against forum rules), this will remain in your quote even when Mods remove from Chandra's post. You may therefore want to delete the offending para from the quoted section in your post!

Just a suggestion

nickpe

Guys the advice in here really is so varying but insightful !!! And i always get both sides of the story which is making me more and more undecided as to what to do !!!

I guess if i stepped back totally from the situation and look at where i am today, - heres me...... I am 29 years of age and ive worked all my life been a hard grafter and have managed to save £15k which is in the bank now.
I have a decent but nothing too fancy lifestyle and enjoy a healthy standard of living.
The money i have is not needed for fancy clothes or cars etc but it is there and its not really doing much.
Now the one thing in our life that me and my partner do need is a bigger house as we would like in a few years children - so hence why we are looking to buy a bigger house.
We have seen the house we love (its on Rightmove on postcode S63 9GH -its the 3 bed detached at 105k)........... its literally our dream home and i would have no aspirations to move again if we could get it.
Now the only reason i have "considered" renting my house out is because i cant think of any other ways to manage to get it!!!.....im not a greedy person BUT i am very mindful of considerations such as interest rate rises on the tracker on the house that i have now (which would be rented out) - meaning potentially the rent i receive could in the future not cover the mortgage..... So im literally lost on a plan of action.

Another reason im thinking to act now is because (and please somebody put me right if im wrong), the house that we want would 2 years ago have been approx £40k more expensive.... but our house was only valued £15k more back then than it is now..............not sure if ive made that point clear but in essance houses that we COULD NOT AFFORD 2 years ago now seem affordable.......IF i can sell my house !!!!

navmanwestmids

as long as you can cover the voids.... go for it!!! get a consent to let untill the market has recovered slightly.

G_M

navmanwestmids wrote: »

as long as you can cover the voids.... go for it!!! get a consent to let untill the market has recovered slightly.

and pay the tax, and cover the repairs/maintenance, and deal with the tenants and agents, and cover the defaulting tenants, and repair the damage they cause, and pay the CGT when you sell, and ...and...

I'm not saying don't do it.

And I'm not saying all these negative things will happen - they usually don't.

But you do need to understand them and go in with your eyes open.

Hence my link here.