What would you do ? Rent or leave empty

tlc678910

Hi,
Despite the potential problems I would rent the house out.

If you leave your house empty and your move ends up being for several years your property will deteriorate as it will not be properly heated and ventilated. If there is a leaky pipe or roof (for example) it could run for weeks without being corrected. It is also not great on a moral basis to leave a house standing empty when homes are desperately needed.

Renting your property out has lots going for it if it is in a good area and so likely to attract lots of interest allowing you can choose tenants carefully. I would price the place competitively so you have lots of interest and choose tenants that can prove they can afford the rent and have good employer and landlord references.

If you know your boundaries e.g. no pets/ only people who can prove they can afford the property, then make them clear up front or make sure the agent knows this to avoid wasting people’s time.

As you are a novice to letting and are moving away I think it is worth using an agent who will help guide you to meet all your legal obligations. You might not know much about the letting service of local agents but if you remember or ask around which agents were professional when you were viewing and buying (and they offer a letting service) that’s a good start.

It focuses the mind to think letting at £700 for two years you would receive £16,800 (before tax) which even if you paid 40% tax on the whole lot (which you wouldn’t as you will have expenses) would leave you with £10,080 towards your mortgage/ insurance/ maintenance etc compared to leaving the property empty.

Reading the forum you will read about how letting out is less attractive due to new taxation rules but this is more relevant to letting a property versus not owning it rather than letting compared to leaving it empty when you have all it’s expenses regardless.

There is always the risk of non paying tenants but in your case it is mitigated by the fact you suggest you can afford to keep the property empty and by being very cautious with the tenants you choose.

As someone who rents yourself make sure you treat your tenants how you would like to be treated and give them lots of notice if you need the property back. More than the statutory minimum of 2 months. Save a decent emergency fund so you have the flexibility to do this.

Good luck
Tlc