Should I sell my Rental property

Stubod

...do yourself a favour and sell it..........

RogerPensionGuy

Being a small private landlord certainly looks like more and more hurdles in the future. 

Could opening poster just show the basic numbers, like sale price 250K minus the 20K mortgage us 230K cash maybe. 

Let me use 200K for easyness. 

Maybe plonk 20K PA for a good few years in to a S&S ISA. 

Maybe use some of the 200K to pay off main mortgage if that looks suitable considering all dynamics. 

Maybe pump up pension contributions hopefully via salary sacrifice filling a pension aggressively and use some of that 200K to augment cash flows for living and life. 

***

On a side note, the 1.5 Million new houses in 4.5 Years looks most unlikely and population looks like it will keep rising, so the government may get even more heavy handed with small landlords and people who own more than one house. 

I rented houses back in the day and it worked very well for me overall, I didn't like the everyday issues and lodgers dodging rent payments and not doing sensible cleaning, ventilation and generally not taking nice care of the rentals, but some lodgers were great, salt of the earth so much that I reduced rent on occasions and long rent freezes because they were so excellent. 

gwynlas

the last goveernment made things harder for private landlords and this government is threatening to make further changes in favour of tenant rights.
I think that you should sell and invest the proceeds.
You have not said whether you and your paartner are married or in a civil partnership so you should also be looking at formalising your agreements about finances, potential serious tllnesesses and making wills to protect both of you in the event of early death.

christinajane

Ive messaged the estate agent this morning regarding the selling or possibly serving notice - I have yet to hear back. Probably nothing will be discussed properly until the new year. The next rent is due on the 18th December. The rent hasn't been increased for 4 years as well, since he has been there really, and I know properties around that area go for £100 or £150 more than what I'm charging, so he can't complain about that. 

It feels like there would be less stress now and in the future if I were to sell it because I keep hearing that landlords  have less and less rights, which is why Im wondering how easy is it to serve someone notice even if theyre not paying rent if thats the path I decide to go along?!

I guess my main question is - does it make more financial sense to keep it, if say I can get a better tenant in, or is it actually financially better to sell, like one person said above, stick 20k PA in my stocks and share ISA that I use to invest in the s and p 500. I've read that once you hit 100k in an investment compound interest really starts to take affect...I know investments do go up and down but generally they go up especially the S and P 500. This is all trying to predict the future but there must be a more financial right path to go down..?

My partner and I are not married she has one dependent I technically have none. We do have life insurance that would pay off the main house in case of early death but thats about it. 

Appreciate all your answers so far - thanks very much. 

RAS

You really do need to learn about being a landlord if you are asking these sort of questions. Read the stickie on the front page of this sub-forum as a start, although the author was PPRed so it still refers to some Cpvid regulations, for a start.

By law you are legally liable for any deficiencies even if you have an agent "working for you."

It's you that will have to pay the up to 3xdeposit penalty if the required information wasn't served correctly at any time in the last 4 years.

It's you who will be funding the cost of legal fees if your agent hasn't complied with all the regulations required to serve a valid S21 notice. 

This isn't a job for anyone not committed to learning and understanding their legal responsibilities, with deep enough pockets to weather a tenant from hell.

dinosaur66

sounds like it is stressing you out a lot

in which case sell it

you will get 4.0 plus interest just sticking it in a 2 year bond and no more stress

tell the tennant through your estate agent or in person you want to sell up completely / do not want to be a landlord anymore and need an empty property in order to sell it as there are no new landlords taking over exsisting tennancys and cannot sell it with a sitting tennnant /

i am a landlord/ this is the truth unless you take a big loss on open market price.

i had a case where i wanted a property sold

give them 6 to 8 months to find a new place ( i gave mine a year )/ tell them you will pay for all there removal costs to there new property as soon as they have found one and then honor that / dont be to picky about condition and deposit on day of removal / its worth it to have an empty property you can spruce up and sell empty chain free.

 use the court way as a last resort

when the new law comes in for renters you will be able to evict anyway if you wish to sell the property and not rent it out again.

[Deleted User]

Because you are nearly mortgage free on the BTL you are turning over a higher profit than many. 

However, the ability to leverage a smaller investment at say 60% LTV at low interest rates is gone. That was the era when BTL really saw the money invested working hard for the investor.

You need to fight for more profit but you don't increase rent, capital gains tax creeps, and your tenant is indisciplined.

I suspect that you would see better returns in other investments which would be passive.

ReadySteadyPop

christinajane said:

Bought the house in 2012 - lived in it for about 8/9 years. I wanted to keep it instead of selling it at the time because I thought it would make up for me not having a pension and obvs I would have rental income etc until I decided to sell it when i am close to retirement. 

This tenant  though had made me think am I better off selling it now and sticking that profit into investments. 

Am I right in saying this earns you about 20 quid a day? That would be an hours overtime for many people a day, is it worth the stress for that? I would caution against thinking about "profit", it would need a buyers valuation and a completed sale before you can actually count on a certain amount. I would sell it now as there is a strong chance of borrowing costs going up next year when Trump starts in with the tariff plan.

christinajane

ReadySteadyPop said:

christinajane said:

Bought the house in 2012 - lived in it for about 8/9 years. I wanted to keep it instead of selling it at the time because I thought it would make up for me not having a pension and obvs I would have rental income etc until I decided to sell it when i am close to retirement. 

This tenant  though had made me think am I better off selling it now and sticking that profit into investments. 

Am I right in saying this earns you about 20 quid a day? That would be an hours overtime for many people a day, is it worth the stress for that? I would caution against thinking about "profit", it would need a buyers valuation and a completed sale before you can actually count on a certain amount. I would sell it now as there is a strong chance of borrowing costs going up next year when Trump starts in with the tariff plan.

Well when you put it like that...haha

ReadySteadyPop

christinajane said:

ReadySteadyPop said:

christinajane said:

Bought the house in 2012 - lived in it for about 8/9 years. I wanted to keep it instead of selling it at the time because I thought it would make up for me not having a pension and obvs I would have rental income etc until I decided to sell it when i am close to retirement. 

This tenant  though had made me think am I better off selling it now and sticking that profit into investments. 

Am I right in saying this earns you about 20 quid a day? That would be an hours overtime for many people a day, is it worth the stress for that? I would caution against thinking about "profit", it would need a buyers valuation and a completed sale before you can actually count on a certain amount. I would sell it now as there is a strong chance of borrowing costs going up next year when Trump starts in with the tariff plan.

Well when you put it like that...haha

Don`t rely on a tenant for a pension, that isn`t going to end well, a pension needs to be stocks and shares/bonds maybe money market funds now that volatility is back, get a pension today and sell the flat, maybe the tenant will buy it (with help from mum?)