How to Decide Whether to Rent or Sell Your Property

Most people automatically sell their property when they move somewhere else, but the option to keep the property and rent it out also exists. This happens when the owner is unsure about how long they’ll be away for (say, a temporary move for employment purposes) or if they’ve acquired the house through probate, for example.

Deciding whether to rent or sell a property is usually a pretty good problem to have, but that doesn’t make the process of making the decision more straightforward. In this post, we’ll look at a few key considerations to keep in mind before making a decision. 

Step One: Check That Renting Is Possible

First thing’s first: if you have a mortgage, then you’ll need to check that you’re actually allowed to rent the property. Your mortgage will say something about renting out the property, and what that is will influence your next move. All going well, you can simply rent out the home with no strings attached, but most have clauses that you can only rent it out on a temporary basis, either for twelve months or if you’re moving away for work/other purposes. In any case, check the fine print of the mortgage before you get too deep into the idea of renting.

Figure Out the Financial Aspect 

The financial component won’t be the only factor that influences the decision, especially if there’s an emotional attachment to the property, but it’s worth knowing how much you stand to make through both selling and renting before making a decision. For selling, you can see how much you could potentially sell for by using an instant online property valuation – Ernest-Brooks International, for example, offers this service. For renting, you can take a look at similar properties for rent in the local area to get a rough sense of the market rate. 

The Stress Factor 

Both selling and renting a property can be straightforward, or they can be stressful. For example, if you have to conduct a bunch of repairs before listing the property in order to attract the highest offers, then it might not be the best idea if your schedule is already jam-packed. Similarly, renting may not be the smartest move if you don’t have time to manage tenants (and can’t afford to hire a property manager). There’s also the emotional aspect to consider; if you have a strong connection with the property, then selling might cause stress.

Long-Term Goals 

Finally, think about your long-term ambitions. Many people make property-related decisions based on their immediate circumstances, but it’s logical to think about their long-term goals. For example, while selling the property now and pocketing the cash might make sense for where you are right now, if you’re thinking of settling down in a few years, then it might make more sense to hold onto the property. On the other hand, if you know that there’s little chance that you’ll ever want to move into the home, then it’ll probably be better to sell and move on. 

See more home-related posts here and more finance posts here

Becky

Meet the award-nominated UK lifestyle blogger behind Spirited Puddle Jumper – a mum of three living in South East London! Becky shares the real ups and downs of family life, parenting tips, and lifestyle inspiration, proving that being a mum doesn’t mean you stop being fun or having other interests! Follow along for honest insights into UK family life and opinions on a whole range of topics, from travel and food, to beauty reviews, home and DIY, business and health and wellness.