First things first, what’s the difference between letting and renting a property? There isn’t any.
These two words actually mean the same thing. The only difference is that letting is for the landlord while renting is for the tenant. As such, the landlord will be letting a property to a tenant while a tenant will be renting the property from the landlord.
Instead of selling, you might want to consider being a landlord and let your property. Doing so can provide you with income and a place to go back to. Besides, you can always sell it in the future provided that you lawfully finish your contract with the current tenant.
However, proceed with caution. Being a landlord is not about sitting on the sofa while waiting for the rent money. It can be a complex and time-consuming job if you decide to handle things yourself. Not only that, the legalities and financial obligations involved can be overwhelming especially if it’s your first time to let a property.
The following are the pros and cons of letting a property to help you decide if it’s worth giving a try.
Without a doubt, this is the reason why a lot of people are so interested in letting their properties. Provided that your tenants pay on time, you’ll have a consistent source of additional income. This should be enough to cover any outstanding mortgage you have, and since you’re not selling your property, there’s a chance that its value will go up.
And it gets even better if you already own the property upright (no outstanding mortgage). This means that the rent money will become straight profit minus applicable taxes and maintenance expenses.
If there’s one thing that will never change, that would have to be taxes. The good news is that there are a few tax deductions that you can enjoy as a landlord such as:
Letting your property is similar to owning and managing your own business. Making decisions on contracts, costs, and agreements terms with your tenants can be very rewarding. If things go well, you can even start your property letting business and become a big player in the market.
Aside from being a source of income, letting your property means that you can also use it for yourself. This is reassuring since the economy will not always be favourable. At the same time, it’s a good investment if you wait for the value of the property to go up before you decide to sell.
This is true especially if you decide to do it yourself. For starters, you have to think of ways to advertise your property. Then you need to talk to prospect tenants and sort out contracts if they decide to proceed. Finally, you have to deal with tenants calling you in the middle of the night for emergency repairs.
But don’t worry because you can count on letting agencies to do the work for you. They’ll take care of pretty much, everything for you. From finding suitable tenants, fixing damages in the property, to keeping you up to date with all the legalities involved in being a landlord.
Daniel Brewer’s letting service can take care of all of this for you.
As mentioned earlier, you need to always keep yourself updated with the latest property law and legislation affecting landlords. Otherwise, you might find yourself spending more time than you have to if things don’t go smoothly with your tenants. You might be spending more money as well so be cautious.
Living in a house for a long time can make anyone emotionally attached to it. If you decide to let other people rent your property, you may struggle to deal with wear and tear caused by tenants who seem not to care. As such, you have to learn to cut off any emotional ties you have with your home.
Finally ready to let your property? Great! Here are some pointers to help you get started.
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