For many homeowners and landlords, the question of ‘selling vs. renting’ is a huge one that requires a lot of thought. Selling can leave you with a huge lump sum of disposable cash however renting can provide a steady consistent form of revenue that could help secure your future.
There are a huge amount of factors that will impact on your final decision, including your existing financial situation, the condition of the local housing market and your future plans – whether you’re moving in with a partner, looking for a bigger property or relocating for a job.
See below some of the top reasons to consider renting out your home to tenants instead of selling it:
Pay Off Your Mortgage
If your rent is covering your mortgage expenses, then why not sit back and enjoy the benefits? Your mortgage can be paid off by your tenant comfortably, leaving you with a larger amount of equity should you choose to sell your property further down the line. Once your mortgage has been paid off you can sell the house and take your equity as a lump sum, or continue to rent and enjoy the steady stream of income.
Don’t Give Up On Your Dream Home
Is the reason you’re selling because you’re moving away? And is that move permanent? If you’re on a sabbatical or a secondment or taking a temporary contract in a different area, this way you don’t necessarily have to sell your home. Renting out your home during the time you’re away will allow you to cover expenses on the property, and keep your perfect home secured during this time, without having to lose it to a different buyer. Don’t forget, each time you buy or sell a property you’ll need to pay letting agents and legal fees – renting the house out instead can save on all those costs.
Fund Your Retirement
Renting out your house guarantees a steady second income for life, allowing you to save for your retirement and enjoy your later years with confidence and security. Future-proof your life by keeping a calculate (and profitable) investment.
Enjoy Tax Deductions
If you’re renting your home out, you can depreciate it for tax purposes. You can also deduct additional expenses like property taxes and repairs. This can make renting your home a cost-effective solution for landlords.
Play The Long Game
If you think the house prices in your area are going to rise, then it would be wise to rent the property out in the interim. If your area is up-and-coming then it’s good to hold onto the property now and reap the rewards in a few years time.
Keep Your Independence
If you’re moving to cohabit with a partner, then it’s worth considering keeping your house as a form of security. Keeping your property will not only ensure a steady form of income but also means that you have a base to move back into, should you need to. If you rent your house out on platforms like Airbnb you can avoid having to lease out your home for significant periods of time – meaning your home can be moved back into at short notice with ease. A local accommodation management company will be able to manage the property for you whilst needed.
Avoid Paying For Improvements
When you sell your home, things like old and tired fixtures and property imperfections will have a big impact on the final selling price, and any issues will allow buyers to knock your price down. You don’t need to worry about this with renting – your tenants are much more likely to overlook an outdated aesthetic and be forgiving about older features in a house that they only plan to live in temporarily or, if you’re in the short term rental market, stay in briefly.
Capitalise On Tourist Hotspots
Do you have a property that’s located in a vibrant city or place of interest? You could earn a high income from a short term rental on accommodation platforms like Airbnb. An Airbnb management company will help you to get the most from your property and attract huge volumes of tourists, as well as managing all of your guest communications and booking administration.