It’s not unusual for property owners to ask us whether it’s best to sell or to let.
That decision will of course depend on individual circumstances and market conditions or other factors
Considerations such as being in a part completed development or factors affecting the neighbourhood could make it sensible to postpone a sale supposing you can afford to hold on to the property and let it out in the meantime.
As integrated sales and letting agents we can look at it from both sides and advise on the prospects for both sale and let.
A property with an existing tenant can be an attractive proposition for a buyer looking for a proven investment property.Legal Lab
If you haven’t let a property before
you will have to take into account the need to comply with various regulations that apply to the private rented sector. This includes registering both as a Landlord with the Local Authority and the property itself. Its not an onerous task and can be completed online but you need to satisfy the test of being considered “fit and proper” and pay the registration cost, generally about £60.
Then there are the various safety regulations
from gas safety certificates to smoke and carbon monoxide detectors to electrical safety and having the water systems checked for “Legionnaires Disease”.
Depending on the condition and size of the property
upgrading the electrical systems to the required standard can involve a considerable outlay and these are all costs that you don’t incur on a sale where it’s more a case of “caveat emptor” or let the buyer beware….and very few buyers bother to get the electrical systems checked despite the fact that this is routinely highlighted in the survey or Home Report.
Both sales and lets require a current EPC or Energy Performance Certificate
This has to be provided free to the buyer or tenant. Energy efficiency is a ‘hot topic’ and with the ongoing attempts to tackle global warming there are incentives such as the Green Deal which aims to improve the energy efficiency. Further down the line in a few years it may become impossible to let some poorly performing properties that are below a certain grade. In some cases the cost is an additional charge on the energy bill so the person who benefits from cheaper more energy efficient and warmer living conditions pays by way of a supplement added to the bill.
It may be a small cost to pay for the benefit but a buyer will want to know and it’s a standard pre-purchase enquiry. Tenants on the other hand may be unaware unless they investigate or the information is volunteered.
Property Solutions and Choices
As private letting has become more prevalent in recent years a more extensive range of properties have become available. Partly due to the slowdown in market conditions for selling those that were unable to sell or not prepared to sell at a discount looked to the private rental market as a solution.
No longer restricted to the standard bedsit or student type accommodation you will now find properties across a whole range of properties, from flats to 4-5 bedroom detached and often with a garden to consider.
In this current era of low interest rates
Rents can actually be higher than the mortgages would be. However the attraction and benefits of flexibility and freedom of movement makes renting the best option for some, particularly if you are likely to move on in a few years due to your work or family considerations.