Deciding whether to rent out your home or sell

January 30, 2016 by Brendan O'Neill

Home owners

Most people have to sell their existing property before they can consider buying a new one, but there are some instances where it may be more practical to retain your current home. If you are moving away on a temporary basis, perhaps for work, you may want to keep your home to return to.

If you own your property outright and have sufficient income, you may not have to sell your existing home. In this case, you may want to consider it as a rental property, although you need to make sure there is sufficient demand in the area.

Deciding whether to sell or rent out the property may be based on current property prices. If property values are rising in the area, you may make a reasonable profit if you retain it and use it as a rental property. However, if property prices are falling, it may be advisable to sell up and move.

If you have a mortgage on the property, you will have to check with the lender before renting it out to a tenant. Some lenders won’t permit you to rent the property out, while others may require you to move to a mortgage designed specifically for the buy-to-let market. This may be more expensive and you may need a higher loan to value ratio before you receive permission from the lender. A mortgage adviser who has studied for a CeMAP qualification will be able to provide suitable advice.

There are many factors you have to consider before becoming a landlord and professional advice may be required.