One of my goals this year was to do my research on being a landlord. And I have. And I think I’ve scared myself. Reading some of the horror stories is enough to put anyone one off, let alone the legal stuff that goes with it. So I’d have to ask the question: Is being a landlord for me?
Part of my previous job was dealing with (constant) building issues in retail units and so I’m fully aware of how many problems occur on a daily basis, but I’ve left that life behind…and I’m not sure that I want it back. Obviously I’d only have one building to deal with, not 30, but even so, I’ll be living abroad, miles from the problem and from what I’ve seen of the letting agents around this area (two neighbours)….hmmm! So what to do?
Selling or renting is the only thing that we (I) change our minds on constantly. One minute I want to sell, the next rent out. Could we even sell in this market? There’s not an easy answer.
I’d love to hear your thoughts. What would you do in this situation?
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{ 17 comments… read them below or add one }
We are renters, really lovely, well behaved renters. Would you like to buy the house on our road which we love and rent to us? We want to rent for at least the next 12months…probably at least 24months realistically. And I don’t like our current landlords…but I like you!
) hehe
Amy x
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I should have said half the battle is the letting agents. I know of a good one (as we rented from them) in Bedford and Cheshunt – tho that probably doesn’t help you.
Amy x
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We were in that sellers vs renters flipflop situation with my first house about a year ago, and have been in the same position to a lesser extent since then (while we’ve been waiting to sell). Like you, for a good few years, we were convinced we’d rent but then, when it came to the crunch, we decided we wanted to sell — I didn’t think I could bear to get rid of my beloved house (so many memories!) but now I’ve moved out/on, I just want rid of it and the potential problems. I’ve got enough problems to worry about at our new house!
The decision to sell came from a combination of being still able to make a good “profit” on it now (because I bought it super cheap), hearing some really nightmare stories from friends/relative who rent out properties, and the fact we’re both running our own (separate) businesses already — if we were still employed in our almost-guaranteed, well paid jobs, we’d probably have gone for it but now we’re self-employed, we’re decided we have enough “risks” on our plate to deal with and the stress of becoming landlords would be a distraction. (I’m not blaming tenants for all the stress by any means – one friend has had decent tenants but endless problems with the property management company.)
The “nothing selling” issue is a big problem though – the house has been on the market for about nine months now – we’ve had interest/offers but nothing very serious. It’s a good job the mortgage is cheap & practically no interest – but there is money being thrown away on council tax (since I’m out of my exemption period) and insurance etc. We’re going to give it another six months on the market then think about renting again – although we will have to renovate it a bit to get full rent, which won’t be cheap (new kitchen, new bathroom, new carpets throughout and maybe a new boiler). I’m really hoping it doesn’t come to that.
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We are faced with the same issue (in 3 years) and have gone back and forth. But I’ve decided I want the capital out of it and dealing with problems from 2000 km away would be such a nuisance. We’d have to rely on someone else to do any work that needed doing in our absence and then there’s the odd chance that damage could be done that would really increase our costs. We’re going to sell up.
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Yeah, I know what you mean. People have suggested that to me too, but I’m not hard-hearted enough to deal with delinquent type people. I’m also considering keeping my house until the market picks up again here. I think we’re headed for another boom in the next 2 years where I live. I’ve just decided to be happy whichever way the wind (or the market) blows and play it by ear.
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I can’t stress this enough: don’t ever sell property. Rent it. Who knows if you’ll ever get a mortgage again? Get someone else to pay the mortgage; use an agent to deal with any issues and then you’ll have a nice chunk of retirement money when you sell it as an ex-pat and don’t pay any tax on the gain. Bricks and mortar are the only reliable long term investment. Most people just lost half their pension in the economic crisis. You simply can’t trust banks or investment houses any more.
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Wre moved abroard 14 years ago and kept our house in the UK. If you don’t need the money for your new life, definitely do not sell your house. You can find good letting agents and leave them to do all the work for you. We have had a couple of difficult tenants but the others have really made up fro them. We have been mucky to get long term renters too. I would also advise you not to put your rent too high and to try and get a family if possible.
Sue
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Would you hire a property manager? Someone reliable, who you trust to take good care of the issues that arise?
I can’t offer any advice (only support!) because I don’t have anything to put out there. We are currently renting (a necessary evil) but I think that we have been pretty good, responsible tenants.
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Being in America may be a little different, but I know that there are tenant nightmares everywhere. We still live in our own home. 2 years ago we bought a house very cheaply due to the market crash. The house was supposed to be for a mildly mentally challenged brother, which worked out fine for 18 months until he deicided he didn’t want anybody helping him. He trashed the place and skipped out (he was basically just paying the mortgage which is low). We were fortunate enough to rent to a young couple, (we have known the girl for 7 years). They came in and cleaned it all up, painted, steam cleaned the carpets, and everything. The place looks fantastic. They wanted a place to live for 4 years until their daughter goes to school (want to be in another district). Because of all the work they did, we did not charge them a deposit. We charge a low-medium rent for the area, taking into consideration the recesssion we are in. I cannot being a landlord where I have someone trashing the place and moving in and out. On the flipside, it is a great way to build long term equity, and unless your market in the UK is a whole lot better than ours, you may not make a lot if you were to sell right now.
I would recommend renting if you can find a decent renter or a reliable agent!
We will possibly want to rent our current house in a few years, which will be a higher price point which will either be easier or more difficult!
Good luck!
Bernice
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Well you’re several steps ahead of me. You have actually dealt with some of the issues a landlord will deal with. Myself? I have no such experience. I have been reading up on ‘how to be a landlord’, as well as ‘what to look for in a landlord’. Due to the market, we are so underwater that even if I sold, I would still have to pay. So if we ever get this other house, we still plan to rent out our current home. Once we get tenants (good ones I hope), then we can breathe a little bit financially.
So it really depends on your financial situation. Can you hang onto your home and handle both mortgages until the market gets better, so it can pay for itself, or more?
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I don’t think I would do it again unless I lived near my rental. Being a landlord remotely is very difficult in my opinion.
I also think location is key. If you’re property is in a desirable area, you’re much more likely to get your pick of the litter.
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Same boat here. I really, really do not want to be a landlord, even with a property management company doing the work, but it makes sense to give it a go renting. We’re in one of the few real estate markets that hasn’t been hit by recession (Vancouver, Canada) and because the housing prices here are set by offshore investors/buyers I fear we may never get back in if we sell.
We’re just trying to keep an open mind about it. If we find it is too much hassle and stress to own a place while we live abroad we will sell. You might want to consider that as well. Try out renting for a year or so and see how it goes.
And don’t read anymore bad renter stories! I read/heard a few and they really soured me. They are the exception, not the rule.
Good luck =)
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Easy – rent it out through a rental company for the long term income – that’s what owning property should be about, creating a passive income!
Tell the rental company what you want and don’t want, and let them do the rest – the only time you’ll hear from them (if abroad it’ll be by email) will be when a tenant leaves and they have found a new one, or unless some major damage is down.
Otherwise they’ll deal with all every day problems whilst you enjoy the small passive income and you mortgage being payed off whilst your sitting in the sun enjoying a nice cold pims!
I’ve got a number of friends in Oxford who own and rent out property through agents and they wouldn’t change it – sure they’ve had a few problem tenants over the years (mainly students) but mainly it’s been stress free and they’ve enjoyed a small passive income each month and someone else paying off the mortgage for them!
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Thank you for all your thoughtful and helpful comments. This is pehaps something we need to think long and hard about (some more). I’m not sure that there is a right or wrong way to do things, this is why the decision on the house is our biggest decision! Either way we do need to just decide and then stick to it…….I’m sure there will be more posts on this subject over the next few months
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Honestly, I have no advice or suggestions for you, but I can definitely see how it would be a very difficult decision!
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I can’t offer any advice about renting, except to say that it can be difficult. However, my instincts suggest that you should not sell your UK residence if you can avoid it. A house is always worth a house, whatever happens to the market.
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Hello Laura,
Considering you´re moving abroad, I would sell…if I could sell with a profit on today´s market. If not, to loose money selling, I´d rather risk renting.
From my experience here, renting is a lot about luck with tenants..because houses always bring issues, specially older ones.
Warm Hugs from Portugal xx
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