So, you have a property to sell, and it would be ideal for a first-time buyer?
Did you know that many first time buyers are struggling to get mortgage deals right now as lenders become more risk-averse and house prices boom? This, coupled with financial hardship for some first-time buyers means that your property could potentially work better for you as an investment, so why not consider renting out your property rather than selling it right now.
In this article, BM Property Agents looks at five reasons why letting your property might be a good option for you.
A Valuation Hasn’t Met Your Expectations
It might be that an estate agent has valued your property to sell and come up with a price that is reasonable but doesn’t quite match your expectations or perhaps your property is stuck on the market and just not selling.
With the market seeing a gradual slow down following a buoyant few months, and with those mortgage deals currently out of reach for first-time buyers, it could be a great time to become a landlord. You can rent out your property for 12 months, or a short tenancy of six months, sit tight and wait for the market to rise again.
Whether you choose to manage it yourself or instruct a lettings agency to do it for you, you could be making a return on your investment almost straight away.
After 12 months, you can get the property revalued to see whether or not it has gone up in price and make a decision to continue letting or to sell, based on that valuation.
Top Tip: The rental market is buoyant right now!
Considering Letting Your Property? Do Your Research
When it comes to property, you should always do your research. We pride ourselves on our thoroughness, but for you to make the right decision, you should do some research of your own.
If you think your property is ideal for a first-time buyer, check that there is a market for renters in your particular area of Southend.
For example, it might be that your property is within or close to the town centre and is ideal for young people who want to be near work and social activities.
Top Tip: There’s no such thing as too little information. Go online, read the property sections of your local or regional newspapers, and of course, ask BM Property Agents for expert advice.
Be Aware of Potential Issues
Renting out a property can be a rewarding business and can be the start of a whole portfolio of properties!
This is great but be aware that it takes a lot of hard work.
- There are rules and regulations that must be adhered to, and there are potential consequences of not following the legal guidelines.
- Make sure you can sever emotional ties to bricks and mortar.
- Consider if you able to manage the property yourself, or you should get a lettings agency on board to help.
Top Tip: Make sure you are fully aware of all the pros and cons of renting your property. Do your homework!
Return to Your Investment
We talk a lot about return on investment, but we also see a return to investment. Don’t forget, if you decide to let your property in Southend it is still yours, and you can choose to move back into it yourself at a later date.
Renting your property out for a year and then moving back into it yourself before you eventually sell is always an option. This is a return to investment.
Top Tip: You can stipulate the length of a shorthold tenancy in an agreement, to make sure it fits your requirements.
Crunch the Numbers
Whether you want to sell your property or you decide to let it, the decision may come down to basic maths. Put simply, do the figures add up? Can you cover your costs? Can you afford to rent out your property or do you need to sell to recoup your investment?
Top Tip: When you’ve done your research, seek professional advice from a lettings agent because there may be something you have missed, or just not thought about.
We have the local knowledge, experience and expertise to help you make the right decision on whether to let your property in Southend.
We can’t make the decision for you, but we can give you the necessary information to set you on the right path. Call our team on 01702 596027 or email barry@bmpropertyagents.co.uk for tailored advice on becoming a landlord in Southend.
