Sell it or rent it?

by Readers Question

9:10 AM, 6th January 2021
About 2 weeks ago

Sell it or rent it?

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Sell it or rent it?

I have a 1970s 3 bed terraced house on a very popular estate in South Tyneside. I own the house without a mortgage and it has been rented for 6 years to two sets of excellent tenants, absolutely trouble-free.

My tenants have just informed me that, after 5 years of happy renting, they are moving on. Bad timing for me under the Covid regulations!

The idea of renting the property out again fills me with dread – too many scary stories of non-payers that can’t be evicted.

I have been enjoying the extra income, but I do realise that I’ve been lucky to have good tenants. I am retired, in my early 70s, and common sense tells me it’s time to sell up and enjoy spending the proceeds.

I would appreciate any advice or suggestions.

Alan


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Comments

DALE ROBERTS

11:29 AM, 6th January 2021
About 2 weeks ago

Sell.
The BTL industry is now so difficult and the returns so low I don't know why any investor continues to think it a good asset.
We sold one of our London apartments in 2019 and doubled the initial cost of the unit (not just our capital profit) in the past year by investing it in tech shares in the American market. That very volatile technocurrency, Bitcoin, has increased 5 fold in the last year. Capital appreciation on the unit was a measly GBP100 000 over the 10 years we bought it off plan and we got a 3% return in rental. Our rental experience could only be described as horrible with a last outstanding tenant debt to us of over GBP20 000.
My last London unit has stood empty since June last year, after a long term tenant vacated, and the viewings to rent have been sparse to non-existent. I would sell in a heartbeat if the cladding issue wasn't the cumbersome stranglehold it has become to prevent me doing so.
Sell and enjoy the liberty of being free of the tyranny of being a landlord.

Freda Blogs

11:30 AM, 6th January 2021
About 2 weeks ago

Hi Alan, I have just been through the same thought process myself on one of my properties, and I share your concern about defaulting tenants and eviction problems.

Current and possible new tax changes are a factor and only you can decide what's best for you in your circumstances.

That said, I decided to continue renting, doing it myself through OpenRent so I could meet and vet all tenants, and I also explored rent guarantee insurance which is available. I was pleasantly surprised by the number and quality of potential tenants, so am feeling more confident now.

Good luck in whatever you decide.

DALE ROBERTS

11:33 AM, 6th January 2021
About 2 weeks ago

Sell.
The BTL industry is now so difficult and the returns so low I don't know why any investor continues to think it a good asset.
We sold one of our London apartments in 2019 and doubled the initial cost of the unit (not just our capital profit) in the past year by investing it in tech shares in the American market. That very volatile technocurrency, Bitcoin, has increased 5 fold in the last year. Capital appreciation on the unit was a measly GBP100 000 over the 10 years we bought it off plan. Our rental experience could only be described as horrible with a last outstanding tenant debt to us of over GBP20 000.
My last London unit has stood empty since June last year, after a long term tenant vacated, and the viewings to rent have been sparse to non-existent. I would sell in a heartbeat if the cladding issue wasn't the cumbersome stranglehold it has become to prevent me doing so.
Sell and enjoy the liberty of being free of the tyranny of being a landlord.

Steve Masters

12:20 PM, 6th January 2021
About 2 weeks ago

As others have said, now might be a good time to sell and enjoy retirement hassle free. Do the maths on capital drawdown from sale proceeds against rental profit. You might be pleasantly surprised.

If you decide not to sell, I had some success during lockdown 1 with video tours and video interviews. Hand over to an agent for even less hassle. You might be pleasantly surprised.

And when you choose a new tenant:

TAKE A GOOD GUARANTOR

This is a must these days.

Barbara Grimshaw

13:39 PM, 6th January 2021
About 2 weeks ago

Reply to the comment left by April at 06/01/2021 - 09:40
At the age of 70 I'd sell it and enjoy your money in the years left you without the worry we have now.

RL

14:01 PM, 6th January 2021
About 2 weeks ago

I'd love to be in your predicament!
Sell it!
Nothing can match the freedom that this will bring. Spend it on whatever makes your happy!

LaLo

20:06 PM, 6th January 2021
About 2 weeks ago

If you have a good pension income then sell, if not- eerrrr!

AlanR

21:04 PM, 6th January 2021
About 2 weeks ago

Thanks everyone for your comments and advice.

Roy B

9:16 AM, 9th January 2021
About 2 weeks ago

Reply to the comment left by AlanR at 06/01/2021 - 21:04
Mid - 60's and sold /selling and in your situation I would sell. Just had a 9 month default on rent and unrentable house left needing 25k+ spent on it - and this was rented through an established estate/rental agent. The money from the sale will hopefully last out and have some left over for family after.

Judith Wordsworth

10:00 AM, 9th January 2021
About 2 weeks ago

Reply to the comment left by Paul Shears at 06/01/2021 - 10:57Sold Cheltenham flat to Cheltenham Borough Council. The council scheme via LHA for the horrendously trashed flat was Croydon /South London HA

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