12 Reasons To Rent Out Your Property

NOT FOR SALE 12 Reasons To Rent Out Your Property

Reasons to rent out your property

When buying a new home, most people just sell their existing residence without even considering the possibility that it may be more beneficial for them to keep the property and rent it out. Here are 12 reasons why renting out your home, rather than selling it, could make good sense: • If you are moving away temporarily and plan to return to the property. • If you are buying a property with your partner, renting out one and selling the other could provide you with enough capital to buy your new home and earn rental income from the other property. • Your house isn't selling, but you need to move quickly. • You can afford to buy your new home without selling your current property and want to become a landlord as a long-term investment and benefit from the rental income it generates. • Monthly rental prices in London are at an all-time high with demand outstripping supply meaning that you can make good income from renting out property. • If you keep the property for an extended period, you stand to make a sizeable profit when you come to sell. • If you're relocating, you can retain a property in London.

• You can keep a property you have a personal attachment to, even if you can't or don't want to live in it yourself. • The rent will cover your mortgage costs. • You can provide a good home for tenants. • In most cases, the tenants are responsible for paying utility bills and council tax. • A good letting agent can make the rental process easier with expertise in the rules and regulations and can often provide management services. Reasons people are put off renting and the Hartswood solutions • Having to invest money in the property to prepare it for tenants and ensure you meet legal obligations. The Hartswood solution – Let Hartswood prepare the property for you and spread the cost of any work needed over the first year of the Tenancy. • Having to keep up with new regulations for rental properties. The Hartswood solution – At Hartswood we are members of ARLA Propertymark which means we meet higher industry standards than the law demands and strictly adhere to their regulations, We are also members of The Property Ombudsman, TDS and backed by a Client Money Protection (CMP) scheme which guarantees your money is always protected.

• Having to pay ongoing maintenance costs if you rent your home. The Hartswood solution – With Hartswood we ensure ongoing maintenance costs are manageable with our team of highly trained and experienced contractors looking after your property.

• Trusting the tenants to take care of your property

The Hartswood solution – With Hartswood you can be sure you will be getting the best quality tenants. But d on’t just take our word for it check out our google reviews.

• I’m worried about what will happen if the tenants stop paying rent

The Hartswood solution - With Hartswood your rent is protected up to £2,500pcm. You will also benefit from our legal & mediation cover up to £100,000 giving you complete peace of mind.

• Having to pay utility bills and council tax if the property is empty.

The Hartswood solution – With Hartswood vacant periods are kept to an absolute minimum with our managed properties being empty for only 4 weeks on average over a 5 year period.

Frequently asked questions

What are the tax implications of renting out my house?

As a landlord, you must normally pay income tax on any profit you receive from any rental properties you own. Put simply, your profit is the sum left once you've added together your rental income and deducted any expenses or allowances. What counts as rental income for landlords? Your income is primarily the rent you receive but also covers any other payments from tenants for services normally provided by a landlord. Cleaning of communal areas Utility bills - including hot water, heating, broadband and water Arranging repairs to the property If you charge any non-refundable deposits for your property these will also count as rental income, as will money that's kept over from a returnable deposit at the end of the tenancy. These include:

You are able to deduct expenses you incur from letting the property.

Some examples of allowable expenses you can claim are:

Water rates, council tax, gas and electricity Landlord insurance Costs of services, including the wages of gardeners and cleaners (as part of the rental agreement) Letting agents' fees Legal fees for lets of a year or less, or for renewing a lease of less than 50 years Accountant's fees Rents, ground rents and service charges Direct costs such as phone calls, stationery and advertising for new tenants

Any expenses should be incurred wholly and exclusively as a result of renting out your property.

Since April 2020, you've no longer been able to deduct any of your mortgage expenses from your rental income to reduce your tax bill. Instead, you now receive a tax-credit, based on 20% of your mortgage interest payments. You should always seek expert advice to discuss all the tax implications in detail.

How can I finance two properties?

Think carefully about your finances and how you will finance two properties simultaneously. If you decide to rent your home, you must speak to your mortgage lender. Some agreements allow you to let out your property on a normal residential mortgage if you relocate temporarily, intending to return. Otherwise, buy-to-let and let-to-buy mortgages are two options you may consider. Taking out a mortgage for a property you intend to rent out is known as a buy-to-let mortgage. They usually come with higher interest rates and are typically interest-only agreements. Another way to finance two properties is by taking out a let-to-buy mortgage. If you're planning to rent out your house, let-to-buy mortgages allow you access to the equity you hold in the property. You can use that equity to remortgage and put down a deposit on a new home. As with any house purchase, you must demonstrate that your income can cover your mortgage payments. You will also be responsible for covering repayments when the property is empty. Seek specialist mortgage advice to determine what you can afford, and discuss the pros and cons in detail.

Think carefully about your finances and how you will finance two properties simultaneously. If you decide to rent your home, you must speak to your mortgage lender.

Some agreements allow you to let out your property on a normal residential mortgage if you relocate temporarily, intending to return. Otherwise, buy-to-let and let-to-buy mortgages are two options you may consider. Taking out a mortgage for a property you intend to rent out is known as a buy-to-let mortgage. They are typically interest-only agreements. Another way to finance two properties is by taking out a let-to-buy mortgage. If you're planning to rent out your house, let-to-buy mortgages allow you access to the equity you hold in the property. You can use that equity to remortgage and put down a deposit on a new home. As with any house purchase, you must demonstrate that your income can cover your mortgage payments. You will also be responsible for covering repayments when the property is empty. You should always seek specialist mortgage advice to determine what you can afford and discuss the pros and cons in detail.

Contact our office today to speak to our specialist mortgage broker.

Finances sorted I now need a tenant ?

This is where Hartswood comes in.

We will fully prepare your property ready for tenant occupation.

These services include, but are not limited to:

Decorative touch ups & minor maintenance Garden tidy Full professional cleaning Window cleaning International Removal Services Gas safety certificate Electrical safety certificate Energy performance certificate Smoke alarms CO alarms Intruder alarm servicing Administering the transfer of utilities & related services Mail forwarding Key cutting Service charge payments Boiler & appliance servicing Inventory of condition Obtain an overseas tax exemption certificate (NRL)

Who will look after my home ?

At Hartswood we know how important it is to have continuity with property management and how an in depth knowledge of both you and your property is essential. Your property would be managed by Andrew Hodgson & Stella Agricole two highly experienced and dedicated property managers. Andrew is the sole owner of the business and along with Stella they have a combined property management experience of over 40 years. Your home will be inspected every 5 months and a report will be produced highlighting any required maintenance, commenting on the overall condition of the property and including full colour photos giving you complete peace of mind that your property is being looked after.

Click Here to view a sample property inspection report.

Are you thinking about letting out your property or need further advice,

Click Here to contact us today and receive an exclusive 25% discount on your management fees.