Renting the house to go travelling

I’m stunned that your friend didn’t put all those things right before you came home. That’s so rude !!

This is incorrect. Very little has changed because it's the Ops own home, and there is still a mandatory ground to repossess if they want it back to live in. However this ground cannot be used within the first 12 months of a tenancy.

Would never do this in a million years nowadays for reasons listed in PP’s.

It's not anymore. It's really pretty difficult, mainly as no-one really knows how the new system is going to work.

There's also making tax digital soon if it's over a certain amount.

Moving back in is allowed, but it's under section 8, as section 21 will no longer exist. There's a longer timescale and more financial risk to the landlord.

It’s the costs you’ve got to weigh up.

You’ll need to put your personal possessions into storage so that will incur a cost for the year if you rent out unfurnished…
even if you rent furnished or AirBNB - there will be sentimental / personal belongings that you wouldn’t be able to leave in the property.

if you decide to Airbnb - then you’ll need someone who will manage the changeovers and be on hand to assist guests - given that you are travelling and presumably on different time zones you won’t always be contactable. This can be costly.

You also have the stress that if the tenants don’t pay - this will ruin your travelling experience… also if they refuse to leave at the end of the tenancy or damage your property.

all points to consider.

If you don’t need the money, I wouldn’t bother with renting it out. Just get a neighbour to check in and make sure everything is okay.

There are a variety of guardian type services that will put short-term tenants in to look after a property. I’ve seen a few advertising residential services with the changes to housing law coming in. Not sure you get as much money as from renting direct, but depends what is a priority for you.

You can definitely issue a notice to leave if you want to move back in or sell, however the risk is that the tenant doesn't leave. It is very costly to take them to court, and time consuming. Even if you win, the maximum you will get back is 60% of your costs.

I've just been through this to get a tenant out who was supposed to leave a year ago. He hadn't paid rent for months, and it cost nearly £20k in legal bills. Even then we mediated in preference to court for speed.

I don't know how Air BnB operates, but if you are going to rent it out, don't do it by a tenancy agreement unless your appetite for risk is huge.

If you want to move back into your own home then that doesn't count as no fault eviction.

Just get good landlord insurance and vet the tenants yourself and you will likely be fine.

Life is short, you should do it!

For holiday letting ( aka Air bnb) you need to meet the new fire risk regulations that came in a few years ago. So linked smoke alarms in every room, keyless exit as a minimum, it could mean fire doors or a sprinkler system depending on the property.

If you are in Central London you can only do short term rental for 90 days per year. You would need to pay someone to clean it and be on call for emergencies

Under the new Renters Reform act, landlords cannot evict during the first 12 months of a tenancy (unless for non payment of rent, etc), and then need to give 4 months notice to the tenant that they are evicting to move back in. The 4 months is only the starting point- if they decide not to move on at that 4 month point, then you'll need to spend however long taking them to court.

I suppose what it comes down to is if they decide to not move out, and to stop paying rent, can you afford to both cover your mortgage and rent somewhere else while the situation evolves? If not, then I wouldnt risk it.

You can, but it's very limited. You can't serve notice within the first year of the tenancy, and then have to give a four month notice. So the absolute minimum, assuming everything is done textbook, is 16months, beyond the timescale the OP is looking at. Then you have the added complication that even good tenants may not leave, simply because the rental market is so difficult it may be impossible for them to find somewhere to go - there are so many people chasing each listing that comes up. Then if you do secure the property you have to move in, as if you don't you can't re-let it, because the only grounds you can take back the property are to move in or sell - so the timings have to work, eg if you've taken a lease somewhere else as to bridge the gap on returning. It can very quickly wipe out the profit from the rental income. The new rules are designed to encourage landlords to see rentals as homes, not temporary places for people to live.

Would dd go travelling with you, or what are her plans?

You would in theory be able to get the house back from tenants as it is your home and you would be looking to move back in, but you are completely reliant on the tenants actually moving out when they should. It is also unlikely that you would be able to recover the costs of damage from the deposit.
We rented our house out a couple of times with mixed but overall positive results, other friends weren’t always so lucky.
I would think very carefully about renting to anyone who would be advised by the council to stay in the house until eviction, which unfortunately rules out families.

I believe you can still serve notice if you want to move back in or sell, however that doesn't mean they won't string it out through a lengthy and costly eviction process.

I previously rented my flat out for 1-2 years, twice, when working abroad and found it very stressful, even with an agent, and neither set of tenants treated the property well. If I was ever to do it again, especially with the new bill, I would do AirBnB or similar. Sad to say that as I appreciate the social necessities of long term renting but I imagine a lot of people would feel this way given the uncertainties around reclaiming your own home.

What about renting to students? Could someone do that as a fixed term September to June contract? I'm just wondering - I don't know!

In any situation, there's always a risk of bad tenants and having to go through the court process. However thats not your main concern here - what has changed is that you can't rent out your house to tenants for a time limited period (while travelling) and then take it back from them when you're ready to move home. If you want to rent to tenants, you have to be prepared to rent it indefinitely. The choice on when that tenancy ends is the tenants, it's no longer yours. So the only option left for you is to do holiday lets. What you are allowed to do for that will often depend on local restrictions so it's worth checking out what your local authority allows to see whether it's financially viable for you.

Mind you I gave this "don't do it" advice to someone in real life and they went ahead anyway and have done very well.

If you really want security, get proper housesitters and even then it can go wrong. There is no chance I'd rent out my own house in the current regulatory environment unless I knew the tenants very, very well and trusted them to leave.

The other thing to think about is Council Tax if it's unoccupied, as there's now often extra charges.

Do you have a mortgage? If so, you would need permission to rent it from your lender