Selling rental property? WWYD?

[pinkroselemonade]

My parents died young and I have a property that is let out. I did live in it briefly myself once.

I now live with DP and we have a baby together.

I am contemplating selling it. It has started to become a lot of hassle and I will be back at work soon.

However it feels a bit like throwing away what my parents left me. Plus there are a family living there at the moment.

What would you do, do you think? Can’t decide!

Why is it becoming a hassle? Can you rent it through an agent so they deal with things?

Have you got a management company who manage the property or do you do everything yourself?
I agree, they can be a hassle and if you feel you just don’t have the time for it then selling it is the right the for you. Especially having a little baby!! X

I wouldn’t sell it unless you need to release the money in it for something. It is a great investment/pension or even if you don’t really benefit you could use it for your child.
I think the main hassle is if the tenants change over a lot or if they are a nightmare. Do you manage it yourself or do you use an agent?

It is let through an agents

It’s a hassle because it feels lately as if it’s a never ending list of things to replace or mend. That’s no ones fault, it’s just how it is at the moment. So for example in the last few months the boiler broke, the garden gate needed replacing, the washing machine needed replacing, the tap was leaking.

Part of me just wants not to have it there stressing me out, but obviously the rental income is much more than I’d get in interest.

If you aren’t married to your DP and have a baby with him I would suggest it’s a good idea to have an asset that just you own

Yes I’m inclined to agree hopping although this will probably change in the future.

OTOH I really don’t want to be spending the little free time I have on maintaining a house

I'd suggest you keep it too, for all the reasons others have stated, especially as you aren't married.

I’d wait until the family move out and then sell.

I’d be inclined to keep hold of it tbh. It’s a security for you, plus a regular income. Selling it will be even more of a hassle plus you’ll be hit with capital gains tax.

Have a word with your agent and get them to take on absolutely everything they can and to contact you only when necessary. A good agent can really help take the stress away (although it will still be there sometimes, I know!) All the breaking/replacement/problems seem to come around all at the same time, don’t they?!

I don’t think they will blue. Rental prices have gone up quite a lot and there isn’t much on the market.

I am wondering about switching agents as mine aren’t always great to be honest. But that could cause another load of hassle.

I just really hate it. I hate it when my phone rings and I see it’s them!

OP If it’s let by an agent it should be taking up any of your time maintaining it. Replacing boilers and gates and washing machines should be things the agent sorts. All it should require from you is a “go ahead” response when they call you to ask permission to repair/replace. Why aren’t they doing all this?

shouldnt be taking up any of your tiem

Change agents to one who takes care of all this stuff. You need a pot of savings specifically allocated to maintenance of this house to make it feel more expected.

@pinkroselemonade

I don’t think they will blue. Rental prices have gone up quite a lot and there isn’t much on the market.

I am wondering about switching agents as mine aren’t always great to be honest. But that could cause another load of hassle.

I just really hate it. I hate it when my phone rings and I see it’s them!

I think you need to look at changing agents. Ours just lets us know that something needs attention and they arrange it with the taxes they use, and deduct the cost from the rent that month. The peace of mind is worth the £110 a month they cost (standard 10% where I am )

Not taxes-trades!

uhtred to give some examples ... the agents rang on a Saturday to say the boiler had broken. They arranged for the plumber to go out who confirmed it was broken and took £42 for the privilege of this.

The plumber then stated that it was ‘probably’ the fan in the boiler that had broken but couldn’t guarantee this. The fan would have cost £300 new. DP is very handy and managed to get hold of a fan second hand. However the plumber refused to fit it because it wasn’t brand new. DP found a plumber who would and it turned out it was not the fan. So we replaced the whole boiler (£1600.)

Then last year the freezer broke. I replaced it but the tenant wasn’t happy with the one I bought because it wasn’t as big as the original one. The letting agents were insistent I had to replace like for like but this was not correct.

Then there was all this fuss about a garden wall - there is a hedge dividing the garden and next doors dog kept coming in, so a wall was needed.

There’s more but they spring to mind. It’s as if the letting agents are a bit nervous of upsetting the tenants.

I'm a little sentimental so I would tend to hold onto something my parents gave me, especially if it was a source of income.

judge yes they do ... the problem is it feels like there is a never ending stream of tradesmen and they all cost a lot of money and I guess if I’m making minimal profit from it it feels a bit pointless!

I did socalled but it’s been a drain lately and now that pot has run dry.

The plumber then stated that it was ‘probably’ the fan in the boiler that had broken but couldn’t guarantee this. The fan would have cost £300 new. DP is very handy and managed to get hold of a fan second hand. However the plumber refused to fit it because it wasn’t brand new. DP found a plumber who would and it turned out it was not the fan. So we replaced the whole boiler (£1600.)

Aha! So it was you trying to save a few quid that created your own hassle! Bad enough You tried to put second hand parts in a boiler!! That aside- If you had just let the original plumber sort if he would have discovered himself it wasn’t the fan and told you it needed replaced. There was absolutely no for your DH to get involved and source a part and a second (dodgy) plumber. That was your own doing.

Then last year the freezer broke. I replaced it but the tenant wasn’t happy with the one I bought because it wasn’t as big as the original one. The letting agents were insistent I had to replace like for like but this was not correct.

Yes it should have been like for like. If a tenant moves in with a freezer of a particular size then that’s what they are agreeing to pay rent for. You can’t just decide they will pay the same rent for a smaller freezer. Again- that aside- why wasn’t the agent sorting the replacement freezer?

Then there was all this fuss about a garden wall - there is a hedge dividing the garden and next doors dog kept coming in, so a wall was needed.

Next door’s responsibility to contain their own dogs.

It’s as if the letting agents are a bit nervous of upsetting the tenants.

What planet are you on?? 😂 agents have no fear of tenants whatsoever.

uhtred I’m not sure how you’ve managed to extrapolate that

It was a pretty uncomfortable choice between £300 that might work or might not and £1600 that would definitely work. To be honest I would rather have just ordered the new boiler but DP was keen to see it the fan worked first.

The plumber wasn’t dodgy. I think the one the agents used was, to be honest, which is another reason I’m keen to get rid of the property.

The letting agents definitely seem quite nervy about upsetting the tenant. I’ve no idea why but that’s been the case certainly over the last year.

You are wrong about the freezer, by the way.

IMO, I’d keep the property for a long as possible.
We are landlords. We only have unfurnished properties because of the expense and aggravation of replacing white goods.
We do supply a cooker, but that’s all.

I know - I really wish I had known this! but I obviously can’t retrospectively change this.

I’m really disappointed that everyone hasn’t just said ‘oh yeah, sell it!’ which in a way is my answer!

Honestly, until you're married, keep it as an assest to fall back to.
Not sure how much you rely on the rent for income, but re build the savings pot.
I'd only look to sell the house if I needed to use it for my own house deposit or to release for kids etc.
You've been left an amazing investment opportunity and it would be very short sighted to get rid because of some short term pain. The house will need a certain level of maintenance just to make sure it stays in reasonable condition, like any house does. Unless new builds they are rarely maintenance free. If you can make peace with this concept you should look forward to the income this will generate over the next 20 plus years and will be great once you retire. Sounds ages away, but trust me, it comes round eventually x

Of course it does but that’s the point really.

At the moment it’s the only income I have and it’s drained thousands.

In a few months I’ll be working full time. I don’t want to be worrying about this breaking or that not working or needing to sort gates or fences or order washing machines or freezers or get pest control. Maybe that’s selfish but I just really don’t.

And because of all that there isn’t even much of a profit which makes it pointless and now seems a really good time to sell.

I’m partly playing devils advocate here but it’s just an absolute weight around my neck. I hate it.