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!

rainbows that’s exactly what it is, a mental cost it you like. I’ll be having a lovely weekend one minute then fretting and worrying about an oven or boiler or fence the next.

You don't sound cut out to be a landlord. You're not married so I'd make sure you go back to work FT and protect your earning potential and pension.

Well, some of this stuff - once it's fixed, it shouldn't be an issue again any time soon? Maybe just get a different agent that will sort things on your behalf without so much fuss/faff.

syrian thanks; I’m not actually asking for life tips here, and if you read my posts (not hard on a two page thread) I’ve said more then once I’m going back to work soon.

I obviously hate inconveniencing the tenant but sometimes it’s unavoidable. And I am worried that if someone else breaks I just don’t have the funds to replace it.

I’ll go against the grain here and say you should get rid of it.

It sounds like it’s making you miserable, and the emotional attachment to it isn’t all that strong.

Ask yourself- “if this wasn’t my parents’ house, what would I do?”

I’m sure your parents wouldn’t have wanted you to be miserable and wanted the house to be something that improved your life, not stressed you out.

I would caveat that by saying that you’re not married, so please keep any sales proceeds ring-fenced or fully separated in case you and your boyfriend split in future.

Oh, it wasn’t my parents house, sorry. I was just explaining how I came to get it so I didn’t get flamed! I’ve no sentimental attachment, it’s just that I recognise it’s a good investment. At the same time, it’s spoiling the good life I have now a bit.

I agree with at least thinking about changing agents. But rental properties will always need something. But agents should be arranging the work. I agree with selling being the last option unless you want the money for a property to live in yourself. But then theres the question of joint ownership.

Eventually we probably will sell it and take on a joint mortgage, which is another reason to possibly sell it as we both have properties to sell.

Oh sorry, I misread and thought the house itself was an inheritance.

Is it completely mortgage-free?

Are you renting or do you own the home you’re living in now? What’s the tangible benefit of having a lump sum?

I’m still very much leaning of the side of selling it. Being an accidental landlord of one property isn’t any fun, and typically isn’t all that lucrative either.

It is mortgage free. I am living with DP at the moment and his house has a mortgage on it. I will be put on the mortgage but I am not at work yet.

I'd keep it and let it unfurnished. I appreciate that doesn't help you with your current tenants but property is always a good investment, especially if you have no mortgage.

I know you said you’re not looking for broader life/relationship advice but it could be worth starting a second thread in the Legal or Finance fora about the best way to do this so that you’re fully protected.

My two cents would be to keep the house until you’re back at work, so you have an income, then look at selling.

If the sale leaves you with a good lump sum, you might want to get advice in Finance on how to invest it.

I would suggest getting rid of the agent, and managing it yourself. At the moment you are doing all the work, but paying the agent a percentage each month. If your tenant leaves, you can use an agent to find a new tenant, do the checks, etc.

I have both been a lettings agent in the distant past, and a landlord. For a small amount of extra effort, you’ll have more money and less stress.

@VodselForDinner

I know you said you’re not looking for broader life/relationship advice but it could be worth starting a second thread in the Legal or Finance fora about the best way to do this so that you’re fully protected.

My two cents would be to keep the house until you’re back at work, so you have an income, then look at selling.

If the sale leaves you with a good lump sum, you might want to get advice in Finance on how to invest it.

I didn’t intend it to sound snippy advice it always welcome but I do feel I know what I am doing. I’m fairly sure the house will be sold, but it’s whether to do it now or not. I’m back at work in September so it isn’t as if it’s a while off.

That’s possibly a good idea woods but it feels a bit vulnerable to be honest, with the legal ramifications if we did need to evict (hopefully not!)

An alternative is to gift the appliances to the tenants on the understanding that they are responsible for mending or replacing them if they go wrong.
We did that with a washing and dishwashing machine in the last house we bought

At the moment the freezer belongs to the tenant - I am under no obligation to provide like for like, only to provide a freezer. So when the tenant said that was too small she got her own and obviously this belongs to her. I only recently replaced the washing machine so hopefully that won’t break! There aren’t any other white goods.

You can “sell” the appliances to the tenant for £1 and buy them back after so they are responsible for the maintenance.

If it’s your only property keep it. If it becomes a second property be aware of CGT if you choose to sell. I would always say a woman should own her own property and if it’s outright, that’s luckier than most unmarried women in the country.

Yeah ... I don’t actually consider myself particularly lucky that my parents are dead.

I do have a second property but that’s part owned with my brother.

It isn’t the white goods, though. As I’ve said I understand things break and the white goods are fairly easy to sort, if costly. It’s the fact it’s a near constant worry.

I would change agents to one that did absolutely everything. Get references/reviews and, after the brief hassle of the change, it should become something that recedes I to the background of your life. Even if the rent doesn’t make a massive income (or even just pays for itself), the house value is constantly appreciating far more than any other savings could generate.

I had a house that we lived in and then when we moved I rented it out as a holiday let through agents. Like you I got ground down with the mental load of having to make sure it was always in good condition and replace broken things. Even if the agency bought the stuff I had to agree to it. We sold the house last year and I feel so much happier not having it any more even though it was a lovely house and held good memories for us. I guess your problem is that you have long term tenants and it would likely be difficult to give them notice and have them move out.

Thanks. I really do appreciate these thoughts.

As someone who has a rental property that they'd sell in a heartbeat if they could, I'd say sell it. Have a look at the MoneySavingExpert Buying and Renting board, there are a lot of landlords on there with experience who can provide some perspective too .

The rental income might be more than any other investment return, but from the sounds of it I bet the rental profit isn't.

You might be able to sell to another landlord with tenants in situ so you're not disrupting them. Maybe ask your agent if they could help with that.

You'll still have the cash from the sale which would be your inheritance / safety net, so you'd still have that link to your parents and you can keep that in mind with anything you use the money for in future (eg paying off your mortgage, your parents will have helped give you that security)