What to do with BTL: sell but need income?

[Beakyok]

I’m in the fortunate position that I still own the house I bought when single, foot loose and fancy free. For the past 7 years it has been rented out but for the last two years tenants and managing it has become a big headache - especially as I live half an hour away with 2 young children. It is currently empty and for the first time ever, I’m wondering if I should sell it. However -

I’ve always thought of it as my pension fund or emergency fund. I like knowing that once the mortgage is paid off, it will provide a small income. Plus the equity in the house continues to grow and part of me thinks that if I need money in the future, I could remortgage.

I have a 40k mortgage left on it and it’s current value is about £160k. The rent is £650 a month. If I sold it, after expenses etc I reckon I would have £100k.

My issue is, what could I do with that money that will provide a good return and even continue to grow?

Well as stocks and shares have gone up more than property , that might be an idea. You need financial advice

Figure out your rate of return on the money if you were to leave it in the house, then see if that's worth the hours you put in.

I would sell. Tenants can now move in and pay nothing after the first month, and with the ever extending eviction ban and court backlog you are looking at two years or more of providing free housing.

even when/if normality returns, section 21 will go and it will be almost impossible to evict. Get out while you can!

I would keep it. I did similar when my children were small, and it was difficult, but I think you have got to think of it as a part time job. Property prices are unlikely to drop in the long term.

If the management of it is proving too much at the moment you could always get an agency to manage the letting for a couple of years. This will obviously eat into the rental income, but reduce the headache of managing it. Now would be a good time to switch to an agent if you need to find a new tenant?

Get an agency to manage it. You will lose some income but you can claim the expense against tax. Dont sell it if you can possibly help it.

Keep it. Get an agent to manage it.
They will take something like 10-12% of the rent as a fee. But will do all the day to day stuff for that.

Definitely see a decent, qualified financial planner.

Diversified Etfs can give you a decent return & are much easier than being a landlord. Definitely get a good agent for the property otherwise. A bad agent is worse than a crappy tenant, tho...

Get a good agent who will sort out issues. It will cut into profits but it's tax deductible and you could always do it yourself again when the children are older. Depends what other investments you have but I doubt house prices are on a long term downward spiral.

Don’t forget you will pay CGT

Small children won’t stay small long (sadly) if you need an agent for 4-5 years fine. I imagine there will be a time you’d regret selling.