Keeping letting out property or ISAs...

[SnailandWhal]

Could I ask some advice as not sure if my current tenants are colouring my thoughts too much.

So I let out one property and our current tenants are unreliable - poor communication, rent late or short (they do always send the money but I need to chase).

I'm debating selling the property and putting that money into ISAs or would you keep thr property and get new tenants?

The rent I charge is below market rate as I've never looked at this as a business/more as a future pension. But they are taking the mick.

Beforehand we've always had great tenants but every month I'm uneasy when the rent is due.

I can't decide if we should go through a letting agency and that would remove the stress/get new tenants or sell and use that money to put into ISAs or another investment opportunity...

So what would you do? Any thoughts greatly appreciated!

I think your question is less about ISAs and more about property vs investments.

You mention that you are looking as your property as a future pension. On that basis you need your property to increase in equity comparable to the investment market.

Benefits of investing is that well diversified funds should perform comparable to property, without the complexity of landlord duties and costs. They can also outperform. I’m biased here and I have a preference for investing vs property. Mainly because I don’t know enough about buying in the right areas to maximise my potential outcomes.

if you go for investing then understanding the best tax wrapper to put that into is key. Pensions are most tax efficient, especially if in higher income tax bracket. Only if I’d maxed them out would I look to ISAs.

I’d try to hold onto the property but consider using a letting agency and getting new tenants in

Hello thank you for this - how do you decide what is the best/would gain maximum benefit? Do you have a financial advisor?

I feel like I don't know enough to know what is a wise investment..

If you want to action a section 21 you need to do it immediately before RRB comes into place. It might take you 6 months to get the tenants out. Also when they pay their rent late or short what do you say to them? Are you too nice so they think you don't mind? You should give them a warning after the first occasion that it is not acceptable and you are considering selling the house.