If we decide to rent instead of sell, what do I need to know?

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Life’s just got more complicated, it looks like our house sale is about to fall through. We are moving abroad for work for 2/3 years, now we are wondering if we should rent the house out and hopefully ride out the predicted price fall in the property market.
We’ve never been landlords so I have no idea what’s involved, we would also be out of the country so would need it to be managed and would need to pay tax in the country we are moving too.
Any advice would be great, I feel like my heads exploding already 🤯😂

If you are planning to move back into it I would absolutely not rent it out with the changes to S21s you will very possibly be in a situation where you can’t move back into it and have no legal standing as long as the tenants are paying the rent.

The capital gains tax should not affect you greatly as it was your main residence for the majority of the time. The new tax rules will not affect you either as you have a very small mortgage. It is landlords who have large interest only mortgages - or the interest part of the mortgage - who will be affected as they can no longer offset that.
I would rent out on the proviso that
A You employ a professional, trustworthy estate agent to manage
B As it was your former home, you do not have expensive furniture, fixtures etc e.g. my kitchen was very expensive and I would be upset if the units were damaged as not sure I could replace them.
I wouldn't sell and then buy another rental as to me it would be a waste of money e.g. estate agent selling fees, legal fees, stamp duty on new property etc etc

If you move back and stay a while, it turns back into your primary residence and CGT does not apply. If your plans change and you don't return to it, you will get hammered with that.

All the other risks of being a landlord still apply and as people note, once section 21 goes they will only get worse. You need insurance and resilience to be able to cope with a wrecker/dealer/non payer. Not a big chance but a chance none the less.

you do need a good agent (they take a little finding) but the buck still stops with you.

and you will NOT get it back in the condition you left it, even with perfect tenants. Wear and tear!

@mencken
She won't get hammered at all.
CGT only applies on the amount the home went up in value whilst they were renting it out.
As it stands today, it's doubtful there would even be anything to pay in the next two/three years!

oops - you're absolutely right, my apologies. Those days are gone!

actually - hang on, there is a ratio thing for this, comparing time owned overall with time lived in. There was also private residence relief and lettings relief but I think the latter has gone.

so there may be chargeable gain and tax to pay.

@mencken PRR is now a rubbish 9 months!
Yes it works as a % but they take it from the time you started to rent it out. A few years renting against the majority of years where it was your main home, coupled with price drops..I'd be surprised if anything was due CG wise.

You are better owning a property in theses uncertain times rather than selling and g the money in the bank where you will get no interest and be over the government guarantee limit. Get in touch with a reputable letting agent and get their advice.