Landlords

[littlepeanutbrittle76]

I've inherited a 2 bed property. Do I sell or rent it out?

Can anyone tell me the pros and cons of being a landlord please.

Many Thanks

Where is this property? Legislation varies across the UK.

Is it in an area with high demand? Is it in a touristy area - with possible holiday let potential? Do you live nearby?

How much is it worth? How much would you need to spend on it to make it viable to rent? How much can you get in a fixed term savings account? How much can you bung in an ISA or the pension if you sold it?

The property is in Wales. It's not worth a lot, about 70k as it stands. Will need to put a new kitchen in, it's just had a new bathroom. Needs kitchen flooring, stair flooring and one bed room carpeted. There's currently 2 properties to rent in my town on Rightmove they get nabbed quickly.

So you’d spend £10k? Do you have £10k?
How much approx is the monthly rent?
Who would the clientele be? Is it a house or flat?

The general consensus, especially for new prospective landlords, is don’t do it.
Sell it and relax.
If you got 70k you could put 20k straight in an ISA and another 20k next year. Pay off any debts, improve your own house.

Are you up for managing it or would you need an agent? You need to look at the updated ll obligations and bear in mind the costs you face regardless of whether it is tenanted or not. There may also be modifications you need to be aware of and costs to do so, before you even start to get any income.

Sounds like a small town. I wouldn’t want to take the real risk of getting into a feud or whatnot with an irate tenant.
What if they need to evict the local nutter or a family or pregnant woman?
Or the council rent it and house god knows who in there?

Is there not some crazy second homes tax in wales? Might make it totally unviable

rent it out - that'll provide a future income for you and your family

A lot of the advice against buying a rental is for those who would have the property mortgaged and find that they make little profit out of it. Because you have inherited the property, I assume it's mortgage free. I suggest you ask a local letting agent to take a look at the place and see what they say. They will know what needs to be done to make the place lettable in that area and what kind of rents you can expect. You don't have to sign up with them, but if you are renting out a place for the first time, it might make sense to go with an agent who knows the ropes. Agents take 15% commission plus VAT (at least that is what mine in Bristol charges).

100% rent it out but get insurance in case they move in pay the first month and never pay again

I would sell as it is. Don't spend any money on it.

We have just sold out BTL as it is too stressful now.

Assuming you are lower rate income tax payer you’ll have to pay 18% CGT (minus the £3k allowance). It might be worth finding out what the market is like and how quickly it’ll sell plus also read up on the new renters rights.

Sell it. Being a landlord is for the professionals, who can cover the costs of bad tenants, repairs and void periods as part of their business.