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When the time comes to move out of your current property, you have two options available to you: should you sell it, or should you rent it out?
Selling or letting your house is a big decision and not one you should make lightly. There are advantages and disadvantages to each, and the best option for you will depend largely on your circumstances.
You may also be wondering “How much can I rent my house for – especially on Airbnb?”. This blog answers all of these questions, and more, so you have a clear perspective on whether you should sell or let your house.
When is letting your house better than selling?
There are several reasons why letting your house may be a better option than selling – and the answer isn’t just about finances.
Firstly, letting your house is an excellent idea if you are only moving out for a short period of time. For example, someone moving into a new property because of a work placement is in an ideal position to let their existing house – because they may need to retain the option of moving back in at a later point.
You may also wish to let your house if you feel a strong emotional attachment to it. For example, perhaps you envisioned your parents moving there in their retirement, or you want to raise a family there yourself. Letting enables you to keep the house under your control, until it is needed at a later date.
It is worth letting your house (rather than selling it) if you are able to move into a new property without needing the cash from the sale of your existing house. In other words, if you are in a strong financial position and can afford to move out, then it is certainly worth letting your current property so it provides an additional source of income.
You should also let your house when you are confident property prices are going to rise, as this can be an excellent investment.
When is selling your house better than letting?
There are lots of circumstances when selling your house is preferable to letting.
Many people choose to sell their house out of necessity. If you are upsizing with your partner into a new property, for example, because you wish to raise a family there, then you may need the money from your existing house sale in order to afford your new house and lifestyle.
Furthermore, an advantage of selling your house is that any additional money you spend on a new home means when you sell, the gain is free of Capital Gains Tax.
Many people choose to sell their house (rather than rent it out) when they are permanently moving abroad. This is because selling your home could give you a nice lump sum to start your new life in another country, and you also won’t have to worry about your property’s condition from afar.
You may also wish to sell your property if you think the area will soon turn into an undesirable neighbourhood which drives house prices down (or at least subdues the rise in value of your property compared with other areas).
The commitment of becoming a landlord
When you are a landlord, there are lots of additional costs that you need to pay surrounding the upkeep of the property. There is also a significant time obligation – for example, you will typically need to stay compliant with ever-changing lettings legislation, unless you use a managing agent to take care of this for you.
Some of the other costs involved in being a landlord are:
- Landlord insurance
- Installation of smoke alarms
- Gas and electrical safety checks
- Fire safety assessments
You will be subject to increased stamp duty charges if you buy another property.
There can also be significant stress involved if your tenant proves to be problematic. You may be fending off complaints from the neighbours, for example, if you have an extremely loud tenant, or you may be spending increased sums of money fixing aspects of the property that your tenant has damaged.
How much can I rent my house for?
There are lots of free calculators online which allow you to work out how much you can rent your house for. The amount you can get from letting your property will depend on several factors, including:
- Property type
- Local demand
You can speak to local property experts on how each of these three factors vary. You can also complete research to discover how much similar properties in your area are being rented out for – because this will give you a guide price for renting yours out, too.
How much can I rent my house for on Airbnb?
As with above, research is key to discovering how much you can rent your house for on Airbnb. An excellent way to decide on a set number is by finding other similar-looking properties in your area on Airbnb, to see how much they are being rented for.
You may even choose to contact an Airbnb host and ask for a tour of their property, as a favour, if they are kind enough to grant this. Make sure you do this with properties which are similar to yours in size, facilities and area – because this will give you a good benchmark number to work from.
Sell your house quickly with WeBuyAnyHome
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You can trust us with a smooth and quick sale of your property.
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And click here so you can read our house selling checklist.