If you have been looking for quick house sales but have been unsuccessful, and are now thinking "I can't sell my house, should I rent it out," then you need to consider the following issues.
If you rent your property out because you have been unable to achieve a quick house sale, then you need to consider the real costs of becoming a landlord. The following is a list of costs you should consider when making a rental rather than a sale decision.
1) Mortgage; what happens when your interest rates change? Are you going to be able to cover an increased interest payment? Mortgage rates are at an all time low, with only one direction to go...up! Will the rent you receive cover the interest payments when they increase?
2) Rental gap periods; what are the results if it takes you a long time to get a renter? Who actually will pay your mortgage plus your rent for your present new property you've transferred into? What are the results between renters? Tenants can certainly vacate anytime and probable every 6 months. It might show that up to 4 months per year of mortgage payments are actually incapable to be protected by rental revenue.
3) Insurance; remember, you are still responsible for making your insurance payments, which is usually a few hundred pounds per year.
4) Property Management; do you desire to take care of the property yourself or pay another person to maintain this on your behalf? You must budget between 10%-20% of your rent to pay a management firm.
5) Maintenance; this can be costly. What happens if your boiler breaks or a ceiling falls in? It has to come out of your pocket right? Make sure you budget at least 10%-15% of your rent to cover this over the year.
6) Tenants go delinquent on rent; suppose you obtain new renters move in and these people stop paying rent on day 2? It could take you 6 months to evict them, so how do you make your expenses at the same time?
Thus renting your property out may seem like a speedy and simple solution if you're struggling to sell your property quickly in a sluggish market. However, since the factors above indicate, private property rental is not without its risks and positively does not promise a remedy.
So are there any other solutions out there that will help you to vacate your property now, ensure your mortgage payments and associated costs are covered, and enable you to move on? The answer is Yes. There are a small number of companies, mainly focused on the London property market, who will now agree to pay you rent at a corporate rental rate for your property. In fact the amount they pay you will cover all associated costs including your mortgage payments, insurance and property maintenance costs. The rental income you receive will be guaranteed. The whole process is completed through solicitors for your peace of mind.
Furthermore, these companies can guarantee to buy your property at a later stage, so you have the benefit of renting it out now to a stable company, without the tenant and cost issues, as well as a guaranteed sale at a later date.
If you rent your property out because you have been unable to achieve a quick house sale, then you need to consider the real costs of becoming a landlord. The following is a list of costs you should consider when making a rental rather than a sale decision.
1) Mortgage; what happens when your interest rates change? Are you going to be able to cover an increased interest payment? Mortgage rates are at an all time low, with only one direction to go...up! Will the rent you receive cover the interest payments when they increase?
2) Rental gap periods; what are the results if it takes you a long time to get a renter? Who actually will pay your mortgage plus your rent for your present new property you've transferred into? What are the results between renters? Tenants can certainly vacate anytime and probable every 6 months. It might show that up to 4 months per year of mortgage payments are actually incapable to be protected by rental revenue.
3) Insurance; remember, you are still responsible for making your insurance payments, which is usually a few hundred pounds per year.
4) Property Management; do you desire to take care of the property yourself or pay another person to maintain this on your behalf? You must budget between 10%-20% of your rent to pay a management firm.
5) Maintenance; this can be costly. What happens if your boiler breaks or a ceiling falls in? It has to come out of your pocket right? Make sure you budget at least 10%-15% of your rent to cover this over the year.
6) Tenants go delinquent on rent; suppose you obtain new renters move in and these people stop paying rent on day 2? It could take you 6 months to evict them, so how do you make your expenses at the same time?
Thus renting your property out may seem like a speedy and simple solution if you're struggling to sell your property quickly in a sluggish market. However, since the factors above indicate, private property rental is not without its risks and positively does not promise a remedy.
So are there any other solutions out there that will help you to vacate your property now, ensure your mortgage payments and associated costs are covered, and enable you to move on? The answer is Yes. There are a small number of companies, mainly focused on the London property market, who will now agree to pay you rent at a corporate rental rate for your property. In fact the amount they pay you will cover all associated costs including your mortgage payments, insurance and property maintenance costs. The rental income you receive will be guaranteed. The whole process is completed through solicitors for your peace of mind.
Furthermore, these companies can guarantee to buy your property at a later stage, so you have the benefit of renting it out now to a stable company, without the tenant and cost issues, as well as a guaranteed sale at a later date.
About the Author:
If you need help to pay your mortgage on your property to prevent repossession or help to sell your house quickly then visit the sellmyhousequicklyplease.co.uk website.
No comments:
Post a Comment