Before you decide to rent your empty property, you need to consider if it is worth it
Ask yourself these questions.
- How much is the property worth now?
- How much would it be worth in good condition?
- How much would it cost to renovate?
- How much rent could I ask?
You should get advice from local estate agents and a surveyor to get accurate answers. The figures should help you decide the best option.
- The housing market – Prices of property go up and down, and vary from one part of the country to another. One thing is certain though; you’ll earn nothing if your property is empty. Taking a chance on renting out your property is fine but, if you want to keep your options open find a short-term solution like a short tenancy and review things again in a year’s time.
- Securing your income – If you have borrowed money to pay for work on the property, you will probably be relying on rent to pay off the loan. So, you need to be sure of receiving your rent. If your property is empty for a while, you may not be able to repay your loan. There are some leasing packages with guaranteed rent – ask your local council for more details.
- Problems – Becoming a landlord is a practical and often profitable way of using your property. But it will involve you in a lot of work. Using a managing agent or leasing your property will probably reduce your income by a small amount, but it will also reduce the number of problems you have to deal with.
Compliance with Local Authority Planning and Building Consent restrictions
Having imaginative plans for redeveloping your property is all well and good, but if they do not comply with current legislation then they will not get planning approval or building-control consent and you will be have to think again.
Talk to your local authorities sooner rather than later and obtain advice and guidance so that you do not waste valuable time and money.