In today’s market, renting investment property is one of the best options for long-term investments and maximizing your profit related to the subject. Alongside being a great value holder, it is certain that this type of investment is among the most secure ways to invest money. However, it is hard to determine whether to rent or sell your investment property is right at the given moment, which solely depends on the current situation, personal needs, and preferences. To help you decide should you rent or sell your investment property, check out the following text, where we’ll explore what would be the best option at the given moment.
Renting Your Investment Property
Is it possible to rent out your home or investment property? In theory, yes, but a couple of factors may influence this possibility; the most important one is whether or not you have a mortgage on your home. In that case, you may need permission from the lender. For instance, if you want to rent out your property for a certain time period before you move back in, your lender might agree and let you rent through your current mortgage deal, which is known as “consent to let“-it will usually allow you to rent that property for up to 12 months. On the other hand, if you plan to rent out the property for a longer period, your lender will probably ask you to move on to a buy-or-let mortgage with them or with a new lender.
Reasons For Renting Out Your Home
So, when should you consider renting out your home? There are many situations when renting out your home is a much better option than selling it. If you aren’t sure what are the main reasons and the best time for renting out your home, check out our list below.
- When you’re buying a new property by yourself or with your partner and want to keep the old property as an investment. In this case, we highly advise renting out your home as soon as possible.
- If you are moving out temporarily, especially for longer periods of time.
- You decided to sell your property, and it isn’t selling, or the offered price is too low for your standards, requiring a quick action in order to avoid losing value.
- You aren’t really sure if you’ll manage in the new environment and want to test yourself while keeping your old home in case things don’t go according to plan.
- If you want to find yourself in real estate, you can use your old home as your first rental property and build a property portfolio.