Sell Or Rent? What Are The Benefits Of Letting Your Home?

The current cost-of-living crisis and uncertainty over bank interest rates mean many potential sellers in Edinburgh have put the decision to move on the back burner.

But if you need more space for a growing family or you’re relocating to a new area, it’s not always possible to hold fire on putting your house on the market. So what option do you have when you can’t sell?

Become A Landlord in Edinburgh

Edinburgh is one of the world’s most desirable cities to live in, and demand for property of all kinds is high, both for sale and rent. The last Citylets quarterly report highlighted record rents in Scotland’s capital and homes being snapped up in a matter of days.

So if selling feels like too much of a risk in the current market, or you need to move quickly and can’t find a buyer, it’s worth considering becoming a landlord and offering your home for rent while you relocate.

Benefits Of Renting Your Edinburgh Property Out

Renting has many benefits and isn’t as difficult as you might think, especially if you use the services of a reputable letting agent to manage everything.

An agent will:

  • Advise on an achievable rent
  • Advertise your properly widely
  • Find and vet reputable, reliable tenants
  • Look after maintenance and repairs
  • Manage all your legal and safety requirements
  • Be on call 24/7 so you can relax

How To Prepare Your Property For Letting

Before advertising your home for rent, you may need to carry out a few upgrades and modifications to ensure it meets the required standard. All Edinburgh landlords must register with the local council, which costs £68, and the property must meet the Repairing Standard.

You may need to install improve the heating system to attract the best tenants and to meet future EPC requirements – a certification that shows the energy efficiency of your home – and you’ll need to have the safety of the electrics checked too.

If your tenant pays a deposit, you must secure it in one of three tenancy deposit schemes specified by Edinburgh City Council, and you must advise your tenant where it is registered.

However, if you choose to use a reputable letting agent, all of this is part of your management contract, so you don’t have to worry about getting it wrong.

Switch To A Buy-To-Let Mortgage

If you have outstanding borrowing on your home, most lenders will allow you to switch to a buy-to-let mortgage which allows you to rent it out. You’ll also need specialist landlord building insurance and you’ll have to declare any profits as earnings in an annual tax return.

You’ll also need to consider whether renting your home allows you to buy or rent another property when you factor in rising living costs and interest rates.

Clan Gordon has been looking after rental properties in Edinburgh for more than 15 years, and our professional property managers can offer expert advice on all issues surrounding letting a property. We can provide market insight into current demand and rental values to help you decide whether selling or renting is the right option for you - schedule a call now to find out more.

 

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