News
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Can’t sell so must let?
February 19th, 2010
The last year has seen a growing number of people finding that they cannot sell their Durham property at a price that they are happy with. If they need to move anyway, then they are left with two options: Option 1 is to leave the property empty while Option 2 is to let it out.
Option 1 does guarantee that the property would be immediately available if required for sale, but there are a variety of disadvantages.
Firstly and most obviously, the property is generating no rent. Whether you have a mortgage or are lucky enough to own it outright, you must be very wealthy indeed to be able to ignore that rental income. And even if you don’t need that rent yourself, you could be giving hundreds of pounds a month to charity.
Secondly, you will have to bear the cost of the council tax and utility bills, so instead of your property being an income-generating asset, it actually becomes a cost-generating liability.
Thirdly, you run the significant risk that without an occupier who uses the heating, does some basic garden maintenance and is there in case of flood etc the condition of your property may deteriorate, especially during the cold winter months.
Option 2 does carry the very modest disadvantage that possession cannot be established immediately. However, a tenancy agreement drawn up by a professional Durham letting agent can ensure that after an initial (typically six month) period, the tenancy will go onto a rolling (what we call periodic) basis meaning that two months notice can be given, should the market be seen to pick up and a selling opportunity arise.
Against that, your property will be generating an income, your tenant will be paying the council tax and utilities, and both tenant and managing agent will be keeping an eye on the property.
Can you really afford to be throwing that money away? If not, give us a ring on 0191 374 1234 and we will be delighted to visit your property and guide you through the process of letting it to top quality tenants.
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