Should You Put the Family Home up for Rent?

As you look to move up the property ladder, sooner or later you will be faced with the tough decision as to whether or not to sell your home. Even small ‘starter homes’ hold many memories that you hold dear, and the same certainly rings true to the home you raised your family up in. Maybe you have thought about refurbishing your home with a property refurbishment company.

Instead of selling outright, many homeowners look to retain ownership whilst placing the property up for private rent, but could you bear to rent out the family home to complete strangers? And where does that leave you and your family?

Reasons for Moving Out

There are many reasons why you could decide that the time is right for you and your family to move house, with the main reasoning being the necessity for more room. Whilst a house could easily put a roof over two young children’s heads, as they grow the space that they demand becomes more and more.

Alternatively, the exact opposite could be true and you are looking to downsize now that the children have moved out and you are either living alone or with your partner. What was once an active household is now home to an awful lot of space that you know would be better used by another family.

To Sell or Rent?

This decision really does come down to what your financial standing is. If you can afford to rent out the family home and either buy or rent elsewhere, this is certainly an option that is worth exploring. In order for this to be worthwhile, the amount that you make on renting out your home should be greater than your outgoings in order to turn a profit, acting as extra income.

Of course, renting out your house privately isn’t for everyone, either because they cannot afford to be responsible for two properties or just simply don’t want to be burdened with the responsibility. In this case, selling the home is certainly the best option, although it does mean that once it is sold it is gone forever.

Keeping the Home in the Family

One major reason for families to retain ownership of the home, even if they aren’t actually living in the property, is to pass it on to children as they start their own families. In the period between moving out and passing it on, privately renting out the house can be the source of extra income that can be used to top up savings such as a retirement fund, or as a little extra finance to play with.

If you do have the intention of eventually passing the property on in the future, this means that you have to be careful with any tenancy agreement that you agree to. Most tenancies are renewed either in six-month or 12-month blocks – long enough to ensure security for the tenant, but short enough so as the landlord can decide on the future of the property.

Talk to Your Family

You are not the only one with an emotional connection to the property and it wouldn’t be right for the ultimate decision to come down to one person. Discuss the potential of moving out of the family home in order to make room for tenants, while ensuring that there is a clear plan in place for where you will be living in the meantime.

If your children are old enough to understand, discuss the potential of leaving the property for them. It might be the case that they have no intention of living in the home when they are older as they embark on their own life and career, which could potentially take them away from the local area.

Before making the decision to rent or sell the family home outright, make sure that you have taken all factors into consideration.

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