Keeping house (rented) as an investment or sell?

[EmGee]

I rent out my house in UK (bought and lived in for a year before I married and left to live abroad). The first two tenants were long tenancies so, apart from general repairs/improvements/management fees/mortgage, I made some money. Fast forward to this year and it was empty for the first five months of the year - and has been costing a lot of money!!

It's never-ending (had to do some repairs, decorate, pay council tax and utility while it was empty etc). It has made me realise how lucky (spoilt!) I was to have reliable, long term tenants and I wish I hadn't frittered away the rental income as much as I did. (Lesson learned there at least.)

So now, it has just been re-let for a 6th month tenancy. However, I am debating whether I should sell it and invest the money (in what?) or just accept it's been a bad year and hope to get some more longer term tenancies (and be more sensible saving the income to pay for times when it doesn't let as quickly/need to pay for repairs etc).

FWIW, it's a lovely little house in a great location!

[springchickennolonger]

I think I'd keep it. If it's a good location, it'll probably rent well. There's also the possibility of cgt to be paid, depending on your circumstances, if you opt to sell.

Property is (allegedly) on the up again, so it would probably gain back the money you've spent on it over time.

Watching with interest, as I'm in a similar position myself.

[CharlesRyder]

Keep it! House prices are rocketing again. We are moving into tied accommodation in the South West and wouldn't dream of selling our South East house. If we did we probably would never be able to afford to buy again.

[allinthegameyo]

I would only sell a property if I really had to.
I have all the rental money go in a separate account, untouched unless it is needed for gas checks, maintenance etc.
If it's lovely and in a great location I wonder why it was empty for that long?
perhaps look more carefully at the advertising/agencies or whatever you use in future, that could have been the issue.

[EmGee]

I think the reason it was empty for so long was because it is semi-furnished and two different applicants wanted it completely empty ( for short term 6-month lets).

At the time I didn't want to empty it - once the furniture is gone, it's gone (was mine when I lived there) and won't be replaced. Sod's law, then someone next time would be saying 'Ah but I want a furnished place!'.

It also needed decorating downstairs so I think that may have put off a couple of prospective tenants.

Anyway, I will hold on to it and start stashing the rental income away for any future 'empty' periods.

[specialsubject]

my suggestion exactly. Rework your sums, make sure you allow for all the expenses, make sure you are 100% with the rules and accept that the furniture is gone.

if your current tenants want to stay after six months, look at redecorating with them there. If they leave, redecorate anyway!

I wouldn't provide furniture - most people don't want it and for those that do and don't want to buy new, there are loads of cheap second hand sources. (this is how my own house is furnished!!)

BTW if you do decide to sell - that is not a reason to end the tenancy. You would have to sell it to another landlord or someone who was prepared to wait until the six months were up.

but it doesn't sound like that is your plan.

[VivaLeBeaver]

Keep it. Unfurnished rents better than furnished so afterthese ttenants get rid of it.