ducktastic

We are seriously considering renting our house out in the uk rather than selling it, has anyone done this and is it a nightmare?

cheeky_monkey

yeah im still renting my house..yeah can be a pain in the bum..but at least im geeting something out of it

ducktastic

That is what we thought, negatives I can think of are paying management fees, having to decorate when we eventually want to sell, and not having the equity from the sale to buy a house in Vancouver.
The positives are it means we can go to Vancouver in 6 weeks as planned....

ireland2canada

It's not a nightmare if you organise it as best you can and appoint a property manager you can trust to manage it for you. I did this, and overall it has worked out for me. There have been periods of stress though, when the first tenant left and the property was empty, when the current tenants did not pay their rent on time. If you have an emotional attachment to your house then it is also hard to let it go.

It all adds up and I would give it a lot of thought before you decide on renting. Whatever goes on with your tenants, and whatever goes on with your life in Canada, you are responsible for that mortgage. It is like being pulled in two different directions. You also have a responsibility to your tenants, if the central heating collapses do you have the funds to get it fixed for them? If you get tenants who are moving in with nothing, are you prepared to buy them a bed, a freezer? Are you going to remember to have the boiler serviced, the gutters cleaned, who is going to maintain the garden? Realise that if you rent the property with appliances, and something breaks down, then you as the landlord have the responsibility of fixing or replacing the item. This can be hard when you are earning dollars and feeling screwed by the exchange rate.

There is also the financial administration that goes with renting. You will have to complete a UK tax return and tell them all about the property, be meticulous about keeping your accounts in order. You will also have to declare the property on your Canadian tax return. There are tax benefits and pitfalls with renting a house out while you are abroad. Then there are the issues of Capital Gains, declaring a primary residence and so on, read all you can about this so you know where you stand.

It doesn't have to be a nightmare if you cover all the bases you can, but be warned that it is a big responsibility and not to be taken lightly.

ducktastic

Thanks for that post, much appreciated...it is all the discussions we have been having over the last few weeks, we wouldn't go into it lightly, but I can see that we need to do a heck of a lot more research. We are financially okish and could afford the maintenance of the house should it need it. We would have to put it with a management company, and some friends use a good one.

I have always had a strong emotional attachment with the house, however as it is npw a barrier between leaving and starting new life in Canada it has become less and less.

Anyhow cheers for the advice

ireland2canada

One thing I left out (which you may know already). Get the property valued before you leave for Canada. That way, you are only liable for Candian Capital Gains on any increase in value after you have left.

mabozar

We are renting not that bad want to sell it now tho but the market is shocking. We want to buy in Oz now seen a lovely place.

Carol