While let to rent isn't a new concept, it's becoming a great deal less niche as an alternative owning and living option.
‘One of the biggest factors in this trend is the massive and rising cost of moving, and the difficulties that many owners are encountering in replacing their existing mortgage with a similar deal,’ said David Brooke Smith of Stacks Property Search.
He explained that there are lots of reasons and schools are one of the main drivers. ‘Families who want to live in a specific catchment area, or who want to be close by for a child's limited time at a particular school, are letting out their home and renting close to the school,’ he pointed out.
‘It's also a great way of trying out a new area without committing to it fully. So for those who are contemplating a move from town to country, vice versa, or from one part of the country to another, or wanting to try out a specific village that has caught their eye but about which they know nothing, it reduces the risk of buying in haste and repenting at leisure,’ he added.
Other scenarios include short term work contracts, taking time out, such as on a sabbatical and some even want to move, but can't bear the idea of selling their much loved property.
‘There are huge benefits to let to rent. Selling and buying is a big step both emotionally and financially so if there's ever any doubt that it's the correct long term decision, letting to rent makes a lot of sense,’ said Brooke Smith.
But he warned that while let to rent is often a win-win scenario, there are several issues that need careful consideration before making a decision, most importantly the figures. He pointed out that that big disadvantage is that the rental income will be taxable income.
‘You can offset costs related to the property you're letting, but you can't offset the actual cost of renting. So if you want an even playing field, the figure you have available for your rental may need to be less than the figure you can achieve for letting your property out,’ he explained.
‘Depending on where you're moving from and to, the figures could stack up very nicely. Letting in London, and renting in the country, should mean you're well placed financially. But going in the opposite direction will mean you have to be pragmatic about what you can afford,’ he added.
He also explained that availability can be a challenge in rural areas as rental homes are often in short supply and the choice can be further limited if landlords choose not to welcome children and or dogs.
Home owners will also need to get consent to let their property from their mortgage provider who may or may not insist on changing the mortgage to a buy to let deal. Those choosing rent to let will also need to put special landlord's insurance in place.
Also, renting is more restricting that owning a home. Home owners used to being able to do what they want to their properties may find it frustrating that they can't knock down walls, replace bathrooms, and make other structural changes.
The property being rented out also needs to be ready to let. ‘You may be used to a boiler that needs coercing into action, and an Aga that has a mind of its own, but tenants will expect everything to be in good working order. And of course you will have to take into consideration all safety regulations and legal guidelines,’ Brooke Smith explained.
‘Timing can be tricky. If you're looking at letting and renting on an Assured Shorthold Tenancy (AST) basis, you will need a combination of cunning and luck to get the dates of start and finish to line up nicely,’ he pointed out.
‘It's worth considering different letting options rather than assuming you will let on an AST. Depending on where you live, you may find that short term lets give you more flexibility and a better income,’ he added.
He also explained that as the holiday rental sector has been revolutionised by organisations such as Airbnb some might view this as an option but it means leaving your property furnished.
‘The benefit of an AST is that you'll simply move your own furniture from one property to the other. If you're renting to try you also need to pay attention to equivalent sale prices. You may find that what you are able to afford to rent will be unaffordable to buy,’ he concluded.
