Can You Rent Out a Shared Ownership Property? Here's What You Need to Know
Updated: Sep 17
What is Shared Ownership?
Shared ownership is a popular scheme that allows you to buy a portion of a property and pay rent on the rest. It's a great way for first-time buyers to get on the property ladder, but what happens if you want to rent out your share?
Can You Rent Out Your Shared Ownership Property?
The short answer is yes, you can rent out your shared ownership property. However, there are some restrictions and guidelines you need to follow.
Understanding Your Shared Ownership Agreement
Before you rent out your shared ownership property, you need to understand your agreement with the housing association or developer. Some agreements may have specific rules on renting out your share, such as a minimum occupancy period or restrictions on who you can rent to.
How to Rent Out Your Shared Ownership Property
If your agreement allows you to rent out your shared ownership property, the next step is to find a tenant. You can either do this yourself or use a letting agent.
Pros and Cons of Renting Out Your Shared Ownership Property
Renting out your shared ownership property can be a great way to generate extra income, but it's not without its drawbacks. Some of the pros and cons include:
Additional income stream
Flexibility to move out of the property and keep it as an investment
Potential to increase the value of your share
Restrictions and guidelines to follow
Potential for conflicts with the housing association or developer
Difficulties in finding suitable tenants
What to Consider Before Renting Out Your Shared Ownership Property
Before you become a landlord, you need to consider a few things, such as:
Your mortgage lender's permission
The costs involved in renting out your property
The legal responsibilities and obligations of a landlord
Renting out your shared ownership property is possible, but it's important to understand the rules and guidelines before you do so. If you're considering becoming a landlord, make sure you do your research and seek professional advice.
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