Property Investment: Impact of Having A Child

Whatever the type of investments you have, they are always in some form impacted by your family life. Having a child, or having more children, is a substantial impact on family life and therefore finances.

Consideration needs to be made for childcare, living arrangements and when it comes to properties, values, property letting fees and locations need to be looked at.

Below are some of the potential ways your property investments can be impacted by a growing family.

Selling Your Property

Rent can generate a healthy stable income that is used to supplement your 9-5 salary.

However your rental profit you receive each month will only be a small % of the property value.

Having a child may create a requirement for you to need a lump sum of cash, possibly to offset a period of not working for either parent.

In addition there are the extra costs to account for nursery fees, more food, furniture and baby clothes!

Selling your property could offer you the opportunity to cash in on your investment and provide security against a new situation in your family.


When having a child, a host of new factors come into play when deciding where to live.

Potentially you’re no longer looking at living close to social life hubs. Instead the new factors that come into play are schooling & air quality.

With this in mind, this may result in you deciding to move to a more family friendly location, where properties may be more expensive to buy. Again this may push you to sell your investment property.

Getting a Property Manager or Letting Agent (and Property Letting Fees!)

You may have been quite comfortable running any rental properties yourself over the last few years. Collecting rent, fixing issues and keeping up to date with legal work may have become part of your routine.

However with the birth of a child, no doubt a larger proportion of your free time will be needed to help your family.

Therefore unless your rental income outweighs your 9-5, your 9-5 is likely to take precedent.

If this is the case, a property manager or letting agent will be able to support the running of your property, taking care of most of the landlord duties.

Of course there will be property letting fees your agent will charge. These can be a fixed one of fee or a proportion of your rental income.

In the UK landlords can compare property letting fees across agents in specific areas by using Rent Round.

Rent Round is a UK letting agent comparison site which enables landlords to search local agents and analyse their ratings, services offered & regulatory bodies they’re associated with.


A few of the options above indicate that a lump sum can be obtained by selling your property.

An alternative is remortgaging and taking out a certain cash amount out of your property.

Any amount taken out, can then be added to your mortgage, so you can expect your repayments and interest charges to be higher.

To avoid paying higher monthly repayments, increasing the duration of your mortgage can keep monthly repayments stable, although in the long run the amount you pay back in interest will be higher.

Moving Into Your Rental Property

Some savvy landlords choose to live in a smaller property, while their larger investment is placed on rent, generating a healthy income.

However with a new family member, space may be an issue.

Therefore moving out of the smaller property and placing that on rent, while moving into the larger property previously on rent, is an option to support your family.

Of course this will likely decrease the monthly rental income you receive, but at least being cramped won’t be an issue.

Becoming A Landlord

As alluded to above, schooling and air quality are more important factors when raising a family. However these types of areas may be expensive, with the sale of a current property not enough to cover the costs of moving into such areas.

An option instead of buying in the more friendly areas, is you can rent.

Rent although costing more per month, wouldn’t require a substantial lump sum deposit.

This would then free up your existing property to be placed on rent, offsetting some of the rental costs.

Again, depending on your situation, a letting agent may be a suitable option to help combat some of the workload of managing your rental property.

Whatever the impact having a child has on your property investments, there are solutions available. If getting a letting agent or property manager is one option you’d like to look into, then Rent Round can help compare property letting fees.

About the author

Raj Dosanjh is a UK based entrepreneur, founding various businesses including, a martial arts school and a banking consultancy

*This is a collaborative post*

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