If you’ve cultivated your very own buy-to-let property portfolio to generate steady income through rent, as well as asset appreciation, congratulations. However, being a landlord isn’t always sunshine and rainbows.
There comes a time in every landlord’s career when they need to sell off at least one property within their portfolio.
If you’ve been in a state of turmoil mulling over this exact scenario, rest assured, you’re not alone. Below, we’ll discuss some of the most common reasons for selling tenanted properties – and how it’s possible without embarking on months of admin hassle.
When selling a buy-to-let just makes sense
- Have rising mortgage rates made it harder to turn a profit from a property? Or perhaps the home is dated and needing more maintenance? If the numbers no longer stack up, it could be time to sell up.
- If you’ve got tenant fatigue, or you’re fed up with void periods, repairs and compliance, selling up can be the best move for your sanity.
- You may be mindful that the local property market is on the verge of peaking, in which case it could be a good time to sell and release equity.
- Recent tax changes, such as the slashing of mortgage interest relief, have made being a buy-to-let landlord less appealing. Selling could free you up for a change of career.
Selling without the paperwork headache
In years gone by, the only way to sell a tenanted property was via the open market. You’d have to bide your time and wait for the ideal buyer. It’s said that the average sale time with an estate agent stands at around 175 days. That’s the best part of half a year waiting for someone to sign on the dotted line and give you your money.
If this doesn’t sound like the option for you, you may want to consider cash house buyers. Sites like Sold commit to wrapping up deals quickly, within a week even, compared to the long processes of traditional sale methods. That’s seven days from receiving a cash offer to completing the sale. Cash buyer services aren’t fussed about the condition of your property either, so you don’t have to spend money preparing the house for viewings.
Dealing with your tenants
One of the biggest issues to overcome when selling a property within your buy-to-let portfolio is the tenants. In some cases, you may have built up a strong friendship with your tenants, meaning it could be a hard decision to make.
Do you wait for their tenancy to end? Do you serve notice and risk void periods? These are all valid questions. The reality is that it is possible to sell a tenanted property. There are buyers and other potential landlords out there willing to take on a property with tenants already in situ. This could be the ideal win, since it keeps your tenants happy and secures you a guilt-free sale.
Ultimately, only you can answer if the time is right to shift one of your buy-to-let properties off the books. It could be a tired, old property that’s becoming too expensive to maintain, or you want to unlock equity quickly to reinvest in a bigger, more exciting property. Whichever the scenario, selling could be the fresh start you sorely need.
