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Time to cash in your rental portfolio?

02 August 2022 315 Views
Time to cash in your rental portfolio?

As landlords continue to exit the market, there seems to be no easy solution for selling.

Owning a buy-to-let portfolio can be a very profitable investment vehicle, but one of the biggest downsides is not being able to easily dispose of properties when the time comes to sell.

Even if you have a well-maintained and well-performing rental property with good tenants in situ and you just want to release equity to boost your retirement savings, it can be challenging to sell on the open market.

Buy to let is not as profitable as it once was, especially with the extra legislation and consequential increased costs of running and maintaining a compliant and energy efficient rental property. Such moves are pushing landlords away, but there seems to be no easy way out either.

Selling with sitting tenants?

When there are sitting tenants, you automatically reduce the pool of buyers your property will appeal to, excluding owner-occupiers.

Landlords will be interested in tenanted properties provided they are in good condition and the tenant has a good track record of paying on time. They’ll also save on let-only/tenant find costs if using an estate agent.

The benefit to you is that you’ll continue to receive income during the sales transaction (provided the tenant is not in arrears), however, having tenants in situ could devalue the market price of the property by up to 25%.

You’ll also have to arrange viewings around your tenants’ availability.

Selling with vacant possession?

Selling a buy-to-let property or portfolio with vacant possession means the property will appeal to the wider market of landlords and owner-occupiers. You’ll likely get a higher price too, especially as the property will be chain-free.

It will be easier to conduct viewings and the conveyancing process will be faster, but in order to sell with vacant possession, you’ll have to go through the time-consuming and often costly process of eviction, risking having a vacant property sitting on the open market and generating no income.

Given that one in three property sales fall through on average, this could leave you funding a loss-making property for several months.

In addition, the condition of a rental property is not likely to be as good as an owner-occupied one and if your tenants feel disgruntled at being evicted, they could even damage it on purpose.

The fast and easy way to sell your rental portfolio

What is the best way to sell your rental property or portfolio? Find a professional cash buyer.

Professional property buying companies like Open Property Group will buy any rental property or portfolio, anywhere in the UK, for cash.

Whether tenanted or with vacant possession and regardless of condition, we will make a realistic offer based on the facts and complete within your desired timeframe – currently 13.2 days on average.

The benefit to the landlord is a fast, hassle-free and guaranteed sale with no fees to pay (excluding your tax liabilities).

There’s no need to engage an estate agent, and we will cover 100% of any legal and letting agent fees.

Contact us for a no-obligation cash offer.

 

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