Whether you have a portfolio or a single buy to let property, there will come a time when you consider selling. There are lots of things to think about, such as whether to sell tenanted or vacant and the tax implications.
Selling a tenanted property
If you have good tenants, they could be a valuable asset if your buyer wants to continue letting the property. It is best to talk to your tenants first and find out whether they want to buy it. The market for a tenanted property is more limited than for a vacant property, as selling a tenanted property means that you would be aiming your property at other landlords looking to start or expand their portfolio and make an income from the rent immediately. Selling in this way brings with it a lot of administrative hurdles that you need to consider to ensure your sale is completed and your tenants and buyer protected.
Selling a vacant property
If your property is vacant, you can put it on the open market, which may command a higher price. You will need to fulfil your obligations as a landlord by giving your tenants sufficient notice so that they can find another home. You will also need to spend time and money on your property to make it sale-ready after your tenants leave so that you can achieve the maximum price. Whether this is to do with the maintenance, decorating or tidiness of the property, what it looks like can have a very big effect on the achievable price, especially on the open market.
What to do next
Once you know where you stand, it is time to move forward with your sale; however, make sure you understand the tax implications. If you want help selling your property or portfolio, using an agency that utilises a property inspection app from a provider such as https://inventorybase.co.uk/ can be a great help.
Whichever way you decide to sell, communication is key. Buying and selling property, like moving to a new house, is one of the most stressful things you can do – the more parties that are involved, the more potential for miscommunication and added stress there will be. Keep it as simple as possible and find out where you stand before you decide on your strategy.