When is a good time to sell a rental property?
If your tenants are happy and paying their rent on time, it can be tricky to find a good time to sell a rental property.
Maybe you’ve had enough of being a landlord? The rental market in Southampton is changing and student tenants are being lured away into purpose built blocks.
The council is keen to have ex-rental property returned to family homes and demand is high so now is a good time to sell.
Maybe you had a 10 year plan and that time is up. Perhaps this is a retirement nest egg and you have new plans.
How do you get the best price for it?
Go and look at your property with fresh eyes. Does it look like a home?
Most rental properties are now being sold to families, not other landlords. A house or flat that looks homely is more appealing to this kind of buyer.
A house that looks like it ‘used to be a renter’ will not sell for a premium price.
Sell with tenants in situ or give them notice?
There are fewer landlord buyers than there are family buyers so selling with vacant possession is a better idea. If you have untidy tenants your property won’t be shown in a good light either.
Check your tenancy agreement and take the advice of your letting agent. Usually you can only sell a rental property with advertising in the final two months of an AST. Arranging viewings when tenants are still living in the house can be difficult if you don’t respect their space so be considerate.
Talk to your tenants and explain your plans. No-one wants to come home to a For Sale board in the garden without knowing why.
Selling when tenants have moved out
This is when you may need to get the carpets cleaned, repaint some walls and do some general maintenance so buyers don’t see a lot that needs to be done when they move in.
Think about putting living room furniture in the downstairs rooms, getting rid of broken furniture and remove the desks if this was a student let. Keep the beds upstairs, preferably with sheets, duvets and pillows on them!
You will also need to work out if you can afford to pay the mortgage and council tax when you have no rental income.
Don’t spend too much or go overboard on replacing a lot though, new owners will want to put their own mark on a property. If you spend big on a new kitchen or bathroom you won’t get your money back.
Call us if you need some specific advice 02380 632111