Selling your rental property
According to the Residential Landlord Association, one in four landlords are either currently selling or have already sold their former rental properties as a result of recent legislative changes.
Landlords have been put under significant pressure, as the government introduced changes to buy-to-let regulations, tax relief and stamp duty. In additional to these existing pressures, 2018 will see the introduction of the minimum energy efficiency requirements, where it is predicted that one in ten current rental properties will be classed as unrentable!
Whether you are a landlord with a huge portfolio of properties or a hobbyist landlord with just one buy-to-let, Quick Move Now, the UK’s largest property cash buyer has over £6 million waiting to buy former rental houses if you are looking to sell!
What are the recent changes effecting landlords and is buy-to-let still a viable option?
April 2016 – Stamp duty tax rise of 3%
April 2017 – The loss of buy to let tax relief
April 2018 – New minimum energy efficiency requirements to rental sector
It has also been reported that tenants not paying rent is set to be a landlord’s biggest challenge in 2017. With tenants reporting to already be paying up to two thirds of their salary on rent, and with rents set to rise over the next 5 years, landlords should be thinking about a contingency plan (if they haven’t already)!
Last year we reported that one of Britain’s biggest Landlords, Fergus Wilson, who once owned 900 rental properties had sold half of his portfolio due to stricter lending criteria, stamp duty hikes and other changes. So, is it time for other landlords to follow suit?
There are many reasons why a landlord might want to sell their rental property/properties, here are some of the most common;
- Cash in on the equity: If you have owned your rental property for a while, it’s probable that you will have built up some substantial equity. Selling would be an easy way to get your hands on some extra cash, fast!
- Not profitable enough: With the increase in stamp duty and the cuts to tax relief, more and more landlords are taken the decision to sell up as their profits are turning into loses!
- Too much hassle and stress: Unless you are lucky enough to have a long standing, conscious tenant, being a landlord can be a stressful responsibility. Whether you’re thinking of retiring or you’ve just had enough, you can sell you rental property at any point!
- Relocating: Maybe you’re planning a move and don’t want the hassle of being a long-distance landlord. Why not sell and buy something closer to your new location?
Whatever the reason behind the sale, remember it is your property and your money and you are entitled to sell it anytime you wish. However, if you still have tenants in the house, you must make sure you are aware of the process for selling a house when tenanted.
This process will depend on the type of lease agreement that’s in place. The two most common types of lease agreements are;
- Rolling monthly agreement
- Fixed-term lease agreement
If you want to sell your rental property and your tenant is renting on a rolling month contract, you just need to give your tenant written notice to vacate. Notice would need to be in the form of a postal letter and must arrive with your tenant 30 days before you would like them to leave the property.
Selling when your tenants are on a ‘fixed term lease’ is slightly trickier. If you have a good tenant that always pays on time, you have to wait until the lease expires before you can sell, but If your tenant is violating the terms of your agreement you may be able to end the lease early .
Common problems after you’ve informed your tenants you’re selling
If you do decide to start the sale process while your property is still tenanted you could run into these common problems:
- They may give notice to leave the rental, leaving you with a void period until the property is sold. An empty property not only costs money to maintain but also increases the risk of vandalism.
- They may become problematic and refuse to give access for property viewings while trying to sell.
- They may deliberately make the property look untidy to deter a successfully property sale.
There are many legitimate reasons landlords may wish to sell up and exit quickly. Recently, Managing Director of Quick Move Now, Danny Luke joined Property Tribes Owner, Vanessa Warwick to discuss how our professional property buying services can assist landlords:
What are your choices if you are looking to sell your rental property fast?
Sell your rental property fast to a cash home buyer like Quick Move Now
Since our inception in 1998, Quick Move Now has directly bought thousands of former buy-to-let properties. Our 24-hour cash guaranteed has helped landlords across England and Wales to be free from their former investments in as little as 7 days!
No other house sale method can offer you this lever of speed and certainty! What’s more, there are no costs involved and you are under no obligation at any point of the house sale process.
Why sell your buy-to-let to Quick Move Now over any other cash home buyer?
Unlike other cash home buyers, Quick Move Now have the cash reserves to enable us to make instant decisions and directly buy properties.
By selling to Quick Move Now you are in complete control of the completion date. So, get a cash offer before your lease agreement ends, that way, you don’t need to worry about any void periods when your rental property might be empty.
Once you have accepted our formal cash offer, Quick Move Now can complete on the house purchase in as little as 7 days, meaning no risk of unnecessary overheads like mortgage payments, council tax and energy bills or any risks associated with an empty property i.e. vandalism, theft etc.
Sell your buy-to-let property at auction:
Selling your former investment property at auction could be a solution if you’re looking to achieve a quick house sale, but be aware, there are no guarantees when selling at a property auction! If you do choose to go down the property auction route, you should fully research your options first.
Sell rental property to the tenants:
Selling the property to the tenants may be an option, especially if there are long standing tenants. If financial viable, selling directly to the tenants is a hassle-free way of getting rid of your rental property. You won’t have to pay for removals or deep cleans but you will have to build in time for your tenants to get their finances in place as well as allowing time for conveyancing.
We Buy Any Rental Property across England and Wales
At Quick Move Now we specialise on buying properties for cash quickly. As the original and largest cash home buyer, we have bought in excess of 5,500 properties and we could buy your too!
Main benefits of selling to a cash home buyer:
- The quickest way to sell a house guaranteed! – We can even buy in as little as 7 days if required
- You are in complete control of the completion date. Tell us when you want to complete and we do the rest!
- No fees or obligation at any point of the house sale process
- We directly purchase using our own cash reserves. We never use brokers, investors or mortgages to buy, so decisions can be made instantly
- No estate agents, no fees and no hassles
- We cover the cost of your legal fees
- We are the ONLY home buyer to have a 24-hour cash guarantee, meaning the money will be in your bank on the day of completion!
Commenting on the changes to Buy-to-let, Danny Luke says:
“The landscape has changed greatly for buy-to-let property investors in recent years, but these new changes are causing many property investors to look at selling off their less-profitable properties and ‘cashing in’ before things get tougher.
Many of those who invested in property at the height of the buy-to-let boom, perhaps to provide an ‘easy’ second income, or as a long-term investment instead of private pension, quickly found themselves out of their depth once the recession hit, and have been trying to ride out the storm since. Unfortunately, these new changes have proven too much for many and we have seen a vast increase in the number of calls we have received from those wanting to ‘cash in’ their former buy-to-let properties before things get any worse.
Property is no longer the same investment prospect it once was – there is still money to be made, in the long term – but at what cost?”
One former landlords, David Williams, explains why he used Quick Move Now to buy his former rental:
“I was ready to sell my rental property and was looking for convenience, security and speed above all. Frankly the costs of running a house in Southport was hefty and living so far away made managing the property very complicated. With heating, council tax and other maintenance costs, the empty house was costing me upwards of £1000 per month. I knew that if I held onto the house and try to achieve better price on the open market, the travel time, repair expenses and unforeseen delays would have ended in me spending more money time and stress!”
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Will Quick Move Now buy rental properties with sitting tenants?
Quick Move Now will buy a house with sitting tenants, however the property must be vacant upon completion.
Will you need to enter my rental property in order to give me a cash offer to buy?
Quick Move Now can give you an indicative offer without entering your buy-to-let, however entry to the property will be required to gain a formal offer. Quick Move Now use local, independent estate agents to carry out property valuations.
How much notice do I need to give my tenants before I sell their home?
It depends on the lease agreement. The two most common types of rental lease agreements are;
Rolling monthly – where generally the tenants need to have 30 days’ notice before they vacate.
Fixed lease agreement – Totally dependent on the agreement in question.