01 Mar 2021
At Ultralets we specialise in the letting, management and maintenance of investment property. Whilst we mainly help landlords invest in property we’re also on hand when our clients decide the time is right to sell.
If a landlord plans to sell a property that is currently let and producing an income they have a very difficult dilemma; Do they move the tenant on or wait until it becomes vacant then spruce the place up and list it on the open market to try and achieve a top price from a first-time buyer or owner occupier? Or do they sell to another investor for slightly below market value and draw an income from the property right up until completion.
These are the 5 main reasons landlords come to us to sell.
#1 - Loss of rental income whilst the property is vacant prior to completion. If the tenant moves out it could be months or even years until a sale completes on the property. That’s months or years that you could have received rent for.
#2 - Council tax is payable by the landlord as soon as the property is vacant and doubles after 12 months so selling to another investor means no liability right up until completion.
#3 - Privacy; it would be a shame for a tenant to be nervous of the stability of their tenancy when there’s no reason to be. No boards. No Zoopla. No Rightmove. The tenant is always notified of a sale at the required time.
#4 - It’s highly likely that when the tenant moves on, light work or potentially full refurbishment will be required to achieve a top price. None of which would be required when selling a tenanted property. It would be up to the new owner to carry out any non-essential works following their purchase or when that tenant leaves.
#5 - Our buyers trust us. We have a network of hundreds of property investors who know we're the highest-rated agent in Hull. Sellers instantly get access to that client base when they list with us. If we have a history with the management of the property we can verify the tenant is legitimate, the rental income is stable and we will likely have a track record of and repairs carried out which gives the buyer increased confidence in the property they are buying. Any property that we list for sale we would be prepared to manage (if we’re not already) at the quoted rental valuation.
In some cases, we will advise landlords that it makes more financial sense to sell their property on the open market if it isn't viable as an investment opportunity for our buyers. We work with reputable high street estate agents that we can recommend in those circumstances.