Selling a rental property – Considerations for landlords
If you want to sell your rental property, then you should start by asking yourself two questions.
Do I want to sell it with a tenant in situ?
There is no right or wrong answer. For some properties an existing tenant is an asset and helps to sell the property to a landlord who wants the continuous income. For other properties it can deter buyers.
Is the timing right regarding capital gains tax?
We recommend mentioning the sale to your accountant just to check that you are optimising your tax planning.
Talk to us about the former and we can give you the names of several reliable accountants for the latter.
In fact, your first port of call should always be your letting agent. They will be able to speak to your tenants and see if they might be interested in buying the property.
Even if they are not interested, it will still help to have them on board for viewings. Lack of sensitivity from Estate Agents often causes problems with viewing access, which we are used to resolving.
Your agent will be able to:
Arrange for valuations of the property from a suitable number of local agents, making sure that they are the right agents for the property. Choosing the right agent is probably the most important part of selling: you wouldn’t go to an Aston Martin dealer to buy a Vauxhall, for example.
Liaise with the tenants to arrange viewings. Remember that selling a let property is nowhere near as straightforward as selling your own home, when you will probably do anything to help with the sale. Your tenants are paying for the right to live in the property and they can make the viewing progress quite painful if they are not dealt with respectfully.
Negotiate the terms of the sale with the agent on your behalf, and recommend local solicitors. Remember that professional letting agents are experienced negotiators and will be able to secure the best possible result for you.
Help you to find a new property if you want to re-invest the money from the sale.
This is one of the 50 most asked questions in our book: Landlord Intelligence.