What are the advantages of selling your buy to let property with sitting tenants? We take a look at the new process for working with landlords looking to maximise their returns throughout the sales process.
Mark Burns | 20th October 2021
With almost 4.5 million private rented properties in the UK, it's understandable that at some point almost every property investor will ask themselves 'what are the advantages of selling a buy to let property with sitting tenants?' After all, a cost effective exit strategy is hugely important to your overall returns, especially when considering the potential costs of using more traditional strategies such as high street estate agents, auction houses and quick buy, cash purchase companies.
The key advantage of selling a property with sitting tenants is that it allows you to earn rental income right up to the point of completion. It's worth considering that the average time to sell a property in the UK is 4.2 months (Source: The Advisory), and few would argue that this year has seen significant increases on that period due to Covid and conveyance delays. If the property sale falls through, you can easily find yourself back at the start of the sales process again! By keeping the tenant in place, you can potentially save yourself thousands of pounds in rental income, particularly relevant for those investors with buy to let mortgages to pay each month.
By selling your buy to let property with sitting tenants, you also avoid other costs such as energy bills and council tax, as these costs will fall upon the landlords during periods where the property is vacant. When combined with the significant costs from the buy to let mortgage, it's easy to see how these costs can add up each month. During longer sales and conveyances processes, these fees can become quite substantial, resulting in significant deductions in yield over the final year of your ownership.
It Doesn't Have To Be This Way!
Our resales service for investors focuses on an open and transparent approach with all parties, including your current tenants. At this point, it's worth noting that many tenants truely consider their rental property their home. It's where they work, where their friends are, and where their children go to school. In the vast majority of cases, they simply want to stay in the property and not be inconvenienced by the sales process. Our sales process works with the tenants, and discussing with them how we work is something we look to do at the very start of the process. We find that this will put the tenant at ease, as we explain that we are looking to sell the property to another landlord who will simply take over the ownership from the current owner.
If you are currently wondering how to sell a buy to let property with sitting tenants, and would like to find out more about our services for buy to let landlords, why not give us a call today on Tel: 0161 337 3891 or email@example.com
We look forward to hearing from you.