6 things a landlord should check when selling a rental property
Estimated reading time: 3 minutes.
Sian Hiatt, Sales Manager, highlights 6 important things a landlord should check before deciding to list their rental property for sale...
For many landlords, the time arrives when selling their rental property makes sense. Perhaps you’re looking to liquidate all assets so that you can enjoy a carefree retirement, or plan to use the funds to start a fresh life elsewhere or have inherited a rental property that you’d prefer to sell so that you can use the cash for other plans and ideas.
There are things that a landlord should consider ensuring they work their way through the rental property selling process legally and with what makes the most financial sense in mind. For this reason, landlords wishing to list their property investment for sale often seek advice from letting agents and solicitors, especially when the property is occupied by tenants.
You should first discuss your situation with your letting agent so that you can carry out a property valuation before deciding whether selling remains the best option for you personally. You may want to also consider property management options if you’ve been managing the property yourself, but if the price you could potentially receive by selling is attractive enough for you then you can move on to the next part of the process - checking important things!
While listing your rental property for sale, check the following:
1. Your mortgage situation
If you have a buy-to-let mortgage on the property (or a consent-to-let), check whether you’re currently locked into a fixed term. If you are, you may need to factor in early repayment charges for settling the debt early, meaning it might make sense to hold on until that fixed term ends. In any case, it will all depend on your personal situation, but this is the first thing you should at least ensure you’re aware of.
2. The current tenancy agreement
Check the current tenancy agreement you have in place with your tenants so that you can work out exactly when you can regain control of the property. Are the tenants in a fixed term or is the tenancy running on a periodic tenancy? This will determine when you can serve notice to your tenants.
3. The notice period
In Wales, a landlord is required to serve tenants with 6 months’ notice before they must vacate the property.
4. Gaining access and conducting property viewings
You will need to be aware of what your tenancy agreement states in regard to access and property viewings. Most agreements will stipulate that the landlord can carry out viewings during the last month of the tenancy but be aware that tenants can refuse viewings if the day or time doesn’t suit them. Nobody can enter the property without the tenants permission. Should the tenant continually refuse access, the landlord may need to obtain a court order to enter or may have to simply wait until they vacate - one reason among many while it’s always worthwhile forming a positive landlord-tenant relationship.
5. The possibility of selling the property to the tenants
In some cases, the tenants were always saving up to eventually purchase their own property. Once they learn of your desire to sell, they may inform you that they would be willing to buy the property, so it’s a conversation worth raising. You can still use the services of an estate agent to negotiate a fair sale price and progress the sale, while conveyancing solicitors can sort out the legal side of things. You can time it so that the tenancy ends on completion of the sale to the tenant.
6. A need to prepare for a potential void
Once your tenants are aware you’re listing the property for sale, they may soon vacate for somewhere that offers them the security they need. Therefore, it’s worth ensuring you have savings to cover the potential void you may experience between the tenants vacating and you being able to find a buyer and complete the sale.
Would you like more expert advice on selling your rental property? If so, don’t hesitate to contact our experienced lettings and sales team here at CPS Homes in Cardiff. You can contact us by calling 02920 668585, e-mailing enquiries@cpshomes.co.uk or by popping into one of our three Cardiff branches.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
