How to Sell your Tenanted Property for Maximum Returns

Your Options when Selling a Tenanted Property (Various levels of returns)

When it comes to selling a tenanted property, experienced landlords often have several options at their disposal. Each option has its own set of advantages and considerations, and the best choice depends on your specific circumstances and goals. Let's explore these options in detail:

1) Selling with an Estate Agent

If you want the most money and return on on your house, then opting to sell your rented property through an estate agent is a prevalent choice for many landlords. This route, while common, comes with its own set of considerations and steps to ensure a successful sale. Here's a guide to help you navigate this process:

• Consult Multiple Estate Agents: Start by speaking to at least three different estate agents. This will give you a broader perspective on the market and help you compare their services and fees.

• Consider an Agent-Finding Service: Using a service that helps you find a suitable estate agent can simplify the process. These services can connect you with agents experienced in selling tenanted properties.

• Beware of Overpromising Agents: Be cautious of agents who promise a sale price that seems too good to be true. It's essential to have realistic expectations about the property's value. Services like Property Solvers Express Sale can provide a realistic offer within 28 days.

• Evaluate Marketing Strategies: Ensure your property will be well-advertised. The agent should list your property on major portals like Rightmove, Zoopla, and Prime Location to reach a wide audience.

• Opt for a Sole Agency Agreement: A sole agency agreement can be more cost-effective and efficient, as you'll only deal with one agent throughout the process. In addition, confirm estate agent fees before signing any paperwork.

• Check Agent Reviews and Performance: Look at reviews and feedback from previous clients. Also, assess the agent's knowledge of the market and their track record in selling tenanted properties.

• Ensure Comprehensive Viewings: The estate agent should conduct thorough viewings and provide potential buyers with essential information about the property, such as energy efficiency ratings or details about the boiler.

• Verify Experience with Tenanted Properties: Selling a property with tenants can be more complex. Ensure your estate agent has practical experience in this area and ask for proof of their expertise.

Once you've chosen an agent, they should liaise with your tenants to organise viewing times. Remember, your tenants have statutory rights, including the right to consent to each viewing, receive at least 24 hours' written notice, and live in 'quiet enjoyment' without unnecessary disturbances.

Bear in mind that selling through an estate agent may take longer, and the timeline can be uncertain. However, with the right preparation and the right agent, you can navigate this process successfully.

2) Exploring the Auction Route for Selling Your Tenanted Property

Auctions can get you a solid price and still sell reasonably quickly (assuming there are no issues with lending on the buyers side). In the evolving landscape of property sales, auctions have become a more transparent and accessible method for many landlords. The rise of auction houses and the advent of the 'modern method of auction' – a hybrid between traditional auctions and estate agent sales – have contributed to this trend.

Auctions often attract a diverse pool of buyers, including landlords looking to expand their portfolios, professional property investors seeking properties to refurbish, and even regular buyers searching for a fixer-upper family home.

Advantages of Selling at Auction

1. Efficient Buyers: Auction buyers are often business-oriented and aim for quick transactions, reducing the likelihood of dealing with indecisive or non-serious parties.

2. Acceptance of Property Conditions: Many auction buyers are accustomed to dealing with properties that have structural issues or problems like Japanese Knotweed, making it easier to sell properties with such challenges.

3. Secure Finances: Once the hammer falls, contracts are exchanged, and buyers typically have between 20 and 28 days to complete the sale. Serious buyers will have their finances ready, ensuring a smooth transaction.

4. Reduced Risk of Withdrawal: If a buyer decides to pull out, they risk losing their deposit (usually 10%) and incurring additional fees and penalties. This makes such incidents rare.

5. No Gazundering: After the auction, the risk of 'gazundering' – when a buyer suddenly drops their offer before exchange and completion – is eliminated.

6. Private and Off-Market Sales: Many auctioneers also handle private and off-market sales, providing additional channels to expedite property sales.

Considerations When Selling at Auction

1. Timeframe: The entire auction process, including marketing, viewings, valuations, and waiting for an auction slot, can take longer than expected. After the property has exchanged, buyers usually have another 20 to 28 days to complete.

2. Open Days: There will be 2 to 3 open days for potential buyers to view the property, which may cause some disruption to your tenants.

3. Fees: Renowned auctioneers offer specialised services, which may mean higher commissions than traditional estate agents. Be wary of low auction fees as they may result in poor marketing of your property.

4. Additional Costs: Depending on the auction house, you may have to pay for enhanced advertising, room hire fees, and access to the online platform. You will also need to cover your own legal costs.

5. Reserve Price: Setting the right reserve price is crucial. If it's too high, people may not bid at all, resulting in a loss of time and money if the property doesn't sell.

6. Competition: Your property may be competing against numerous other properties, which could affect whether you meet your desired reserve price. If your property doesn't sell, it could be pushed to the next auction, causing further delays.

3) Selling to a Property Buying Company

In the fast-paced world of property sales, selling to a cash buying company, often referred to as 'cash buyers', has emerged as a viable alternative for landlords. These companies offer a quick, hassle-free route to selling your tenanted property, making them an attractive option for those seeking to avoid the traditional property sale market's complexities.

The Perks of Selling to a Property Buying Company

1. Swift Transactions: Property buying companies are known for their ability to expedite the buying process, often completing purchases in as little as a week. This speed can be a significant advantage for landlords seeking to sell their properties promptly.

2. Assured Cash Sale: All legitimate house buying companies use their own cash funds and once they make an offer and you accept it, the sale is almost always guaranteed. This assurance eliminates the uncertainties associated with traditional property sales.

3. No Property Chain: Selling to a home buying company means there's no property chain to worry about. This lack of a chain can significantly simplify the sales process and reduce the risk of the sale falling through.

4. Ease and Convenience: Property buying companies typically manage most of the sales process, including dealing with solicitors and handling paperwork. This convenience can significantly reduce the stress associated with selling a property.

5. Property Condition: Unlike traditional buyers, property buying companies are usually not deterred by a property's condition. They are often willing to buy properties that require renovation or repair, providing an outlet for properties that might otherwise be difficult to sell.

Points to Consider When Selling to a Property Buying Company

1. Offer Price: House buying companies are businesses looking to make a profit. Consequently, they may offer below market value for your property. It's essential to weigh the convenience and speed of the sale against the potential lower selling price. For more information: Do cash buyers offer less?

2. Company Reputation: As with any business, the reputation of companies can vary. It's crucial to do your research and choose a reputable company to ensure a smooth and fair sales process.

3. Transparency: Some home buying firms may charge fees for their services. Make sure you understand any fees or charges upfront to avoid unexpected costs down the line.

4. Legal Advice: While companies that buy houses often handle much of the sales process, it's still advisable to seek independent legal advice. This can help protect your interests and ensure you fully understand the sales agreement.