Wondering how to sell a property?  

Before you make a decision, there are several important factors to consider. From tenancy management to market options, ensuring a smooth and profitable sale requires careful planning. Read on to discover the 7 house selling tips that you should take into account before selling your investment property.

1. Is Selling Right For Me?

We’ve had so many conversations with landlords who want to sell their properties. They tend to have several reasons for selling, such as:

● The hassles of managing maintenance

● Tired of late-night tenant calls

● Low return on investment (ROI)

Some of these issues may be familiar to you. However, consider asking yourself, “Is selling right for me?” There may be alternative solutions that can cut out the headaches of owning your property. For example, there are management services that will take the stress of property

management off your hands. You may not be making enough money on your properties because your rents are too low. Just making a few changes may make the property a viable option to keep.

Ask yourself the following questions before you sell:

1. Am I selling for the right reasons?

2. What will I do with the money?

3. Do I have a plan of action for what comes next?

If you’ve thoroughly looked at your situation and determined that there are no alternatives besides selling, it’s important to consider the next two points. Each represents a different approach to selling your property.

2. Selling On The Open Market

The open market is the default option for most landlords. However, there are some things to consider if you want to successfully sell your investment properties in this space:

1. You will need to engage an estate agent

2. You will need to let the tenant know you’re selling

3. You will likely need to evict your tenant (your buyer will typically want a home to live in)

In addition to dealing with this, there is also a risk that your tenant will leave and the sale will go through. Tenants typically leave before the deal is closed. You could then be left with an empty property, causing you to lose income from the lost rent. Putting all of this together can be more

than a little tricky. The reality is that the open market may not be the right option for you. This largely depends on the type of property you have. Some properties will sell for more on the open market than others. Dealing with these headaches may be worth it for these properties.

However, for other properties, there is a better option.

3. The Off-Market Approach

Another path you could take is what we call The Off-Market Approach.

This method of selling investment properties has been highly successful over the last several years because it involves selling an investment property to another investor buyer. This other buyer is looking for a buy-to-let property and wants a deal where the tenant can remain in situ.

In the off-market approach:

1. You don’t have to evict your tenant

2. You don’t need to put the property up on the open market, hire an estate agent, or deal with hundreds of viewings

3. You don’t lose the rent until the sale is complete

The new buyer inherits the current tenancy and takes over management once they’re in ownership. This makes the whole process a much easier exit for landlords. Even if the sale falls through, you still haven’t lost your tenant or your income. Either way, the result is better for you and better for your tenant. The Off-Market Approach is something to consider if you are selling investment properties.

4. Consider Your Tenant

For this fourth factor in our list of home selling tips, we’re highlighting the tenant. Before you put your property up on the market or start offering it to investors, you need to have a proper conversation with your tenant. One of the things we’ve seen over the years is that one of the

hardest parts of selling a property is explaining your decision to your tenant. It’s easy for tenants to feel a sense of panic. They may have lived there for years, and they may even have children. You’re talking about selling their home.

It’s important to take your time. Speak to your tenant before you talk to anyone else, and don’t move too fast. Take the time to reassure them. Explain your plan of action and your intentions. If they don’t have to leave, explain that you are offering it to a new landlord and that there’s no

reason to think they’ll have to go anywhere. If you can explain everything to them, they won’t just understand; they will want to help you.

5. Tenancy Compliance

Sometimes, when landlords decide to sell a property that they’ve owned for several years, it’s not uncommon to find that they don’t have all their compliance in order. They may not have complete files, their paperwork may be outdated, or they might not have registered a deposit.

It’s important to remember that all these boxes need to be ticked before you attempt to sell your property. Before attempting a sale, we recommend doing a compliance audit to ensure that everything about your tenancy meets regulatory requirements. Compliant tenancies make your property more desirable to the right kind of buyers.

6. Does The Property Need Work?

Take an honest look at the property and evaluate whether or not it might need some work. First of all, is it a level of work that is worth you doing before selling the property to another investor? If you’ve owned the property for a long time and your tenants have lived there for

several years, it’s common for upkeep to be necessary. Is there anything that needs to be done to make the property a more attractive proposition? Sometimes, an affordable refurbishment project can be a relatively easy way to attract attention from investors.

7. Is The Rent Right?

We briefly touched on this in the first point, but the amount of rent you are charging is not only relevant for determining whether or not you want to sell. If you decide to sell, it’s important that your rent is at the right amount. When you’ve had a tenant in one of your properties for a long

time, you end up having a relationship with them. You don’t tend to raise rent when it corresponds to the value of the property. It’s so easy to fall hundreds of pounds a month behind the market rate. The problem is that a new investor will want the right returns from their investment. Mortgage rates are higher than they’ve been for a long time. There are many

financial challenges to investing in properties. It’s crucial that your rent amounts are as close to the market value as possible. If your rent is too low, you will only get low offers from investors.

We recommend you get into a position to review your returns and raise them, if necessary before you offer the property to an investor. This is a great way to get better value from your sale.

Take Your Time Before Selling

If you’re considering selling investment properties, be sure to consider these seven property-selling tips. It's essential to weigh the pros and cons of each selling approach and prioritise open communication with tenants throughout the process. Ultimately, finding the best solution

for both the landlord and the tenant is key to a successful and stress-free property sale.

Our free, downloadable guide can help you navigate these steps and more. Download the guide here