Selling rental property in today’s market can be complicated. Even though asking prices continue to rise, selling your home is a daunting task for most homeowners. Listing the property with an agent, repairing and updating, and advertising your home costs both time and money. Estate agents have been known to be slow and expensive. But what about the added pains to selling an income generating rental property? Believe it or not, selling rental property in Hull, Goole, Lincolnshire and Yorkshire doesn’t have to be a months-long nightmare.
Selling Rental Property: The Right Time
Like most things, selling rental property in Hull, Goole, Lincolnshire and Yorkshire is all about timing.
Determining the right time to sell your rental property means considering a multitude of factors. Selling a house in Hull, Goole, Lincolnshire or Yorkshire is not only more complicated than purchasing, it also requires more risk. With that in mind, consider these factors when selling rental property in Hull, Goole, Lincolnshire or Yorkshire.
Before selling, evaluate the current state of your rental. Rental properties are notorious for being hard to manage, even with an attentive and well-meaning landlord. Whether it’s a lack of cooperative tenants or the inability to foresee the emergence of major repairs, a rental property can fall into a state of disrepair fast. Needing major repairs without having access to the home or funds set aside for them can create a massive financial loss that’s unappealing to most rental property owners. It may be time to sell.
Does your property generate a negative cash flow? Does it cost more to own and maintain than the income it produces? Even rental properties with the highest rent in the best neighborhood can be too costly to keep.
Owning the ideal rental property in Hull, Goole, Lincolnshire and Yorkshire, means paying for property upkeep, council tax, utilities, insurance, among other monthly expenses. Your tenants are paying for a property in the best area, but you’re paying more for maintenance and management. After expenses, is what’s left enough, or can you yield more revenue in other investment opportunities?
Like most markets, the rental market can be uncertain. A good year for rental property owners can mean increased appreciation and profit. But a market downturn can hemorrhage your savings. A once profitable piece of property can become an anxiety-inducing nightmare. Consider your long and short-term goals. If you envision your investment as more of a financial liability than a guarantee, it’s time to consider selling rental property in Hull, Goole.
Selling with a Tenant
So you’ve decided to cut your losses and sell your rental property. Now what? If you have current tenants, you might be wondering about the complications concerning selling your rental property with tenants.
Even if your tenant is one of those rare, dream tenants – they’re tidy, never call after hours, and care for your property like it’s their own – selling your rental with a pre-existing tenant is more of a hassle than selling an empty home. Having a tenant is also a deterrent for many potential buyers. Like it or not, when you’re selling rental property with tenants you’re selling rental property with an existing tenancy. You reduce the pool of potential buyers. Some home buyers can wait until a tenancy expires to move, and will buy your property without worry. But most want homes that are move-in ready the day of closing. Unless you’re trying to attract landlord buyers and other investors, selling a home with a pre-existing tenant can be limiting.
Some rental property owners even offer tenants a reward for keeping the home in peak condition. These rewards can include lowering their monthly rent or giving them gift cards to spend the day of a viewing. Selling tenant-occupied property can be tricky, but it’s certainly not impossible. While some buyers avoid tenants, others flock to the chance at owning a rental property that produces consistent income day of sale. If you can offer your tenant an incentive for the inconvenience of showing your property and helping with the upkeep, you’ll generate more potential buyers. More buyers means more bidding, and more bidding means achieving the maximum price possible when selling rental property in Hull, Goole, Lincolnshire or Yorkshire.
Selling at a Loss
When selling rental property, it’s smart to consider the taxes imposed on your capital investment. It might be the least of your worries, but you may need to pay tax on any profit you earn while investing.
If you’re selling while the market is favorable, you’re overall equity has increased, expect to pay a capital gains tax. But what about selling rental property at a loss? Although very few investors buy property to lose money, it happens quite often. It’s one of the major risks of property. It can happen for any number of reasons, including a property-specific problem or the market losing equity.
Selling at a loss means the property drops in value causing you to lose money when selling. Selling rental property at a loss isn’t only a viable solution to selling your investment, but can be a strong business plan to invest in future properties.
Selling rental property in Hull, Goole doesn’t have to be stressful when considering all the factors before choosing. Is it the right time to sell? Do you need to sell with tenants? If you can answer these questions with assurance, selling your rental can be an easy decision with multiple benefits.
Sell your house to a cash buyer: advantages and disadvantages
Cash buyers are probably going to offer you less than the asking price. But the fact you’re going to save money on costs and other expenses like repairs, solicitors fees, estate agents fees you are likely to find yourself coming coming out with more money. Estate agents fees can be 1-3% or £1,000 – £3,000 on a £100,000 property.
When it comes time to get paid, you should get the option of getting a cheque or having the money transfered into your bank account.
Even if you don’t sell to K&G Lettings Limited, feel free to ask us any questions you may have regarding selling your rental propertyhouse. We’ve helped lots of homeowners sell their house in Hull, Goole, Skegness, Yorkshire and Lincolnshire. Give us a call now at 01482 961961.
