Selling Buy to Let Empty Property...
Some first time landlords that now have their
properties on the market are struggling to sell their properties in a
timely fashion. The number of empty landlord properties awaiting sale is
now a major part of the overall one million empty properties in them UK.
The average length of time it takes to sell a property has increased from
just over two months to three months as buyers are now becoming more
choosy and fewer buyers are coming on to the market. To reduce the time it
takes to sell your buy to let property, the following tips be helpful to
the novice landlord:-
Plan Your Notice Period Carefully - if your buy
to let property is already empty this is clearly not relevant. However if
you still have tenants in your property and plan to sell the property at
the end of the tenancy, make sure you have provided written notice to your
tenants according to its terms and in good time. The sooner your tenants
have time to plan had to move out and find accommodation elsewhere, the
better. Some tenants may agree to leave for property before the tenancy
agreement date if rental commitment is excluded. Each situation varies and
so being on speaking good terms with your tenants or letting agent is
really important. If you have difficulties with your tenants, make sure
you understand the notice periods carefully of your assured short hold
tenancy agreement. Any administrative error on your part could result in
unnecessary delays and hence losing potential viewings for prospective
purchasers once the tenants leave. In some situations, tenants may agree
to accept viewings from your estate agent with potential buyers for the
property. A purely practical issue is one of access to the property for
viewings (in a market where buyers are now gazundering sellers).
Set a Realistic Price - in a falling market it's
difficult to judge a realistic sale price. You are reliant on your estate
agent to provide local knowledge of the market. Get a range of valuations
from a number of local estate agents and do not rely on the first when you
receive. The council for mortgage lenders have estimated that property
will fall by 35% to 40% this year while mortgage brokers have speculated
that it will only between 5% to 10%. Calculate the mortgage and
maintenance costs of keeping the property empty verses of the reduction in
price have in order to achieve a quick sale. Bear in mind there are fewer
buyers coming into the market and more empty competing property for sale
from landlords also selling up. With the credit crunch reducing
product availability of
buy to let mortgage products, landlords
trying to sell up and finding the market is narrowing to residential home
buyers and not other landlords. The first time buyers are particularly
nervous about entering the market at the moment so achieving a quick sale
means a realistic price must be offered. If you have been struggling with
the price for a while with no real offers, ask for feedback from potential
buyers and your estate agent to understand whether the price is the real
issue or a weather it is another factor putting off potential buyers...
Invest in Presentation - most rental properties
suffer from general wear and tear as a result of tenants usage over the
years. Chips and knocks in the furniture, carpet stains from spills,
smudges and marks in the paintwork will not help to improve the
attractiveness for potential of buyers. It is likely that your potential
buyer will be purchasing it for residential usage and not as a landlord
seeking a buy to let investment. Therefore, tidy the property, remove
clutter, give the walls a lick of paint and hide any personal possessions
away. An emotional buy and the biggest of their life, first time buyers
will expect a well presented clean and tidy property.
Protect Your Investment - make sure you ring
your insurance company or broker to confirm your buildings and contents
are covered with no tenants living in the property. Some
buy to let insurance policies exclude
empty property and those that allow it
may insist on practical considerations. For instance, constant checking of
the empty property by you, proper heating to prevent damp and adequate
door and window security may all be conditions of a landlord insurance
policy.
