Specialist property sales for landlords

26 January 2023 2439 Views

As many buy-to-let landlords continue to question their place in the market with ever increasing legislation, finance and management costs, one company provides a simple solution for an easy exit.

LandlordBuyer, which is part of Open Property Group, is a professional cash buyer specialising in the purchase of rental properties and portfolios.

Selling a rental property, particularly in the current market, is not always easy as there are a number of factors to consider. Do you evict your tenants and leave the property empty, generating no income while it sits on the market? Or do you sell with tenants in situ, dramatically reducing the pool of potential buyers to investors, of which the number is dwindling fast?

With LandlordBuyer, landlords can offload their rental properties or whole portfolio at once regardless of whether it is tenanted or vacant. The business guarantees to buy any property regardless of condition, location, EPC rating or length of lease too.

The company, which is also a professional portfolio landlord, can exchange contracts within 21 days on average and bought a record number of rental properties in 2022 alone.   

Reasons why landlords are exiting the market

Various sources* coupled with our own anecdotal evidence from clients reveals that there are specific reasons why landlords are offloading their properties.

Although a handful may have chosen to cash in on the post-Covid property price boom to fund a healthy retirement, others are feeling forced to sell in cases where owning a rental property is no longer profitable.

• Tax changes – since Section 24 came into full affect in 2021, landlords can no longer claim full tax relief on the cost of mortgage interest meaning they pay tax on turnover, not profit.

• Rising costs – such as the additional Stamp Duty levy on second properties as well as licensing costs, general labour and materials for property refurbishments and, of course, energy bills if included.

• Increasing legislation – the raft of legislation in recent years, including impending EPC standards and the Renters Reform Bill, makes owning and managing a rental property not for the faint-hearted. 

• Management issues – whether tenants aren’t paying rent or landlords can’t find reliable letting agents to manage properties on their behalf.

• Short leases – even though leasehold reform is on the agenda, it’s still an expensive investment to make and can significantly reduce the value and resale potential of a property if not done before a lease term falls below 80 years.

Is being a landlord still worth it?

Historically property remains one of the best investment vehicles, particularly in the long term. However, landlords need to focus on more profitable locations and perhaps changing up the types of property in their portfolio.

By selling underperforming properties, investors can put their money into buy-to-let that gives the best returns.

Do you want a quick and hassle-free sale?

LandlordBuyer will provide any landlord with an instant cash offer for their rental property or portfolio. There are zero letting agent, estate agent or legal fees to pay and completion can be done to your preferred timescale.

Get your offer here.

*NRLA research, November 2021.