Need confirmation that now is the time to sell your rental property? You’re not alone. The rental market is in a precarious state and even the most experienced professionals can’t call whether there’s any profit left in private lettings.
It’s the doubt that will kill off your joy and prospects, so it’s no surprise we buy rental properties from landlords who can’t face the uncertainty, as well as those who are already making a loss.
If you’re on the fence whether to continue as a landlord or are worried your buy-to-let is about to cost you money, here are 5 signs it’s time to sell your rental property.
- You’re using your own, personal money
If you’re dipping into your savings or every day account to pay for anything buy-to-let – whether its insurance policies, repairs, management fees or even mortgage repayments - it is probably time to sell your rental property.
While investing in property may initially involve a personal lump sum, the day-to-day running costs should be covered by the rental income and any profit that’s generated. If you have been contributing money out of your own pocket to keep your investment afloat, sell your rental property now and you’ll feel rich! - Your fixed-rate mortgage is coming to an end
Are you one of the 1.43 million landlords with a fixed-rate, buy-to-let mortgage with an outstanding balance? This figure, contained in a UK Finance Q4 2024 report, is a huge red flag. We buy rental properties from landlords who can’t afford the new interest rate when they remortgage.
Many property investors are struggling as favourable mortgage rates of 2% are a thing of the past. Instead, buy-to-let mortgage rates are in the region of 5% - more than double what many landlords are currently enjoying. You can sell your rental property to LandlordBuyer in less than a month - before a fixed-rate expires – and avoid flipping to your lender’s standard variable rate or having to remortgage with punishing repayments. - You know you’ll need to regain possession soon
If you want to live in your buy-to-let yourself, move a family member or friend in, or want to exit the market to cash in on value, you will need to sell your rental property. Sell it quickly and you will dodge the Renters’ Rights Bill.
This proposed legislation, which seeks to ban Section 21 notices and will restrict the reasons for a landlord to evict a tenant, is at the Lords’ committee stage. There’s a narrow window of opportunity to regain possession but leave it too late to sell your rental property and you will face a tricker time getting your asset back. - Your buy-to-let’s EPC is E or D
If your buy-to-let is just about legally compliant with an EPC of E or D, now is a great time to sell your rental property. LandlordBuyer’s recent blog on changing EPC requirements – whereby all rental properties will need an EPC of at least a C from 2030 – highlights how landlords don’t always have the thousands of pounds to make energy efficient upgrades and retrofit eco technology.
We buy rental properties with every type of EPC rating and are happy to purchase the least energy efficient homes from landlords. We’re finding there is little appetite for homes that have very poor EPC ratings, with the open market much preferring eco-friendly properties that are cheaper to run. - You want to reduce your risk & exposure
Portfolio landlords are the most exposed as double or triple the amount of properties is also double or triple the risk. Reducing the size of a portfolio, or selling a portfolio in its entirety, is a smart strategy.
Although we buy rental properties, LandlordBuyer also purchases part or complete portfolios. You can identify the weakest, worst performing properties and we can make you a cash offer, reducing your risk, improving your cash flow and decreasing your exposure to a volatile market.
If any of the 5 points above have hit a nerve and you’d like our team to explain how to sell a rental property in the quickest time frame, contact LandlordBuyer. We’re ready with cash offers and sound advice. Alternatively, start the process online - request a buy-to-let valuation here.