There’s a notion amongst the property world that the quickest way to make a big return on any property is to buy, renovate and sell as fast as possible. This is a model that is well used by many of the property TV shows and certainly makes for good viewing, but sometimes it’s not all happy endings. Demand for property does drive the market, but it’s easy to forget that you’re not looking for a buyer, you’re looking for the right buyer who is willing to part with their cash for your property. Sometimes, unfortunately, this just doesn’t happen and landlords are left with empty properties. In this situation, the only way is letting…
Pricing and Marketing
In this situation it may not be particularly wise to go in with a market-leading price, though property purchases and lets are different, it is true that properties which aren’t popular when for sale don’t always perform that well when let. The situation here is to cover your costs as best as you can: that includes your mortgage, your unoccupied property insurance and any agent’s fees.
Keep Contracts Brief
If you are still looking to sell your property then don’t tie yourself into a contract you can’t get out of. Two month’s notice is standard, so don’t feel obliged to offer more. Make sure your tenants know your intentions and discuss their plans with them: a short term let may suit them just fine.
Don’t Be Too Dogmatic
Just because you initially wanted to sell your property, that doesn’t mean it’s the right thing to do in the circumstances. If your tenants are paying your mortgage costs comfortably and you have a reasonable cash situation then there might not be any need to change your current circumstances. Good growth on a property can come in just a few years, so sit tight: you might just find that being a landlord is for you!
It’s important to keep in mind the various options as a landlord, and the best landlords don’t always have tenants in their properties. The best returns come from selling at the right point, but if you can’t sell then let. It beats making a loss on your mortgage.