A three-minute must-read if you’re a landlord in Preston, Leyland or Chorley considering selling.
It’s often thought that being a landlord is easy: buy a property, rent it out, and hey presto! You’re all set. Unfortunately, it’s never that simple, and many landlords look to sell up for an easier life.
Whether it’s age, personal circumstances or changes in the law, in this article, we explore five common reasons why UK landlords sell their properties.
Let’s be honest, no landlord wants to take a call at 10pm from a tenant who has locked themselves out or can’t get the heating to work. For some landlords, the 24/7 nature of the role is just too much to deal with and selling their rental property is the best way to avoid such problems.
Perhaps a previously run-down area has seen a surge in buyer demand for property, or a refurbished property has increased in value. In both circumstances, by selling, the landlord benefits from capital appreciation, making selling a great idea. The recent boom in property sales has seen many landlords re-evaluate their situations.
For retired landlords, their property investment might also be their pension, so selling up is the only way they can get their money out.
Landlords with one or more properties often have a few mortgages to pay off. And while it’s always hoped that rental income will cover monthly mortgage fees, this isn’t always the case. By selling, a landlord can free up their initial investment (plus any additional profit), pay off the mortgage, and reduce overall debt.
Changes in tax or regulatory laws
The last few years have seen several government changes that have hit landlords straight in the pocket. These have all meant a drop in income, occasionally making it less profitable to own a rental in the short term, leaving many landlords rethinking their portfolios.
The pandemic has changed the face of the rental market. Many people have left cities for greener areas, while others require rental properties with outside space. This has had a significant impact on urban dwellings, leaving some properties vacant and landlords out of pocket. Many city rentals saw a drop in rent, while suburban and rural properties saw a rise.
Changes in rental demand could leave landlords with little choice, choosing to sell rather than to sit on vacant properties.
If you’re a landlord in Lancashire thinking about selling a rental property, contact us at PR Lettings & Management to find out how we can help.