Do I Sell or Re-Let?

In this increasingly legislative and onerous rental market, it is a real challenge for Landlords of long standing rented properties that have been let for years where little remedial maintenance or improvements having been undertaken. The simple choice is often just to give the tenant notice and to sell it; but before doing that look at the options available.

• First and foremost, find out what work is required and what approximate costs are being looked at. Would the work help to improve the sale price or letting potential to obtain a higher rent?
• Next talk to your accountant and discuss the tax implications in relation to maintaining or improving the property and how the maximum allowable amount can be claimed back. Also look into what taxes you will have to pay when selling it, normally Capital Gains Tax, and get some perspective into the re-letting option.
• Having looked into what avenues are possible get the property valued by at least two reputable estate agents to find out the current value and the expected value once the work was completed.
• Talk to an independent letting agent to get an unbiased and impartial opinion on rental values before and after the work.

Once all of the facts have been obtained, a clear path of action should be visible and an unemotional, objective decision can be reached.

If major improvements are to be made make sure you are clear on a timescale and budget for a loss of income, the cost of the works and loss of rental whilst they are undertaken.

It will also be advisable to get a new Energy Performance Certificate produced before re-letting or selling as this should highlight the new energy savings and the cost efficiency of the property.

If you would like advice on renting a property, the options available to you and to ensure you are compliant with regulations do get in touch. As a consultant I can offer a pick and mix service ensuring you get what you need at an affordable price. Find out more on my website here