If you have reached the stage where you want to sell a rental portfolio, then you could find yourself facing something of a dilemma.
Depending on the end buyer, residential investment property, unlike commercial assets, often sells best with vacant possession. If your properties are fully tenanted, life can become a little more difficult. You will know that any investor buying with tenant in place will typically be looking for at least a 10% markdown on the price that could be achieved if you sold with vacant possession. The hard fact is you probably won’t be blessed with a long queue of buyers willing to adopt your tenants.
So, you may even be wondering: “How can I sell my tenanted property portfolio? Where do I find a buyer who will take them subject to the existing tenancies and pay the price I want?” You know, if your tenants go, you will still need to carry the ‘hungry mortgage baby.’ What you don’t know is how long, exactly, are your houses going to be empty? It’s this uncertainty and ‘not knowing’ that creates concern and stress.
You can’t just end a shorthold tenancy on a whim. That means if you have a buyer who expresses an interest, your tenants still have certain legal rights. If the assured shorthold tenancy still has a few months to run you can’t turf them out for a quick sale. And what if your tenant is in love with the place and just doesn’t really want to move on?
You may be hard pressed to find a buyer who is willing to exchange contracts if your tenant is still in place, especially if that tenant has shown unwillingness to cooperate, and is being awkward.
Many potential investor-buyers will negotiate hard on price if you are victim to the circumstances described above. Where does that leave you?
If you have a tenanted property portfolio that you would like to sell at a fair price, contact us.
We buy tenanted property portfolios. We will work with you and your existing tenants to resolve any challenges and difficulties you are facing right now.
Unlike other buyers, we do not demand vacant possession, and may even be able to structure our purchase to achieve the price you want.
If you have reached the stage where you want to sell a rental portfolio, but have questions about how best to do that – stop searching. Don’t become a victim to the rental property dilemma. Just contact us and let us do the rest. We buy tenanted property portfolios – painlessly.