As a landlord, when you decide to sell a rental property, there are several important factors that must be considered. They will dictate the process of the sale and ultimately the financial gain to you as the landlord seller.
In this guide, we will take a closer look at each of the main considerations so that you can get the best return when it comes to selling your investment property in Ireland. This guide can also help you to avoid conflict that could either make a sale very difficult or even scuttle one altogether.
Will you be offering the property for sale with vacant possession (nobody living there) or with tenants in occupation (someone living there)
If your property is vacant, then it has a much higher chance of being sold to any sort of buyer – investor or owner occupier. On the other hand, if you have a tenant living there, then the sale will usually be restricted to investors only.
Should you have a tenancy in place that began before June 2022, as a landlord you have the option to give notice to terminate the tenancy and sell with vacant possession. It’s really important to recognise the tenant’s entitlements regarding the length of notice, refund of the deposit, and access for viewings and inspections. There are clear rules concerning termination of tenancy and these are available on the www.rtb.ie website.
In the case of selling your investment property with a tenant in occupancy, the details concerning the tenancy, deposit, and rental history will be needed by the selling agent. Make sure to get these details to your agent as early as possible as a way of spotting any issues that might interrupt your plans. Clear and open communication is going to be critical where a tenant remains within your property.
Where there is an existing mortgage on your investment, then you as a landlord should request the Property Deeds from the bank or building society, through your solicitor, again as early as possible in the process.
We recommend that this be done as soon as a landlord decides to sell. This significantly reduces the overall time between putting your property on the market and closing a sale for you.
If your property is currently worth more than the purchase price, you will be subject to Capital Gains Tax, after the cost of sale and some other specific costs that are allowable e.g., capital expenditure.
Has your property been extended or has the use been changed? Then we recommend you get a compliance cert at the outset, as this will be requested by the purchaser’s solicitor.
Paperwork is obviously important during the process of selling your investment property in Ireland. By having a complete history of the property ready and with your solicitor, you can avoid unnecessary delays to completing a successful sale.
Own an investment property as part of an apartment development? Then check that your annual charges are paid up to date and that the Owner Management Co is compliant. Talk with the company and make sure its annual returns are also up to date.
All property offered for sale in Ireland or for rent must have a valid BER Certificate. Ask your agent for details of local BER assessors. (If you need a BER Cert in Louth then Click Here)
An ex-rental property that is being sold with vacant possession often warrants some level of maintenance or content clearance before putting it on the market. Again, ask your agent for advice and, if appropriate, consider home staging or repainting to maximise the property’s performance on the market. If you are selling the property with the tenant in occupation, it is worth checking whether repairs and safety checks are up to date. Otherwise, a sale could fall through if the property is found to require significant work to bring it up to standards.
Ask yourself these questions. They can help you to focus on the steps you might need to take to help sell the property efficiently and at top market price.
Need more advice when it comes to selling your investment property in Louth, then let the team in Michael Lavelle Estate Agents know. Our property experts are on hand to guide you through the process and find a buyer for your property when it comes time to sell.
For more simply call (042) 933 2482 or leave your details below so a team member can contact you. Alternatively, click to grab your Free Property Valuation Here to get your property sales process underway from today.