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 jeopardize the sale entirely
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 will appeal to a wider pool of buyers – 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.
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.
The notice period that you are required to give to tenants varies depending on how long they have been your tenants at the property that you are selling. Note that Day 1 of the notice period starts the day after the notice of termination is issued. The RTB revised the periods of notice for tenants most recently on July 6th 2022 as below.
A landlord must issue a notice of termination. There is a strict protocol for issuing notice of termination
For a termination notice to be valid it must include the following:
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.
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 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.
If you want to maximize the value of your property, it’s important to consider your target buyer. For instance, if your property is located in a desirable residential area and is likely to attract families, it’s worth investing in improvements that appeal to their emotions. This could involve ensuring the property is structurally sound and enhancing its appearance through staging.
On the other hand, if your target buyer is likely to be investors, you may want to think carefully about spending money on improvements, as they tend to make decisions based on practical considerations rather than emotions. However, there are certain things that investors will look for, such as safety features, compliance with fire regulations, and potential rental income.
In addition to considering your target buyer, there are other steps you can take to increase the value of your property. For instance, decluttering can help create a sense of spaciousness, while improving the property’s curb appeal through cleaning and painting can enhance its overall appearance. A well-maintained garden can also add value by creating an additional living space.
When it comes to the property’s layout, functional areas that meet the needs of the target buyer can make a big difference. Finally, it’s important to identify any repairs or maintenance issues that could be a turn-off for buyers and address them before putting the property on the market. By taking these steps, you can maximize the value of your property and appeal to your target buyer.
Need more advice when it comes to selling your investment property in Co. Cork then let the team in DNG Galvin 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 023 8844958 . Alternatively, click to grab your Free Property Valuation Here to get your property sales process underway from today