What if you need to offload your HMO property? What is it that you can do to make the most out of that sale? Here are some simple tips to help earn as much as you can from selling your HMO.
Keep it well maintained and make any necessary repairs
The same rules apply. Unless you are selling it as a fixer-upper, you will need to make sure that the building is up to standard and that it is very well maintained. Buyers are always looking for a reason or another to knock down the asking price. Finding any sign of disrepair is one of the best reasons why they would ask for a hefty discount sighting subsequent repair costs as an excuse. By making sure your HMO is in tip-top shape, you will be giving yourself the best chance to snag the best possible price.
Maintain a high occupancy rate
Your HMO will attract the most lucrative buyers if they see one of two things:
- It has great potential for attracting good tenants
- It already has good tenants who just so happen to be long-term renters
Nobody wants to buy a HMO that shows no promise. If they can see the potential in the kind of clientele your property can attract with the right marketing, then they will be willing to pay good money for it. They will, however, be willing to pay even better sums should they see that the building already has a high occupancy rate. They will literally be buying a cash cow.
Be up to code
If there is one thing landlords do not like dealing with, it is taxes and local Government building codes and standards. If your potential buyer even thinks that they are going to have to deal with the local city council because your building isn’t up to date as far as the building and HMO codes are concerned, then they are more likely to slash down their offer or even worse, rethink the whole thing. Make sure everything is well taken care of and that you have a clear track record as far as the taxes associated with that property are concerned.
Be Willing To Look At Alternative Payment Options
Sometimes, your property can be the perfect property for the buyer. The only hindrance to the deal is the price. Let’s face it, HMO properties are on the higher end of the spectrum, and some investors might not have enough cash on hand to secure financing.
If you find your prospects all haggling for a lower price, it may be best to offer alternative solutions to prevent you from selling at a loss. The alternative to dropping the price is by making the terms of payment more affordable for the buyer.
The concept is similar to the gigantic 4KTVs sold at your electronics store. You may choose to buy the telly using cash, or you may opt to pay in instalment. Most people pay in instalment, even if they end up paying more in the long run. Why? Because paying in little increments is far more convenient than paying the entire £2000 today.
The same concept can be done in real estate through flexible payment terms. And these types of terms are becoming more and more popular thanks to investors like Glenn Armstrong, Reena Malra, Simon Zutshi and Rick Otton. Be sure to check them out if you’re at risk of selling at a loss.