As costs rise, regulations tighten and the returns on rental properties get squeezed more and more every year, it’s no surprise that so many landlords are cashing in and selling their rental properties.
If you’re a landlord in this position, you’ll probably be wondering what is the best way to sell a rental property and who are the best rental property buyers? In this article we’ll take a look at why now is the time to sell investment property, and why selling rental properties for cash could help you take your profits and walk away, ready to retire or move on to your next exciting investment opportunity.
Table of Contents
Why might you consider selling your rental property for cash?
Things have been getting tougher for landlords for some time now, with rising costs and new legislation eating away at profits. There are a number of reasons why the rental sector is not as simple, or as profitable, as it once was, including:
- Minimum Energy Efficiency Standards – since 2020, landlords have not been able to rent out properties with an EPC rating below E. Upgrading involves significant investment, especially in older properties, to bring them up to scratch.
- Rising interest rates – although interest rates are starting to nudge down, they are still significantly higher than the historic lows pre-2022, when most investors first took out their buy to let mortgages. This makes mortgage payments higher and profit margins lower than expected.
- The Renters’ Rights Bill – this replaces the planned Renters Reform Bill and goes much further in its reach and regulations. Currently clearing the final hurdles of the parliamentary process as we write, the bill is expected to come into force in early summer 2025. The new bill removes fixed term assured tenancies, abolishes section 21 evictions, limits rent increases and enshrines Decent Homes Standards into law. All of this will make life harder, and less profitable, for private landlords.
- High inflation – rising costs across the board means everything from repairs to redecoration, maintenance to management fees have gone up, once again reducing the margins on rental properties
- Lower capital gains tax thresholds – the amount you can make before you become liable for capital gains tax dropped from £12,300 to just £6,000 in 2023 and halved again to just £3,000 in 2024. This makes rental properties even less attractive as an investment.
- Taking profits – figures from HM Land Registry and the Office for National Statistics show that the average property in England and Wales has increased in value by 41% since 2010, adding over £93,000 to the average property price. Many landlords are now tempted to take their profits in case the market turns and prices drop away again.
Landlords are leaving in their droves
If all of this makes you want to cash in and walk away, then you’re not alone. The National Residential Landlord Association’s Landlord Confidence Index shows that in quarter 4 2024, 35.3% of members were less confident in the sector and 24.4% were much less confident.
The same survey found that over the last 12 months, 26% of landlords had sold properties – a record figure for the survey – with just 8% increasing their portfolio.
The simplest way to sell
While it is possible to sell a rental property portfolio individually, via local estate agents, this can be a long and tiresome process. As experienced rental property buyers, cash house buyers can take your whole portfolio as a job lot, giving you a smooth, swift sale so you can book that cruise, plan that retirement or invest in the next big thing.
To see how much you could get by selling rental property quickly for cash, click the button below.
Fees to be aware of when selling any rental property
Selling rental properties to a cash buyer may not get you the full market value for your portfolio, but it will give you a fast, fuss-free exit from the sector before all your profits are eaten away by new costs and new legislation.
A cash house buyer will generally offer around 80% of the market value when you’re selling rental properties. This might sound like you are taking a bit of a hit, but you should bear in mind that there are no selling fees or charges, you will not have to pay estate agent commission, and you probably won’t have to pay legal fees either.
What’s more, with 26% of landlords selling and only 8% buying, it is a buyers’ market right now. That means that you’re unlikely to get full market value for your portfolio anyway, even if you are prepared to wait up to six months to complete your sale.
Remember, your portfolio will have increased in value by over 40% since 2010, so you still stand to make a healthy profit selling rental properties for cash to a home buying company, even with their lower offers.
What to look for in a cash buyer when selling your property for cash
Buying rental property is not as simple and straightforward as buying a standard residential home. There can be complex issues regarding tenants, and it can also be harder to secure finance for the purchase of a rental property. When it comes to selling investment property, there are a number of things you should be looking for in a cash buyer, including:
- Experience as rental property buyers – make sure your cash buyer has handled rental property before and is not just a domestic house buyer. Don’t be afraid to ask to speak to previous customers who have used the company to sell rental property.
- Cash in hand to buy – rental property finance is not as easy to come by as standard property finance, so make sure your rental property buyers have cash in hand to complete the purchase without delays. Again, don’t be afraid to ask for proof of funds
- The scale to buy your whole portfolio – smaller cash house buyers may not be in a position to purchase your whole portfolio as a job lot. Look for established rental property buyers who operate at scale.
- Prompt, professional service – you are paying a premium when selling rental properties quickly for cash, so you should expect premium service to match. Take the time to find a cash buyer you feel comfortable working with and who understands what you need out of the deal.
- Never sign a contract – contracts will never be worded in your favour and will only ever benefit the buyer, so if you’re asked to sign a contract, walk away.
To find out what a reputable rental property buyer would pay for properties like yours, click on the cash offer generator below. There’s no obligation to go ahead and you don’t have to give any personal details to get your free quote.
When to start looking for a cash buyer?
Chances are, if you’re reading this article, then you already know that it’s time to start looking at selling your rental property portfolio.
Perhaps you’re thinking of retiring and buying that place in the sun you’ve been working so hard for. Perhaps you’ve had enough of the mounting costs and regulations that have made the rental market so much harder in recent years.
Perhaps you just think that it’s time to take your profits with the future feeling so uncertain in an era where Trump and tariffs are set to disrupt the economy on a global scale.
Whatever the reason you want to sell your rental property portfolio, you could be as little as fourteen days away from completing the sale and having the money in the bank.
The rental market is getting tougher all the time, so the time to start looking for a cash buyer is right now. Check out the property Sale Watchdog independent cash house buyer reviews to find the best cash housebuyer (UK) for you and learn more about the cash house buying sector in our informative property selling guides.
Expert Insight from Kelvin Elliott
Kelvin Elliott, founder and buying director of myhomebuyers.co.uk explains why a cash buyer makes so much sense when you’re selling rental property:
“We have seen increasing numbers of landlords selling up and leaving the sector in recent years, as operating conditions get more testing and rental properties have become less profitable. Once they’ve decided to leave the rental sector, most landlords just want to get out as quickly and cleanly as possible, so they can move on.
Selling to a cash buyer means you can sell your rental property portfolio quickly and easily in one go, and get the cash in your bank in as little as fourteen days, instead of dragging through multiple conventional sales that take months and months to complete.”
Can I sell my rental properties fast for cash?
Yes, you can. Many cash buyers will be happy to buy rental properties, with or without tenants, and can complete the sale in as little as fourteen days.
Will a cash buyer buy my whole rental portfolio in one go?
Yes. By choosing one of the larger cash homebuyers you will be able to sell a rental property portfolio in one go, saving you the time-consuming work and the endless stress of selling each property separately.
Why should I sell investment property to a cash buyer?
Once you have decided to leave the rental sector, a cash buyer can help you exit in as little as fourteen days, rather than waiting six months or more to sell, with all the extra costs and hassle that goes with it. Rental property buyers offer a quick and easy exit and give you access to your investment fast.
Why is now a good time to sell a rental property?
New laws on tenancies, new rules on energy efficiency, and ever rising costs for maintenance and management mean that the rental sector no longer delivers the return on investment that it once did. 26% of landlords have reduced their portfolio in the last year, showing that now is the time to sell.
Can any cash buyer buy a rental property?
Yes, cash buyers will buy any home in any condition, although you will find some specialise in rental properties more than others. It can actually be easier to sell a rental property to a cash buyer than it is to find a private buyer. Cash house buyers understand the property market and the rental sector, and they know how to find buyers for tenanted properties.
How do I sell a rental property fast?
The first step to selling rental properties quickly for cash is to see how much your portfolio could be worth by clicking the free cash offer calculator button below. If that figure works for you then you can find a reputable cash buyer using our reviews or we can connect you directly to a recommended buyer that we’ve carefully vetted on your behalf.
Conclusion
More than a quarter of landlords are currently offloading rental property from their portfolio, or even leaving the sector altogether. If you’re one of these landlords, then a quick cash sale could help you sell rental property simpler and sooner, with none of the stress or delays of a traditional sale.
If you’ve made the choice to sell up and move on, don’t wait around watching your investments shrink and your costs rise. Selling rental properties quickly for cash could be the deal you have been waiting for to fund your retirement, or free up your cash for the next big adventure.