Guide to selling an investment property
Selling an investment property isn’t quite the same as selling your home. You still want to get the best price possible, but there are a few extra factors to think about – like taxes, timing the market just right, and making sure the sale lines up with your wider financial goals.
Whether you’re cashing out to reinvest somewhere else or looking to lighten your landlord duties, having a clear plan can save you stress and help you walk away with more in your pocket. In this guide, Jim Demitriou, national valuer at SDL Property Auctions, will break down what you need to know – from managing tenants, to getting your property ready for buyers, and handling the paperwork that comes with closing the deal.
Types of investment properties
An investment property is a piece of real estate which has been purchased for the primary purpose of generating a profit, rather than for use as the residential home of the buyer. There are many different types of investment properties, including:
Buy-to-let
Buy-to-let properties are residential real estate purchased with the intention of renting them out to tenants, providing landlords with both a regular income stream and potential capital growth. These properties can be sold vacant or with a tenant in-situ, depending on the property’s current circumstances, buyer demand and seller preference.
Holiday let
Similar to buy-to-lets, holiday lets are rented out by the owner to generate income. However, due to tenancy laws for this property type, rental contracts are much shorter, with guests usually paying premium nightly or weekly rates, especially in popular tourist destinations or coastal and countryside locations. This allows holiday lets to generate higher rental income, even without a 100% occupancy rate.
Commercial properties
Commercial properties are real estate assets used for business purposes, such as offices, retail units, warehouses, and industrial spaces. Unlike residential buy-to-let or holiday lets, commercial property investments are typically leased to businesses on longer-term contracts, which can provide investors with more stable and predictable rental income. Some business owners will opt to purchase a commercial property for their own use too, giving them greater security, removing rental fees (even when replaced with financing repayments), and building capital growth.
Development opportunities
Development opportunity properties are sites or buildings purchased with the aim of adding value through renovation, conversion, or new construction. Whether land or a derelict property ideal for revitalisation, developers flock to auctions to find opportunities that could turn a profit, with even those without pre-existing planning permission often performing well under the hammer.
Renovated properties
Renovated properties are homes or buildings that have been upgraded, modernised, or fully refurbished to improve their condition, appeal, and market value. For investors, buying and renovating a property can be a strategic way to increase rental income or achieve a higher resale price.
Sell your investment property with SDL Property Auctions
Selling an investment property can be a rewarding step, whether you’re cashing in on capital growth, reshaping your portfolio, or simply moving on to your next opportunity. The key to a successful sale lies in preparation – understanding your target buyers, ensuring the property is compliant, and highlighting its potential.
Whether you’re selling a buy-to-let, a holiday let, a commercial property, or a development opportunity, taking the time to plan your exit strategy will help you maximise value and achieve a smoother transaction.
If you’re ready to take the next step and sell your investment property, we’ll help you get things into place by providing you with a free, no-obligation property valuation.
Click here to request your free no obligation auction appraisal
