7th
Jan 2021
An estate agency north of the border has introduced a new modus operandi in selling housing stock as it is now selling tenanted properties to other landlords which achieved a record year.
The agency which operates across Scotland specialises in selling properties with tenants living in them and has just finished its third year of trading with its annual revenue up by 153% from its previous year.
It has also confirmed that over the past year there was a major rise in listed properties.
The two founders Chris Wood and Ross MacDonald say the increases shows how lucrative their new addition of selling and buying tenanted properties can be.
Their plans for 2021 includes negotiating 60 sales for their landlord clients which will be 100% higher than the previous year’s sales of 30, and that there are already extremely positive signs for the oncoming year.
The agency admits that the various evictions bans has helped increase the new types of sales., with landlords having to give tenants a six months notice period to vacate the property remaining in place until the end of March.
A spokesperson for the agency said: “One of the consequences of the Covid-19 pandemic has been that it has created greater interest and a wider realisation in the financial and logistical advantages that selling and buying properties with tenants in situ brings.
“However, even before that, we were seeing measurable increased recognition of these benefits - particularly the fact that this means no break in rental income for either party. Certainly though, circumstances have undoubtedly accelerated this awakening.”
Agents usually suggest that buy to let properties should be empty when being put up for sale; however the Edinburgh based agency only sells buy-to-let properties landlord to landlord with the tenants being able to stay in the property after a sale is completed.
The sales director says: “In the current circumstances, the only way a landlord of a presently occupied property can quickly take that to market is with the tenant remaining in place. This also means that they do not lose rental income as the property sits empty.
“For investors buying the right properties at the right prices, the confidence of knowing you will immediately start to collect rent is a huge positive. This maximises cash-flow on both sides of the transaction and keeps costs down.
“For tenants, our model of working removes disruption because it keeps them in their homes, despite their landlord’s decision to sell.”
The agency says that being able to use the latest 3D technology means that BTL investors can view a property without having to make a visit which helps combat the travelling restrictions during lockdown whilst showing how tenants keep the property.
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