Selling a long term rental - would you refurb?

[SouthWestisBest]

We have a rental property that we purchased back in 2001 near to our home. It was a probate property so when we got it - it was in a real bad state.

Anyway - we refurbished it and let it out. In the last 25 years we’ve had 3 tenants, the current tenant has lived there since 2009 and is now moving to be closer to family.

We’ve now decided the time is right for us to sell. We are mid 50s and plan to retire in the next 5 years.

The property has been maintained with decor by the current tenant and we replaced flooring about 10 years ago.

Boiler was replaced in 2019. House was re-wired in 2001 so is fine for now.

Kitchen and bathroom was also installed back in 2001 and is definitely showing signs of age - question is - would you replace this to increase the value of the house?

I’m thinking to give the place a lick of paint and freshen up - but price it to sell and the new owners can choose their new K&B without feeling guilty of ripping out new fittings!

What do similar sold properties in the area look like? If anything needing work sits on the market for months then you know what to do if you want to sell.

We priced one to sell but it hasn’t so now refurbing with new kitchen windows etc to sell. Hoping to recover costs.

I'm just about to give up on selling my former London flat, which has been rented out for the last few years after I moved in with DP. In that time it's had a new boiler and new double-glazed sash windows, but it's still got carpets rather than wooden floors, plus a 20-year-old kitchen. Can't afford to change either of those at the mo, so priced it low to sell, which it did - but the FTB got cold feet after a couple of months and pulled out.

After more than 40 viewings since then, the vast majority of feedback has been that people want somewhere that's already been done up, even if it's smaller/costs more/is in a less good location. So if you can afford to fully modernise it, I would!

If it didn"t sell before you are unlikely to "recover costs", people expect a certain standard included in the purchase price, and people are also wary of flats now for all sorts of reasons.

Can you get a selection of estate agents around and pick their brains?

DC has just bought a house from a LL getting out, and it had been freshly painted (in magnolia) but the kitchen and bathroom were serviceable if a little tired. They are about to replace the kitchen but will live with the bathroom for a while longer.

If everything is servicable price it to sell. Maybe freshen it up with a coat of neutral coloured paint (not bloody magnolia). If you put in a high end kitchen you will never recover the cost, put in a cheap one and the buyer will tear it out to fit what they like.

I sold my 3 bed rental last year.

Tenants left it grubby so I emulsioned every room white, cleaned the carpets, sterilized the tired bathroom & kitchen 🙄 and cleaned the windows.

Got the grass cut and weeded and tidied up front garden.

Rural setting, sold within a month on the market. Clearly I priced it right!

Sold a 2 bed rental flat last year, ( was Airbnb for its last year) and did nothing to it as really didn't want the hassle. Reduced price by 20% to get rid as both bathrooms and kitchen were from 2001 and offered any furniture/contents for free. They took it all. Completion day was just reading meters.

I think you have to try to work out your likely buyer. Is it likely to be someone who's happy to refurbish or someone likely to want a move in ready home. I suppose that depends on size, price, location, etc.

We tried to sell both DM's and MIL's bungalows after they died, just by clearing the clutter and smartening up a bit (both were fine and relatively good, liveable condition, not derelict wrecks), but neither sold and very few viewings.

In both cases (several years apart), after six months of no offers, we decided to renovate, new kitchens, new bathrooms, decoration throughout, new floor coverings, and both sold within a couple of months once "done up". Nothing special, both Howdens basic kitchens and basic generic bathrooms, neutral carpets and painting etc. Both sold to OAPs who wanted a "move into" with no interest at all in renovating.

Lots of people seem to want to just move in, and accept whatever is there in terms of kitchen and bathroom and neutral decor, as long as it's liveable. So maybe doing it up a bit would make it attractive to a different market of buyers??

I would say it depends on the property and the market you're aiming at - if it's a flat or similar property likely to be purchased by young professionals then I'd fix it up ready to move in. If it's more of a family home where the new owners are likely to want to make it their forever home and put their own stamp on things I'd leave it undone and price accordingly

Smart move.