Market conditions offer perfect opportunity for landlords to realign portfolios

According to Townends estate agents, whilst those who have built manageable buy-to-let portfolios are reaping the benefits of low interest rates and high yields, others are assessing the performance and cohesiveness of their buy-to-let investments in a bid to realign their portfolios.

Caroline Kavanagh, Group Lettings Director of Townends estate agents comments:

“We are experiencing instances of landlords looking to off load properties and opting to do so by selling to other investors with their existing tenant in situ. 

"Whilst this may seem counterintuitive at first glance, savvy landlords are actually using the current climate to adjust and restructure their portfolios, and often selling to another investor can be the quickest and most cost effective way to do so.”

Other investors will be attracted by the proven yield and that their tenanted buy-to-let will be earning money from day one. The landlord selling also benefits from no void period and can continue earning rent right through until the property is sold.

Caroline says that reasons for landlords looking to do this can be as simple as wanting to realign their portfolio where perhaps one or two properties do not ‘fit’ with the other properties.  By example, selling off one Victorian terraced property and replacing with a purpose built apartment in the same location as the rest of a portfolio.

She says:

“But of course, it is not always about off-loading to another investor. Landlords are looking at what is most letable in the market and, where they can, re-shaping their portfolios in accordance with supply and demand. 

“This could mean selling off a larger property more suited to say a family, in favour of two smaller ones which have wider appeal and combined offer a greater rental yield.

"Whatever the reason, it seems landlords and investors with available funds are in the driving seat and the most likely to profit from current market conditions.”