Remember that first impressions last. Small improvements can make a big difference to the overall appeal of a property

Getting Your Property Ready For Sale

Checklist

  • Touch up painting
  • Replace any light bulbs
  • Tidy up gardens and hedges
  • Clear out managers unit and storage spaces
  • Get your accountant to prepare an up-to-date P&L for sale
  • Top up the lease or management right agreements

Presentation

While you are selling a business, it is always wise to remember that first impressions last. How a property presents is very important. Take the time to step back and see the property through clear eyes. Small improvements can make a big difference to the overall appeal of a property.

Take the time to touch up any chipped paint, replace blown light bulbs and tidy up the gardens that surround the property. De-clutter the managers unit and office so they present in the best possible light.

Getting the money right

The clearer a profit and loss statement (P&L) is to understand, the more comfortable a purchaser will be with the information they are being provided. We would strongly recommend getting a specialist accountant to prepare a profit and loss statement for sale purposes prior to taking you management rights or motet to the market.

If problems crop up during the income verification process, it is more often than not due to the fact that the seller has not had a P&L prepared by an specialist accounant. If a purchaser's accountant highlights discrepancies, it is difficult to argue the toss without a professionally verified P&L to support the position. Even worse, we have come across vendors who have prepared their own figures and have underestimated the net income.

Topping Up

It is a fact that short agreements are harder to sell and achieve lower sale prices. Therefore we would recommend overcoming that obstacle before going to market.

For management rights, a motion can be placed on the agenda of the AGM (or EGM) to top the agreements up by a maximum of 5 years at a time. For management on standard modules, we would recommend ensuring that the agreements are topped up to the 10 year maximum in order to achieve the best possible sale price. For management rights on accomodation modules (25 year maximum) we would recommend ensuring that there are at least 15 years remaining in order to ensure the maximum sale price.

For motels, leaseholds start to devalue once the remaining duration on the lease dips below 20 years. If you are a motel lessee with a low tenure remaining on your lease, approach you landlord to see if you can extend the lease. In this instance, extra years may be purchased from the landord...something worth considering when the added value is taken into account.