Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlords increasingly seek help exiting rental businesses, says Property118
Mark Alexander of Property118 reports that after nearly four decades helping landlords build wealth through rental property, most of his time is now spent helping them work out how to enjoy it. Over the last two years, around 90% of his time has gone on helping landlords dismantle their businesses, protect and enjoy their wealth, reduce risk and prepare a legacy their children actually want to inherit.
What landlords are asking
According to the article, landlords are arriving with questions about selling, retirement and succession because those are the things they now want help with. They want to know which properties to sell first and why, understand their Capital Gains Tax position, establish what will remain after mortgages and costs, and work out where to park the money afterwards. They also want to know what could replace the rental income and whether they can afford to stop doing so much.
Alexander also notes that landlords want examples of how others have reduced their risks and responsibilities, organised their finances and decided what to keep, including how much time those landlords now spend with their families and what an ordinary week looks like after the transition.
The "invisible cage"
Alexander describes an "invisible cage" that keeps landlords in the rental business until the day they die, despite wanting to travel, spend more time with family and shed responsibility. He says the cage is usually a collection of questions that have never been brought together and properly answered: the tax might be substantial, the borrowing complicated, the income feels essential, the alternatives are unfamiliar and the family has never discussed any of it.
He contrasts this with friends he has made during more than 11 years of living abroad, many of whom have achieved financial and location independence. Among those who have made the transition, he writes, the refrain is the same: they should have done it sooner.
Relevance to agents and clerks
For letting agents and inventory clerks, the piece signals a shift in landlord priorities: more landlords are actively considering selling up, winding down portfolios and planning succession. Alexander says these conversations are handled by Property118's team of four consultants, of which he is one. He argues that a calculation of sale proceeds has more meaning when landlords know what they want those proceeds to make possible.
Source: Property118