Selling Your Rental Property? Here’s the Real Cash You’ll Walk Away With

Most landlords think the selling price of their rental property equals profit—but the truth is, the money you take home can look very different once all the hidden costs are factored in.

Here are some key things to watch out for when calculating your true net proceeds:

✅ Estate Agent Fees – These usually take a percentage of the selling price, and even small percentages can eat into your profit.

✅ Mortgage Redemption Costs – If you still have an outstanding mortgage, early repayment charges or exit fees may apply.

✅ Legal & Compliance Fees – From conveyancing to certificates (like EPC or gas safety), the paperwork adds up.

✅ Capital Gains Tax (CGT) – A big one for landlords. If the property has increased in value since you bought it, the tax man will want a share.

✅ Other Unexpected Costs – Think about repair work before listing, staging, or even higher utility bills while the property sits on the market.

Insight: Too often, landlords focus only on the “headline sale price.” But the smartest property investors run the numbers before they commit to selling. Sometimes, holding the property a little longer—or restructuring finances—can leave you better off in the long run.

Takeaway

If you’re planning to sell, don’t just look at the big number. Do a proper breakdown of costs to avoid surprises. And remember—your net proceeds (the cash in your hand) are what really matter for your next investment or financial goal.

(Inspired by discussions on Property118 about net proceeds calculators and landlord costs.)

Sources:

https://www.property118.com/net-proceeds-calculator-buy-to-let