I Have Never Used Landlord Trader Before...
Who uses Landlord Trader?
The website was developed primarily for Landlords either looking to buy or sell investment property. You will find property listings for traditional buy to let investment property, the bread and butter of most landlords. However, the site is also frequently used by lettings agents (on behalf of landlords) and estate agents from time to time.
First and foremost, Landlord Trader is a residential investment property exchange. Landlord Trader provides a medium for Landlords to cost effectively buy and sell investment properties by providing access to an investor base that places value on buying properties with installed tenants.
Selling into such a market place reduces the risk of having to accept a lower price than is otherwise achievable if selling a tenanted property into the owner-occupier market. This is because the owner-occupier market typically demands properties to be sold with vacant possession and as such places negative value on installed tenants. This is the converse to the mind-set of landlords.
Sellers are expected to enter the correct and most up-to-date information onto the website. Landlord Trader does not verify information on the property for sale, nor make recommendations or suggestions. Landlord Trader relies upon the honesty and integrity of the user base; consequently heavy penalties / restrictions will be applied to those that do not act in good faith (such as a likely ban from the site).
Additionally, there is an onus upon buyers of properties listed on the site to undertake their own preliminary research. This research is likely to take the form of comparing the property details to similar properties with other agents in order to make themselves comfortable with the property's “asking price” as well as the “expected rental income”.
After a potential purchaser is comfortable with the particulars of the property listing in question, they may submit an offer. This offer is submitted online and may either be accepted or rejected. If rejected, the process will continue until agreement is reached or until one party pulls out.
At such a point that an agreement is reached, the purchaser and vendor are responsible for notifying their solicitors of the sale. The acceptance of an offer on Landlord Trader is not binding as contracts have not been exchanged (unlike when an agreement is reached in a property auction and the contracts are exchanged as the hammer goes down), but a reversal of decision must be for a particularly good reason otherwise Landlord Trader will impose penalties / restrictions (a likely ban from the site)
The purchaser at this point will be able to have a survey organised, liaising either through Landlord Trader or solicitors for contact details so as to organise times etc. Landlord Trader is perfectly happy to mediate should any issues arise, please don‘t hesitate to contact us.
The purchaser is also advised to undertake the relevant searches at this point.
How do I buy properties through Landlord Trader?
Using the property search function, any potential investor will be able to find properties of interest. Once a property of interest has been identified, it is advised that a user creates their own account “My Account”, if the user has not already done this.
At this point, the user can either make an offer on the property or add the property to their wish list “Add to wish list”. Using the “Wish list” in a user’s account, the user can follow the properties of interest more easily and then does not have to keep using the property search function to find the particular property of interest. If the user has made an offer on the property, the property will automatically be added to the user’s personal account (“My Account“), which will allow you to track the status of your offers, status of the property (e.g. for sale, sold subject to contract and no longer for sale) and any responses to questions that the user has posed to the vendor.
Typical completion is 6-8 weeks after agreement to buy. Landlord Trader promotes that completion should normally take no longer than 8 weeks; if it does, it could result in pulling of a sale. Only in extenuating circumstances should completion take longer than 8 weeks, however the vendor must be made aware of these from the outset. Should any extenuating circumstances arise at any point after the process has gone into solicitors hands, Landlord Trader encourages either the purchaser or the vendor to let the other side know at the earliest point possible.
What if I want to ask additional questions over and above what is posted on the website?
The prospective purchaser will be able to use the “Ask the vendor a question” prompt at the end of the property particulars in order to be better informed when analysing the property. Landlord Trader cannot guarantee the timeframe within which questions will be answered but will endeavour to speed up the process where necessary, using its own tracking system. Potential investors will be able to track the response to questions using their account “Wishlist”. If the property had not already been entered into the users wish list, then by submitting the question it will have automatically been done by Landlord Trader. Only registered users of Landlord Trader can use this facility.
Similarly, vendors will be notified as and when questions are posed through both their account as well as by email, alerting them to the receipt of a question that needs to be answered. Vendors should endeavour to answer questions as soon as possible in order to keep any the momentum of the sales process.
Can I view the property?
In the investment community, it is generally accepted that internal viewings are NOT as easy as in the owner-occupier market. Tenants will not like to be disturbed and the landlord will not wish to disturb them unnecessarily and risk losing them. External viewings are recommended prior an agreement being reached.
After an agreement has been reached, viewings are to be coordinated between the buyer and seller. Alternatively, viewings / surveys can be coordinated through the solicitors.
How do I sell properties through Landlord Trader?
Any new vendor to the site, whether agent or landlord must register their details in the “My Account” section.
After the details have been registered you will receive email confirmation of your password and details.
Click the tab which is most appropriate to your property (Tenanted Trader, Off Plan Trader or Overseas Trader) and click either Sell Tenanted, Sell Off Plan or Sell Overseas on the left hand side, depending on which area you are in. Here you will be able to click a link to upload the details of your property for sale, but should you have any problems, please don’t hesitate to contact Landlord Trader directly.
Once your property has been uploaded, other people will be able to view the property details instantly through using the property search function. Landlord Trader will email you when offers are made and you will be able to track the offers through your personal account.
It is requested that vendors respond as soon as possible in order to keep all parties interested and maximum efficiency is created. Upon receiving an offer the parties will have 7 working days to accept or reject otherwise the offer will no longer be valid (the offer will have expired). The vendor can still choose to accept the an offer after the expiry date though it will be up to the purchaser to choose whether or not to accept.
How do I know what the value of the property I am looking to sell is?
Some Landlords keep a close track of property prices in the areas where their properties are situated and therefore will know the approximate value of the property that they are looking to sell.
The approximate property value can be easily researched through looking for comparable properties in the area. Comparable properties can be found either by looking in local newspapers, estate agents windows, talking with estate agents or looking on property websites.
Alternatively, you can ask an estate agent to come and value your property. Most estate agents will do this free of charge, keen that they will get your business after doing this. It is often advisable to get more than one valuation because it can range from agent to agent.
Can I put any property on Landlord Trader?
Yes, provided it is an investment property. The investment must be listed in the correct area of Landlord Trader, either Tenanted Trader, Offplan Trader or Overseas Trader.
What if I have never invested in property before?
If you are a novice Landlord or looking to dip your toe into the market, it is advisable to properly understand the work involved and risks associated with residential property investment.
There are a number of options:
How can I do my own research on a property?
The 3 main areas for preliminary due diligence for any landlord looking to purchase a property tend to be the following:
Only external viewing is only allowed at this stage, but it may provide a potential purchaser with a certain level of comfort. Some landlords have commented in the past that just seeing the property gives them a level comfort.
After preliminary due diligence has been carried out, the potential purchaser can put in an offer. If accepted, the next stage is the detailed due diligence carried out by professionals (solicitors and surveyors).
The purchaser’s solicitor will do a number of things including: carrying out searches (water, sewage etc) and checking the title deeds. It is also advisable for the purchaser to have a surveyor carry out a survey on the property. The survey will comment on the property value and the condition of the property.
Once all due diligence has been carried out, the purchaser will be rest assured that the property is unlikely to harbour any nasty surprises.
How does Landlord Trader compare to using estate agents?
Landlord Trader is an exchange and not an agency. Traditional estate agents target the owner occupier market, which typically places negative value on tenants. Conversely, Landlord Trader provides access to the Landlord community, which places significant extra value on well let property.
Please note that Landlord Trader does not verify information or indeed make recommendations or suggestions. Landlord Trader relies, in part, upon the honesty and integrity of the user base; consequently heavy penalties / restrictions, such as a site ban, will be applied to those that do not act in good faith.
Both buyers and sellers are expected to undertake to do their own due diligence. External viewings only are allowed.
How does Landlord Trader compare to using property sourcing companies?
Property sourcing companies tend to be highly regional and extremely expensive.
Many sourcing companies will happily facilitate / broker the sale and purchase of a property or portfolio of properties between two investors but taking large fees in the process. Typically, the agent will charge fees to both the buyer (finder's fee) and the seller (agency selling fees); fees are often over £2,500 for both parties.
In the example of a property with a value of £28,000, the sourcing company has made a £5,000 fee, which equates to 18% of property value fee.
Landlord Trader does not condone charging such enormous fees for brokering lower value property transactions and for this reason believes that Landlord Trader is providing a vital solution to the landlord market.
On the other hand, Landlord Trader provides a low cost service that reaches Landlords across the country and beyond (Landlords are becoming increasingly trans regional, no longer just targeting single towns and regions).
How does Landlord Trader compare to buying in an auction?
Property auctions are conducted in such a way that the exchange of contracts is effectively carried out "on the hammer".
This can involve a significant risk to the buyer as there is little room for manoeuvre if the property does not turn out to be as advertised.
The process of buying a property through Landlord Trader, although relying on the good behaviour of its members, extends the same protection to the buyer as if the purchase had been conducted through an estate agent (without the same fees of course!).
If there is a good reason (usually shown up in a surveyors report) for the buyer not to be satisfied that the property is as advertised, he or she may still withdraw. And contracts have not been exchanged, there are no such penalties.
How much does it cost?
If you want to make your listing more attractive, you can easily add a photo gallery for an extra £10 and an attachment for a further £10. In other words, NO listing will cost you more than £49.99. Compare that to selling through an estate agent!
Vendors agree to pay the Success-on-Sale fee to Landlord Trader if a willing purchaser is introduced via Landlord Trader.
This fee does not alter whether the vendor uses other means of advertising or agency to sell their property concurrently to using Landlord Trader.
Landlord Trader’s Success-on-Sale fee is inclusive of all fees and expenses, except where you specifically authorise Landlord Trader to carry out additional services, for example, consultancy or portfolio selling services. The Success-on-Sale fee is payable by the vendor’s solicitors on completion of the sale out of the sale proceeds.
Intervention fee
If Landlord Trader helps any party make contact with another or is involved in any way in a sale, an additional fee of £100 is payable on completion to the Success-on-Sale fee and Listing fee. Involvement in a sale is defined as Landlord Trader stimulating contact between buyer and seller at the request of either party.
How do I know that the individual property details on Landlord Trader are correct?
Unfortunately, there is no certainty as Landlord Trader doesn’t verify the information posted on the site by other users and for this reason, Landlord Trader advises other users to undertake their own due diligence on properties prior to agreeing a purchase.
However, even after agreeing to purchase a property, normal due diligence by the purchaser will be undertaken (survey, searches etc.) and should any information be found to be incorrect the purchaser may of course pull out of the proposed transaction.
Should the potential purchaser pull out of a transaction due to misleading information being provided, Landlord Trader requests to be notified. Landlord Trader will then seek to take the necessary actions against the vendor; a likely ban from the site.
It must be noted that the risk of the finding out that the vendor has provided misleading information is in fact often a great deal less than when buying at auction. When purchasing property at auction, the purchase is binding the moment the hammer goes down (contracts are exchanged) and so pulling out of the transaction is far more difficult when compared to purchasing an investment property using Landlord Trader. Only agreement has been and this is, of course, subject to contract. It is more a kin to agreeing to purchase a property through an estate agent. While it is often inconvenient when a purchaser or vendor pulls out, it should be noted that it does indeed happen and little cost is incurred during the process.
However, Landlord Trader reserves the right to act in whatever way is deemed appropriate for users of the site that have not acted in good faith.
What happens if sellers provide misinformation?
As mentioned previously, should the potential purchaser wish to pull out of a transaction due to misleading information being provided, it is entirely understandable. Landlord Trader will seek to take the necessary actions against the vendor for providing misleading information; resulting in a likely ban from the site.
Landlord Trader reserves the right to act in whatever way is deemed appropriate for users of the site that have not acted in good faith.
What happens if buyers pull out?
In a similar way to sellers providing misleading information, buyer’s that pull out for acting in an unethical way will face a likely ban from the website. Landlord Trader reserves the right for judging whether or not a user should be banned from the site.
What if I have read all the information and still need help?
Landlord Trader aims to make the site as user friendly and clear as possible however, if you have any questions left unanswered or indeed suggestions as to how we may be able to improve the site, please don’t hesitate to contact us.
How does Landlord Trader work?
How do I buy properties through Landlord Trader?
What if I want to ask additional questions over and above what is posted on the website?
Can I view the property?
How do I sell properties through Landlord Trader?
As a seller, how do I know what the value of the property I am looking to sell is?
Can I put any property on Landlord Trader?
What if I have never invested in property before?
How can I do my own thorough research on a property prior to submitting an offer (e.g. property prices, expected rental income, area etc)?
How does Landlord Trader compare to using estate agents?
How does Landlord Trader compare to using property sourcing companies?
How does Landlord Trader compare to buying in an auction?
How much does Landlord Trader cost?
How do I know that the individual property details on Landlord Trader are correct?
What happens if sellers provide misinformation?
What happens if buyers pull out?
What if I have read all the information and still have need help?
Who uses Landlord Trader?
How does Landlord Trader work?
Listings will expire after 4 months to keep the stock current for our investors.
