Sale of rental property

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    Sale of rental property

    We wish to sell our rental property and I have some questions :-

    1) Is it best to give notice to tenant before putting property on the market?
    2) Where can I find a letter template giving notice to tenant?
    3) I believe we have to give 2 months notice, is this correct?
    4) Client has damaged front door, if this is not repaired prior to her moving out can we deduct the repair costs from her deposit?
    5) Anything else we need to be aware of?

    Many thanks

    #2
    1. Is property in England/Wales?
    2. Is the rent less than £2,083.33 pcm?
    3. What date (dd/mm/yy) did the last fixed term tenancy contract begin?
    4. What was the length of the fixed term (e.g. 6 months)?
    5. Did you take a deposit and is it protected in a scheme?

    Comment


      #3
      Originally posted by westminster View Post
      1. Is property in England/Wales?
        England
      2. Is the rent less than £2,083.33 pcm?
        Yes
      3. What date (dd/mm/yy) did the last fixed term tenancy contract begin?
        Not sure - is this relevant?
      4. What was the length of the fixed term (e.g. 6 months)?
        Short term - 6 months
      5. Did you take a deposit and is it protected in a scheme?
        Yes and Yes
      All answers above

      Comment


        #4
        It is relevant. If the tenant is still within the fixed term, you cannot remove them unilaterally. You will have to wait until the term expires.

        Comment


          #5
          There is nothing stopping you from selling your rental property with your tenant in situ, but you are limiting your market to those who wish to acquire an investment property, eliminating those who may wih to purchase to live in themselves. Also, viewings may be difficult to arrange as these have to be as a result of your tenant's co-operation. He/she can unilaterally refuse any viewings at all if he/she wishes. For these reasons you may well not achieve the price you could with vacant possession, but to achieve this will take time.

          P.P.
          Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

          Comment


            #6
            Originally posted by ice queen View Post
            We wish to sell our rental property and I have some questions :-

            1) Is it best to give notice to tenant before putting property on the market?
            s
            It depends whether it is a good rental property.

            If it's a good rental property that is already fetching a good return, a landord would prefer a tenant already in there.
            Allow tenants to protect their own deposits. I want free money when they do it wrong

            Comment


              #7
              Originally posted by ice queen View Post
              What date (dd/mm/yy) did the last fixed term tenancy contract begin?
              Not sure - is this relevant?
              Yes, highly relevant.

              We cannot advise you on which type of notice to serve, and the dates to use on that notice, without this information.

              Comment


                #8
                selling a letting investment

                You tend to get the best price when selling with vacant possession. Your letting agreement is likely to include a covenant on behalf of the tenant to permit viewings in the last month.

                Best way to get a good price is to attract interest with a realistic asking price.

                The market has softened in the last few months.

                Use this pre-marketing time well : have your solicitor prepare a buyers pack with replies ready for all the standard enquiries.

                Deal with any obvious defects like droopy gutters, peeling soffits so that these don't discourage buyers. Spending say quarter of one percent of the house's value on it before the punters come round should pay off in spades.

                Comment


                  #9
                  Thanks everyone, I think the best option will be then to give the tenant notice first.

                  New 6 month agreement runs from 13 July 2010, so literally just signed

                  Comment


                    #10
                    Why did you sign a new agreement if you want to sell?

                    If I understand you correctly, the new agreement would end in 6 months FROM 13th July so could not get possession until it ends.

                    Comment


                      #11
                      Originally posted by ice queen View Post
                      Thanks everyone, I think the best option will be then to give the tenant notice first.

                      New 6 month agreement runs from 13 July 2010, so literally just signed
                      The two month notice served in a fixed term is a s.21(1)(b) notice. Template here
                      http://www.letlink.co.uk/GeneralInfo...on/S21_1_B.pdf

                      You cannot serve a s.21 notice until after the tenancy begins (so no sooner than 14th July) and it cannot expire before the end of the fixed term (i.e. 12th January 2011).

                      Also, a s.21 is invalid if served before the deposit is protected and the prescribed information provided to the tenant.

                      Keep a copy of the notice and get proof of posting.

                      Personally, I would delay serving the s.21 for a few months - it's not exactly a friendly welcome to a new tenant.

                      Comment


                        #12
                        Thank you - it's actually an old tenant who signs a new agreement every 6 months

                        Comment

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