Selling my rental property

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    Selling my rental property

    Hi
    Apologies if there has been a recent thread on this.

    I have had a new build rental property since 2006 and i am now thinking of selling - as need to buy a house. I have very good tenants and i want to know how to play it, should i give them the standard notice and hope to put property on the market afterwards? Or am i legally permitted to put the property on the market, whilst they are serving their notice period? This would obviously help me cover the mortgage.

    I haven't begun searching for agents, but would a selling agent want my tenants out, or would they take on the property on whilst the tenants are living there? The best option for me would be to find another landlord to sell too, but i know of people who have had difficulties with exchanges, whilst having tenants - so i rather serve the notice.

    All this is a bit of an unknown to me, i am hoping my tenants would be friendly enough to allow for viewings, but i'm fully aware they don't have to.

    What are other peoples experiences of selling a rental property, whilst having tenants living there?

    Any advice appreciated!

    Mrs d

    #2
    The best option is in fact to sell to T!
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      You can sell the property with or without vacant possession. Usually, you'll get a better price with vacant possession, but ask an agent which is the best approach for your particular property.

      The T must allow viewings if the contract says so; but if they refuse, you'd need to get a court order to enforce the provision, or if T allows a small weekly window for viewings, it's enough to comply with their contractual obligations.

      Comment


        #4
        I agree. Many auction sales of let properties are on the basis of 'no internal inspection at all'.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          I was gutted when 1 LL sold up. I basically sold his house though as I requested to show ppl round myself as the EA was disrespectful towards me (rang all hours of day/evening/weekends expecting to be able to show folk around with an hour's notice!). I asked to be emailed instead and to show ppl round personally. I answered all questions honestly (great neighbours, quiet location) and the lady that bought it was one I had shown around and allowed further visit for her children to view.

          You have options.

          1. Sell to Ts
          2. Offer Ts half rent if they can be reasonable regarding viewings, ensure property is nice to view and serve notice once offer accepted with view for it to expire and they've moved prior to exchange. (See below for question for Jeffrey).
          3. Serve notice at earliest legal opportunity to have vacant possession for viewings/exchange.

          From a Ts viewpoint. Ask your EA to respect the T (ie they are not to ring with a viewing scheduled for an hour's time!). EAs are usually unaware of housing laws.

          I wonder if Jeffrey could tell us if it would be legal to draft up a legal document to state that LL would reimburse T half the rent if x,y and z has happened (ie allowed viewings and moved when S21 up). ???
          I'm a good tenant with great landlords
          I'm also a living, breathing, fully cooked female.

          Comment


            #6
            Originally posted by Brb View Post
            I wonder if Jeffrey could tell us if it would be legal to draft up a legal document to state that LL would reimburse T half the rent if x,y and z has happened (ie allowed viewings and moved when S21 up)?
            Yes, as long as it's drafted very carefully.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Whether it's better to sell vacant or not, depends on the property, and whether it is getting a decent yield for an investor.

              Look at the price you want for it, and then work out the yield that an investor would get in return based on the income.

              To say that the best option is to sell to the tenant, is baseless without figures.
              Allow tenants to protect their own deposits. I want free money when they do it wrong

              Comment


                #8
                i'm reluctant to sell to an investor who would keep my tenants on, i forsee all types of legal complexities involved with the exchange period.

                Comment


                  #9
                  Originally posted by rd1 View Post
                  i'm reluctant to sell to an investor who would keep my tenants on, i forsee all types of legal complexities involved with the exchange period.

                  Not in my experience: Investors can usually move a lot faster than buyers needing to sell their own place. Yes, some things need checking & notices issued to tenant but a competent lawyer should know what needs doing...
                  I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                  Comment


                    #10
                    One option I'm mulling to help in this situation is a "cashback" or "bonus" deal, where 1-2% of rent is returned at the end of the tenancy in return for cooperating with the things that landlord's like but which cannot be specified in an agreement.

                    That would include, for me, things such as cooperating with showing new tenants round in the last month, not excluding workmen after access has been agreed, maintaining good condition so that it can be relet rapidly etc.

                    1-2% is less expensive than an extra month of void, and the rent could even be increased slightly to cover part of it.

                    I'm still reflecting, though.

                    ML
                    Refer Mad Regulators to Arkell vs Pressdram.

                    Comment


                      #11
                      Speaking as a T renting a £500 pcm property (just to give you idea of percentage maybe) I would be chuffed if LL offered £100 to be paid after leaving, having been nice enough to show prospective Ts round, kept spotless etc because in reality I'd do it anyway (personal pride) but it would be very nice to be acknowleged for it.
                      I'm a good tenant with great landlords
                      I'm also a living, breathing, fully cooked female.

                      Comment


                        #12
                        thank you, that is helpful coming from a tenant.

                        Do you think i should give notice before the formal notice is served?

                        Comment


                          #13
                          Yes, definitely - if it were me I would go and speak to the tenants myself to try and keep things ammicable.



                          Freedom at the point of zero............

                          Comment


                            #14
                            If OP is intending to sell with vacant possession, do NOT even exchange contracts unless/until:
                            a. the tenancy has terminated, one way or another; and
                            b. T has vacated.
                            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                            4. *- Contact info: click on my name (blue-highlight link).

                            Comment

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