should we get rid of our tenants in order tosell quick?

nugget08

I would really like some advice about our situation - me and my oh cant agree...

basically, the situation is this. We bought a one bedroom flat in London 4 yrs ago and really looked after it. last year we relocated to scotland and because we werent sure if we would like life up north, we decided we wouldnt sell our flat straightaway but rent it for a year. Basically, we have been here a year now and have decided to stay in scotland. we have also decided to sell the flat, as its costing us more and more everytime the interest rates go up and in direct debits alone just to keep things like house insurnace, boiler insurance etc going. We would now like shot of it asap, so are getting some vaulations done as we speak.

however, we went down to the flat at the weekend for an inspection and were dismayed at the state the tenants are keeping the flat in. Its not exactly dirty, but its quite smelly (they have got themselves a deep fat fryer so the place stinks of fat, and they dont wash their stuff proper;y so it stinks of damp) it also looked like they dont open the windows very often as the windows and window sills were filthy. one of the main selling features of the flat is that it has great windows on all sides of the flat.) they have also arranged the furniture so it makes the flat look really small, as well as got stupid stuff like teddy bears all over the place, all over the floor etc.

i just cant help thinking that we would sell the flat quicker if the tenants werent in it, and it was nice and clean and empty. i dont believe potential buyers are that good at looking past the crap. however, we cant afford to pay the full mortaggae down there and our rent up here, so decided (thanks to martin lewis's advice on radio 2!) to take a 6 month mortgage break, so from this month on, we are nnot paying nay mortage payments. this would allow us to get shot of the tenants, clean the flat up and hopefully sell quick.

however, my husband is thinking, if we keep the tenants and still have the mortgage break, we will be 'in the money' for a few months and save some cash. we can still put the flat on the market, but also actually make some money for a change.

so - the dilemma is this - do we put the flat on the market with the tenants in it and try to sell (maybe having a word with the tenats and ask themmnicely to tidy up a bit more). then see if it doesnt sell after a couple of months, maybe then look to get rid of them. (of course, once they find out we're selling, they may move anyway).

or, do we get rid of them now, tidy up the flat and sell it at its best potential?

I just think in todays house climate if the flat isnt looking its best, it will struggle to sell ( hubby also wants a really good price for it - we bought it 4 yrs ago for £135k.)

sorry for the rambling post, but i have no-one else to ask about things like this, and we just dont know what to do for the best. any ideas really would be welcomed.

thanks

m1ntie

You need to be aware that the tenants may not allow viewings at all. I am afraid that legally you cant make them during your tenancy.

pocketfullofsmash

agree with m1ntie, and if my home was being sold from under me I would hardly be inclined to keep the place in tip top shape to hurry that along.

Is it possible to meet with the tenants face to face? If so I would just openly tell them that you are thinking of selling, give them a fair (and legal) amount of notice to be out and check out if maybe they are in a position to buy it themselves which would save on lost rent, EA fees, undue stress about selling and of course tidying the place up!

Either way you can't get rid of them immediately and you should try to treat them well (not least because they could make things very difficult for you if they were inclined to...)

moneysavinmonkey

It's not really practical to sell while you have tenants....

Firstly is, the tenants don't have to allow visits from estate agents, viewers, valuers etc... understandably this in an unnecessary intrusion for them, and they probably won't bee too happy to co-operate.

Secondly, when you come to sell you then have to go through the proper procedures for getting rid of the tenants... in the case that the tenants have nowhere else to go, or need to move into council housing, or are just being plain awkward then you will have to go through a formal posession notices, and court orders - i've not experience of this but I think you are talking about months here... unless you are planning on selling with the tenants in situ (which will reduce the value of your flat) then you run the risk of being unable to give vacant possession over to the buyers on the completition date, ending up in you getting sued for mega bucks.

Thirdly, assuming you somehow get past points one and two, having messy, smelly tenants is likely to either devalue your property, increase the time it takes to sell (and in a falling market this also equates to decreasing the value) or both.

Of course, your husband is also right in that even if you get rid of the tenants there is no gurantee you will sell straight away and so you have to cover the 'void' whilst you wait for a buyer!

Fun eh! That's the joys of renting property for you. Who'd be a landlord, not me!

Mrs_pbradley936

Well if it is empty for a few months and you still have all the outgoings how would you feel then? I think I would ask if they would let people view and take it from there. Although I must tell you what happened to us in a similar situation. My mother-in-law had died and we decided to rent her flat rather than sell it after a few months we changed our minds because it was a long way away and it was a nuisance to sort out minor problems. We gave it to the same agent to sell as was letting it but somehow or another they forgot to give the tenant the required Notice and so the new owner did not get vacant possession! Luckily he was living with his parents and so just went back there until it was sorted out but I don't know what would have happened had he arrived with his furniture having moved out of somewhere.

nugget08

is that not the same as there being a clause in the lease that says they must allow people round the view the flat if they were moving out?

in the lease there is a clause that states that they have to allow access for potential new tenants to come round for viewings - is that only the case if they are wanting to move out of their own accord?

EdInvestor

As it's a flat that would be bought by a first time buyer, realistically the idea you can sell it fast (unless you offer a major discount) is a non-starter.

It's vitually impossible to get mortgages at present and even those who can do so aren't buying because they expect prices to fall further.

Sellers are now giving up and renting their flats out instead. Are your tenants good payers? Do you have a letting agent? Should their rent be increased at the next opportunity? Rents have gone up in some parts of London because FTBs can't buy and are renting instead so there is strong demand..

It could be that you are already in the optimal situation.Suggest you consider raising the rent, and use the payment holiday to stash the money in the bank so you can meet any shortfall between rent and costs.

PS.IMHO boiler insurance is a ripoff. But don't forget the annual Corgi check, that's essential.

robpw2

how the tennants furnish the flat etc is up to them your not living there anymore. you have to give your tennants suitable notice usually being 2 months suitable notice.
so you would neot be able to evict them for two months and althought you have the right to gain access to the flat with suitable notice usually 24 hours at times agreed with tennants you cannot demand that they move everything around because you dont like the layout

moneysavinmonkey

Mrs_pbradley936 wrote: »

they forgot to give the tenant the required Notice and so the new owner did not get vacant possession! Luckily he was living with his parents and so just went back there until it was sorted out but I don't know what would have happened had he arrived with his furniture having moved out of somewhere.

you were incredibly lucky that your buyer was prepared to do this, and did not send you the bill for an extended hotel stay + furniture storage + inconvenience!!!

nugget08

i agree with all that youre saying - having been tenants for many years I can understand how they would feel if we suddenly turned round one day and said ' we're selling, but you stay here and show people round and keep the place tidy for us. then you can move out'.

of course, what i think will happen is that as soon as we say we are selling, they will give notice and find themselves somewhere else to live, to protect themselves ( i know i would). i wouldnt just sit around and wait for months for the thing to be completed.

However, we do only have to give them a months notice, so it seems daft to me that we have arrnaged this payment break, which gives us 6 whole months clear to sell the property without having to pay for both places, and yet we're still keeping them in there and, quite frankly, devaluing the place.

i swear, i dont do regrets, but if i did i wish id sold last year. this whole renting lark has been nothing but a pain in my a**. and now we feel that in the current climate we need to sell this year, or else we'll be stuck with the place for another 5 yrs while the market recovers.

m1ntie

robpw2 wrote: »

how the tennants furnish the flat etc is up to them your not living there anymore. you have to give your tennants suitable notice usually being 2 months suitable notice.
so you would neot be able to evict them for two months and althought you have the right to gain access to the flat with suitable notice usually 24 hours at times agreed with tennants you cannot demand that they move everything around because you dont like the layout

Occasional access to do repairs, check on condition of propery etc is a lot different than a stream of estate agents, prospective buyers, valuers etc.
The tentants are legally entitled to "quiet enjoyment" of their home, viewings without their permission could and probably would be looked upon as harrasment.