Renting Out but want to sell

jangor_2

Since I could not sell my house I decided to rent it and moved out to rent elsewhere myself. After almost six months I would like to re-enter the housing market. My tenants have just over a month before the end of their six month contract and wish to renew it for a further six months. They are a lovely couple and have kept the house beautifully. However I feel I am getting too long in the tooth to remain in the renting sector and would prefer to buy. Can I offer my tenants a rolling month to month contract for say two/three months and then a further six months tenancy if I fail to find a buyer? I would be happy to reduce their rent for the inconvenience of needing to show anyone round the property. I have explained the situation to the tenants who understand but would prefer to remain in the property.

silvercar

The AST will automatically become a rolling contract if you fail to offer another fixed term contract when this one expires. You don't really then need to offer another fixed term contract.

I would be wary of letting tenants show your home to buyers. From experience as a buyer, tenants never display the property as a seller would.

LydiaJ

silvercar wrote: »

I would be wary of letting tenants show your home to buyers. From experience as a buyer, tenants never display the property as a seller would.

It would put the tenants in a difficult position too. It's not fair to ask them to put effort into trying to sell your house if they want to stay and therefore don't want it to sell.

franklee

What if anything does the tenancy agreement say about viewings? Mine says the tenant should allow viewings during the last month of the tenancy, by appointment with notice etc. Clearly your tenants aren't in the last month and would not be unless notice was given as it would just become a periodic tenancy at the end of the fixed term if nothing is done.

It's a right pain having to live with viewings. It's also a right pain having to move after just six months, did you let your tenants know that was the plan before they moved in?

So it's a case of talk to the tenants and see what they are happy to put up with, they are within their rights to refuse viewings. Also make sure the estate agent knows the rules re tenants or you will have complaints about the estate agent entering the property when they should not have.

jangor_2

Thankyou for the responses. I advised the tenants, when they viewed the property initially, that I was hoping to sell and would only offer them a six month contract, which they accepted. My contract advises that viewings can be allowed in the last month of the tenancy. There is eight days remaining before they start on their final month. I went to the property today, to carry out a property check and spoke to them both about my desire to sell the property but that obviously they would receive the correct amount of notice. I asked if they would object to my arranging an appointment to call with an Estate Agent to give me a valuation. They had no objection. They are really nice and I am trying hard not to upset them but I really would prefer to sell, if at all possible, in order that I can buy a property. I would not expect them to be inconvenienced by expecting them to show viewers around but would discuss with them whether they would prefer this to be done by an Estate Agent. I just don't know what else to do.

franklee

jangor wrote: »

TMy contract advises that viewings can be allowed in the last month of the tenancy. There is eight days remaining before they start on their final month.

Sorry but unless either side had served notice then that simply isn't the final month of their tenancy as a periodic tenancy will naturally arise. (A periodic tenancy is still a tenancy just the same as before except the notice requirements change). So as yet you and they do not know when the last month is.

You can of course still negotiate viewings if the tenants are agreeable to allow them early.

Debt_Free_Chick

It's more flexible for you both to go onto a rolling one month contract.

remember you need to give TWO rental period's worth of notice.

Remember you need their co-operation for viewings. And that they have no motive to do anything but the bare minimum to co-operate i.e. you can't expect them to keep the house in "show home" condition.

Can you not move back to sell it?

jangor_2

Thankyou. The problem is the tenants wish to stay despite the fact that I wish to sell the property. They do not wish to be given notice and I am happy for them to stay for as long as it takes. This is where the difficulty comes in. I know that I cannot allow viewings until I give them notice but I do not wish to do this because they would rather remain. I really hate the house so much I just cannot contemplate returning. I did try to sell for about six months prior to letting the house but did not have one viewing despite repeatedly reducing the price. This is the reason I moved out and now rent myself. If I continue with a rolling contract does the present tenancy agreement stand? I am fairly new to the world of letting.

franklee

jangor wrote: »

If I continue with a rolling contract does the present tenancy agreement stand?

Yes if neither you nor the tenants give notice then the tenancy automatically continues as a periodic tenancy.

All the terms and conditions of the original tenancy apply except those for giving notice. For a periodic tenancy the landlord needs to give two months notice and the tenant one. Notice served during a periodic tenancy needs to end at the end of a period.

So the tenant isn't in the last month yet.

The thing to do is ask the tenants what they will allow in terms of earlier viewings and offer them an incentive as you mentioned in the first post. Bearing in mind that viewings are a pain to live with, that tenants may not tidy up etc. as an owner would and that they will want notice of viewings and may wish to be present.

Obviously a tenant wanting to remain isn't the best person to sell a house.

Also it's tricky if you get a buyer, you should not exchange contracts until the tenant has gone in case they don't leave as you expect. So selling with a tenant in place isn't easy unless the buyer is a landlord who wants the tenants to stay.

RainMaker_2

jangor wrote: »

I would be happy to reduce their rent for the inconvenience of needing to show anyone round the property. I have explained the situation to the tenants who understand but would prefer to remain in the property.

There is a massive conflict of interest there !

However well intentioned the Tenants, they have an underlying desire for the proeprty not to be sold. Not to mention the fact that any prospective purchaser may worry about vacant possession on completion and thinking "is it worth the risk".

Rather than reducing the rent, perhaps some sort of fixed incentive (say 1% of the sale price on vacation) might be a better way forward ?

franklee

RainMaker wrote: »

Not to mention the fact that any prospective purchaser may worry about vacant possession on completion and thinking "is it worth the risk".

It's the seller needs to worry about this IMO as if vacant possession isn't handed over on time then the seller will get big fines. I'd expect the seller's solicitor to recommend contracts aren't exchanged till the tenants have gone. If the tenants haven't yet been given notice then that's a minimum two month delay and gives plenty of chance for the sale to fall through.