Please help me decide! Rent/ sell ?!?!

tabskitten

In a right Pickle!

I own a flat in Bristol which i bought just before the market crashed. I then moved to manchester and rented it out, when ground rent is considered i am making £50 loss per month on the rental....
Tenent just contacted me direct saying she loves the flat but is struggling with rent- she also said she would love to buy.......
She has asked me to lower the rent or says she hs to move out.
she has also offered me £20 less than i paid for the flat if she were to buy it.

So i am in a loss / loss situation from the start
Friend in Bristol says market is picking up- i am desperate to sell as soon as i can afford to!! Do i hang in there?!

goldbyron

Do you mean £20 or 20k?

tabskitten

sorry 20 k!!!

Fulham_Mark

How can the tenant not afford the rent but can afford to buy it?
If this person knows your situation then it sounds like they may be trying to force your hand to sell it to them at a bargain price.

I don't know Bristol but unless there is a large number of empty new builds I doubt that the market is dropping.

mortgate rates are dropping and other investments look pretty awful

tabskitten

Fulham_Mark wrote: »

How can the tenant not afford the rent but can afford to buy it?
If this person knows your situation then it sounds like they may be trying to force your hand to sell it to them at a bargain price.

I don't know Bristol but unless there is a large number of empty new builds I doubt that the market is dropping.

mortgate rates are dropping and other investments look pretty awful

ok- so what do i do?

ET1976

If you want to sell it, put it on the market.

In the meantime, I'd call her bluff on the rent (sounds as though she's trying it on if she can afford to buy) - tell her you can't afford to decrease it. If she really does intend to move out and serves notice in response to this, and you don't want the hassle of finding a new tenant if you are selling anyway (which you probably don't), you could try agree a compromise rent to keep her.

tabskitten

ET1976 wrote: »

If you want to sell it, put it on the market.

In the meantime, I'd call her bluff on the rent (sounds as though she's trying it on if she can afford to buy) - tell her you can't afford to decrease it. If she really does intend to move out and serves notice in response to this, and you don't want the hassle of finding a new tenant if you are selling anyway (which you probably don't), you could try agree a compromise rent to keep her.

this is what i ahev told her

Wrt putting it on the market, i bought 2 years ago for £125000, then the market crashed and i would have got about £95000 for it.

if i just 'put it on the market' i cannot afford what i would owe the bank if the market has not picked up again yet...........
I am wondering how long it will be until i can afford to sell it?

ET1976

unsure what the question is then... apart from the question which can only be answered with the aid of a crystal ball.

at least get it valued so you know where you are at the moment.

BitterAndTwisted

Has your tenant signed a tenancy agreement and is there anything in it which refers to a rent-review during the fixed-term? If not, don't renegotiate the rent until the end of the contract. Your tenant's financial problems are not your concern until they default.

mlz1413

1) your making a £50 pm loss with this tenants current rent
2) you can't afford the tenants offer as its 20k less than you paid and you don't have the difference to pay off the mortgage
3) how can the tenant be in a postion to buy if they can't afford current rent?

Have you actually had this flat valued or do you have a good idea of its current price?

Is the offer the tenant made realistic? If so this option is out because of point 2 above.

I would write back to tenant stating the length of notice they need to give and that you would be sorry to see them go, they have been a model tenant (if true) and you are willing to give them a reference if needed (again if this is true) that you would love to reduce the rent but are not in position to at the moment but maybe able to later in the year.

Start advertising flat and get organised for changing tenant.

tabskitten

ok thanks, have made enquiries into selling- it is all such an area that i am very unsure about as have never sold anything before.......

if the market picked up enough to sell i def will!!
Renting out is far to much stress!!!:eek: