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Advice on selling home with or without tenants insitu
Comments
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As you have been told, you can't have both. Stop being greedy and start being realistic. Likewise you will only have the property on for "months and months" if you get greedy with the price expecting to sell it for what you could of had at the peak.
Greedy seems to be the word of the day :rotfl:
I'll serve the tenants their notice and stick the house on for a tenner.
Worries over
Debt Free Day - November 1st 2011 - would be a fantastic Christmas that year ((Fingers crossed I can do it)):D
If we all stood together and threw our problems up in the air - we would rather catch our own again than somebody elses :A0 -
I don't think you're being greedy - from the sounds of it, you just want to minimise the cost of selling your investment, which is absolutely fair enough.
Unfortunately the costs are a real balancing act in this market.
Keeping the tenants in place (whether or not on reduced rent) will possibly (probably) mean the house will take longer to sell. You may also find yourself having to sell at a reduced price because the house is not presented attractively.
So the usual advice is to give appropriate notice to your tenants, present the property yourself to maximum advantage once they've vacated, and get a faster sale at an uncompromised price.
The complicated bit is that the market is frozen in many parts of the country right now. Good buyers are sitting on their hands and others are struggling to raise mortgages. So you could be looking at a long rental void, yet still no sale at the end of it. And you'll have lost your lovely reliable tenants into the bargain.
FWIW, I'm not sure it's an either/or situation. Why don't you "see how it goes" for a couple of months? Put the place on the market and incentivise the tenants with a slightly reduced rent. Ask the EA to report back on condition and to obtain feedback from viewers.
If you hear that the tenants are being obstructive, or not presenting the property well, serve them the requisite notice and start re-marketing again once the property is vacant. (Though if you have to do this, make sure your EA does a proper "relaunch" with new presentation, photos and even price if necessary).0 -
For the record, I never used the word 'greedy', nor implied the OP was "a profit making landlord ".
I simply used a common expression to describe the act of trying to do two conflicting but beneficial things at the same time. I sympathise with your predicament but merely wanted to explain to you the difficulty, and risk, of renting and selling simultaneously.
No insult intended!0 -
Thank you westlondonbuyer that was really helpful and exactly where I was coming from.
I'm now trying to save as much as I reasonably can each month to help cover the mortgage and our rent at the same time once our rental income stops as I know the house stands it's best chance of selling if empty of tenants. Will do a quick spruce up job in there when they go and get a couple of local valuations but definitely price it as low as possible.
All I care about is paying back what's owed, not being in negative equity and moving on with my life! Got a few months yet but it's already starting to affect my sleeping pattern
Debt Free Day - November 1st 2011 - would be a fantastic Christmas that year ((Fingers crossed I can do it)):D
If we all stood together and threw our problems up in the air - we would rather catch our own again than somebody elses :A0 -
Are you going to exchange before they leave?neverdespairgirl wrote: »We are buying a place with tenants in it.
But, a big but, the tenants are mates of the owner, and have agreed to sign the contract for vacant possession.
I would not be happy doing this. It would be a nightmare if they don't leave when asked to.0 -
Are you going to exchange before they leave?
I would not be happy doing this. It would be a nightmare if they don't leave when asked to.
Yes, we are. But they are signing the contract, so should they not leave, we're covered. We won't complete until there is actual vacant possession....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
I am in the same situation. I am currently outside the UK so I am considering offering the tenants a commission to help me sell the flat. Idea is to avoid EA fees (about 4,000) and use an online agency (£400) and pay the tenants to help. Flat is worth about 210,000, so a 0.5% commission for the tenants would mean about £1000. Total feess would be about 1,500. Or 2,000 if I paid them 0.75%.0
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This may give you a feeling of confidence in the tenants' intentions, and insdeed that confidence may be well-placed. Without knowing the parties involved or their circumstances it's impossible to comment.neverdespairgirl wrote: »Yes, we are. But they are signing the contract, so should they not leave, we're covered. We won't complete until there is actual vacant possession.
However, their signature on the contract (you mean the sale contract I assume? not the tenancy contract?) means nothing.
Their legal right to remain in occupation until a court order is both sought and enforced is unaffected by this signature.
It's a risk only you can weigh up.0 -
This may give you a feeling of confidence in the tenants' intentions, and insdeed that confidence may be well-placed. Without knowing the parties involved or their circumstances it's impossible to comment.
However, their signature on the contract (you mean the sale contract I assume? not the tenancy contract?) means nothing.
Their legal right to remain in occupation until a court order is both sought and enforced is unaffected by this signature.
It's a risk only you can weigh up.
It's no risk, really. Because we don't have to enforce anything.
The tenants have themselves already exchanged on another flat, as they are marrying and buying, so we're pretty happy they intend to leave.
The seller has to get vacant possession before we complete, not us as buyers....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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