Can you rent out your house and keep it up for sale

MrsBauer

I'm trying to sell my house but things are slow. I'm relocating soon. Does anyone know if I can rent out my house and keep it up for sale?

Thanks

FATBALLZ

You can but you'll be restricting your potential purchasers to Landlords and idiots. And bear in mind if your house isn't a decent rental investment then landlords might not be interested.

Arthurian

If you do, don't let your tenant show people around. Difficult to see the upside of the deal from their point of view, unless they want to experience life as a homeless person. So they'll point out every defect.

PasturesNew

It can be a conflict of interests.

Tenant has a right to "quiet enjoyment" which means they can refuse viewings; no matter what you put in the contract. Tenants will be put off by the fact you're trying to sell it as it costs a lot of money to move into somewhere - and another shedload to move out. Not to mention all that faffing about with utilities companies and mail.

Buyers won't be able to buy if they want to live in it - they won't be able to exchange contracts until after the tenant's left.

That leaves you investors.... they've got the pick of the bunch at the moment and often still not buying.

So who do you think would be able to buy a house with a tenant in it? And who do you think would want to rent a house they could only be in for six months?

theartfullodger

As above and also remember, only rent out property if you can cope with the emotional AND financial stress of the "tenant from hell" (or "Agent from hell") who doesn't pay you for (say..) 7 months whilst you still have to pay mortgage & agency fees & legal fees to get them out & then 'phones up asking for repairs & you MUST DO THE REPAIRS or the judge at the possession hearing will decide you are harassing poor innocent tenant.

& Tenant does not necessarily leave when you ask them to or at the end of the tenancy:Only way to get them out is court possession order then bailiffs carry tenant out...

& you'll need lender's permission (they may charge fees or increase interest rates or plain refuse...) & gas safety cert & special Landlord insurance: "Ordinary" insurance won't pay out when place burns down, tenant's grandchildren 'orribly burned & you are now bankrupt...

Cheers!

Cheers!

Artful

G_M

Legally yes (providing you comply with all the usual landlord/tenant legislation.)

Practically no. Mad. Tenant can refuse viewings. Tenant can refuse to leave if you sell. Tenant can...

And most of all no sensible buyer (except another landlord who'll offer way under the market rate) will be interested till the tenant leaves.

Werdnal

Minimum tenancy would be 6 months, and that is if tenant obliges and leave at the end. If not you would be faced with eviction through the courts, which could take several more months.

Then you have the hassle of referencing/credit checking tenants, bringing the property up to a rental standard (gas safety checks etc), insurance on a landlord basis - residential policy would be void, and then there is the mortgage if you have one - they probably wouldn't allow letting anyway.

Then the tenant themselves, can refused viewings, or atleast be very awkward about them, and if you do get potential buyers through the door, you cannot gag the tenant, so they will relate tales of the barking dog next door, the rowing neighbours who come home drunk every other night at 3am (fictious or not) - believe me we tried to sell with a short term tenant!

Best keep it on the market empty and save yourself the hassle. A lot of people think a short term let would make them money, whilst the oppostite is more likely true!

MrsBauer

But I have to move and can't really afford my mortgage and rent in the new place what do people in my situation do? Should I rent it out for a year then can I put it up for sale with tenant still in (but not there at viewings and maybe on a month or two notice period so if I get a buyer they can move out in time it takes to complete)?

Werdnal

I think you may have missed the main point here - YOUR MORTGAGE!

Loans on residential properties rarely get permission to let. You must speak to your lender before you even contemplate letting it. If they refuse (or you do it anyway without asking) you face repossession. Ask them first if it is possible before you proceed any further.

If they agree, you need to read, learn and inwardly digest everything you can about becoming a landlord, as it is not just simply getting a tenant and sitting back to rake in the rent. There is a lot more to it and a lot of pitfalls and expense for the unwary.

First, speak to your lender ......

Then you cannot insist on viewings with a tenant living there - they have a right to refuse any visits at all - whether they are present at the time or not. What if they default on the rent - you cannot afford your mortgage now, so rent for yourself and mortgage is going to be worse.

Also, how can you just "get them to leave" as they can ignore all notices to leave, then you will have to resort to court action to get them evicted - a costly and longwinded procedure.

I feel your pain at your current financial situation, but please be careful that you do not end up worse off, by doing the wrong thing now.

MrsBauer

Nationwide allow consent to let I think but obviously I'll check.

DannyboyMidlands

MrsBauer wrote: »

But I have to move and can't really afford my mortgage and rent in the new place what do people in my situation do? Should I rent it out for a year then can I put it up for sale with tenant still in (but not there at viewings and maybe on a month or two notice period so if I get a buyer they can move out in time it takes to complete)?

Drop the price, sell it and move on with your life. Any house will sell into any market - providing the price is right. How will sweeping it under the carpet for a year help?