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

Trollfever

A friend moved into a six months AST paying six months rent up front. Within a month the owner put the property on the market and the agents started sending round prospective buyers.
This has annoyed the current tenant and they are currently considering staying put until such time as the bailiffs arrive.

MrsBauer

Thank you for your comments and advice. Please anyone out there do post if you have done this successfully or have rented a house that was on the Market...

G_M

MrsBauer wrote: »

Thank you for your comments and advice. Please anyone out there do post if you have done this successfully or have rented a house that was on the Market...

Do a search.

There have been several threads on here recently from buyers where they wanted to buy a rented property. From memory they mostly gave up on the purchase, or in one case ended up with a nightmare scenario because the tenant did not move out when expected.

Asking for someone whose " done this successfully" is crazy. OK. Maybe you'll find someone who HAS. But that does not mean YOU will be successful. The odds are stacked against you.

Should I expect to win the lottary this week and go on a spending spree in anticipation? - "Please anyone out there do post if you have done this successfully." :rotfl:

There you go! Someone responded. So it must be OK for to go and buy that Porsche!

mcc100

MrsBauer wrote: »

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)?

I'm not sure why you would wait for a year before you put it up for sale.

Sales are slow at the moment but in a years time they may be even slower and prices may have fallen further by then.

Yorkie1

MrsBauer wrote: »

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

Yes they do, but there is a 1.5% loading I think on the interest rate (depending on the product you're on) and possibly an application fee.

Don't assume you'll be able to continue paying the same montly amount after consent to let.

I'm not sure about NW, but there might also be loan to value issues (value of house vs. amount borrowed) before they consent.

thegirlintheattic

Depending on where you live and your tenants it may not be an issue at all.

I rent a house that is for sale, we knew it was for sale before we rented it. LL guarantee us 6 months (as they have to), and we took it because as it is on the market it has been refurbished to a high standard (some of the other places we viewed were dumps) and in this area these types of houses are not shifting on the market. When the 6 months were up we had an option of another 6 months or month-by-month, we choose month-by-month, which means if the LL gets and offer for the house we can be out before completion.

As far as I understand after the 6 months AST is up you as the LL can put the tenants on a month-by-month, so it's easier to sell. Your only major issue is that tenants can refuse viewings. If you are going to go ahead with this I would be honest with tenants that you are guarantee 6 months, after that you don't promise anything, they are less likely to refuse viewings if they are aware of the situation rather than springing it on them.

I would have thought that having money coming in and a house that is not sitting empty to attract vermin, damp and squatters would be a better idea than the small inconceivance of having tenants in for 6 months. Is your house likely to sell in that time?

mchale

MrsBauer wrote: »

Thank you for your comments and advice. Please anyone out there do post if you have done this successfully or have rented a house that was on the Market...

If you rent out make sure you have a home owning guarantor in place, then the tenant will think twice about shafting you, as you can shaft the tenant's guarantor back.

tbs624

thegirlintheattic wrote: »

Depending on where you live and your tenants it may not be an issue at all.

I rent a house that is for sale, we knew it was for sale before we rented it. LL guarantee us 6 months (as they have to), and we took it because as it is on the market it has been refurbished to a high standard (some of the other places we viewed were dumps) and in this area these types of houses are not shifting on the market. When the 6 months were up we had an option of another 6 months or month-by-month, we choose month-by-month, which means if the LL gets and offer for the house we can be out before completion.

As far as I understand after the 6 months AST is up you as the LL can put the tenants on a month-by-month, so it's easier to sell.

Upon expiry of a Fixed Term, a stat periodic would arise under the Housing Act 1988 whereno new FT is signed up for and T remains in occupation. LL has to give T a min of two months' notice to tie in with rental period - T however does not have to go until a court order says s/he must. The uncertaintly of that may not be conducive to a potential buyer getting to vacant possession in time for exchange of contracts

thegirlintheattic wrote: »

Your only major issue is that tenants can refuse viewings. If you are going to go ahead with this I would be honest with tenants that you are guarantee 6 months, after that you don't promise anything, they are less likely to refuse viewings if they are aware of the situation rather than springing it on them.

It's not the "only major issue" - as others have explained there is the issue of CTL which may not necessarily be granted.

thegirlintheattic wrote: »

I would have thought that having money coming in and a house that is not sitting empty to attract vermin, damp and squatters would be a better idea than the small inconceivance of having tenants in for 6 months. Is your house likely to sell in that time?

Therein lies another issue - the Ts may not (a) pay their rent on time (b) pay their rent at all. Unless the OP has a contingency fund to cover that likelihood ,plus any repairs costs which may arise during the tenancy, they may want to think again.

For every T who will think as you do, there will be another who will not agree to potential buyers viewing the property even if they knew the property would be up for sale during their tenancy.

tbs624

mchale wrote: »

If you rent out make sure you have a home owning guarantor in place, then the tenant will think twice about shafting you, as you can shaft the tenant's guarantor back.

Is this your recommendation for all Ts? Most potential Ts who are in reliable employment with a good credit rating and references etc will quite simply tell you to get stuffed if you ask them for a guarantor, and then they will look elsewhere. Seeking to rent out whilst simultaneously having your property on the market for sale will already reduce your potential "tenant pool" without the addition of making idiotic demands.

silvercar

Lots of threads on here about tenants put off from renting houses which are also on the market for sale and from buyers reluctant to buy a house that has tenants in situ.

Trying to rent and sell reduces your potential market for both.