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

Werdnal

As someone else mentioned earlier, why is your house not selling? Probably because its not the bargain you think it is, and it is overpriced.

Letting to someone in the meantime will not increase its value, infact it may decrease it as you are reducing the market of possible buyers who would be put off by tenants, plus you do not know how well the tenant will look after the place, so you could be faced with repair and redecorating costs after the tenancy.

Reduce the price, sell your house and move on. Start afresh and get on with you life without landing yourself with the additional complication of letting!

dizziblonde

When I was a tenant there was no way on this earth I would have rented a house that was also up for sale. The house we did rent, had previously been on the market but when he'd realised it wasn't selling (price and bad DIY mainly, parking a side issue) he'd taken it OFF the market before putting it up for rent. Wouldn't have touched it if it had still been on the market. Why would you want to rent somewhere and be expected to keep it in showhome condition and have endless viewings trooping through and be continually aware that your LL could get an offer and start to move you on - with the fact that letting agency fees and the like are pushing £150 per person round here, you'd have to find a new deposit while you're waiting for your old one back and all that - it's a HECK of a lot of added expense potentially and a total lack of certainty beyond the initial 6 months.

When we bought we also viewed houses currently being rented (EA didn't tell us that situation till the actual viewing) - by the time the tenants had invited all their mates around to stare at us going round - it was a very very uncomfortable experience and, despite the house being a decent solid house - no way would we have gone ahead with the purchase purely for the fact that we didn't want to buy off someone prepared to pull a stunt like that to be honest.

mchale

tbs624 wrote: »

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.

Thats why we live in a democratic society, its their choice to look elsewhere & my choice to seek a guarantor, and with a 97% occupancy rate, not many tell me to get stuffed :rotfl: :rotfl:

moneybunny123

MrsBauer - I have been in your exact situation. Almost 3 years ago, I put my house on the market but was unable to sell. Stubbornly (and, with hindsight, stupidly) I didn't drop the price low enough, so rented it out instead. A simple and easy solution (or so I thought).

I moved out of the area and an agent took care of my rental property. In moved a couple who, in the last two years, have run up a lot of debt with utility companies, credit card companies (several CCJ letters arrive daily). They vacated my property recently (thank God!) leaving me with rent arrears and have left the place in a mess and have moved on without leaving any contact details. I'm now trying to retrieve their deposit (which doesn't anywhere near cover what they owe me) and I'm even having to spend further money getting my claim for the deposit witnessed by a solicitor (admittedly, this is only £5 - a drop in the ocean - but every bit adds up).

I'm now going to completely redecorate from top to bottom and will do everything I can to get the damn place sold.

I'm sure it works for lots of people, and lots of landlords (and tenants) have great experiences of renting. However, if it's a temporary solution rather than a business (as it sounds like yours is), I would avoid like the plague. As others have pointed out above, there are SO many things to consider that you just don't even think about before going into it.

Yes, you realise you have to pay and submit tax returns on your profit; yes, you realise you're liable for gas checks, maintenance, etc and you keep a contingency fund "just in case"; yes, you realise that you have to have landlords insurance; yes, you realise that the place may be worth less when your tenant leaves and you're left with a big cleaning bill. The list of what you're letting yourself in for goes on and on.....

But what if your tenant doesn't pay their rent? What if he/she DOESN'T leave when issued with notice? Before you know it, your expenses have run into thousands.

Dropping the price to sell your house doesn't seem like a bad idea now does it?

franklee

thegirlintheattic wrote: »

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.

This is an important point, tenants, like other people, come with varying views, some may be happy with viewings if the rent is attractive enough, others may want privacy in their own home. Having an arrangement upfront is more likely to produce co-operation. I'd be livid if I rented a property without being told first that I was expected to pay for the privilege of strangers trooping though my home such that I could shortly be made homeless and that I was expected to vanish for said viewings (not a chance).

PasturesNew

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)?

Well, without sounding mean, they think about this before they apply for a new job elsewhere or think about upping and moving.

Depending on location, there's a small chance it might be a goer as a holiday let maybe. You get more per week for these, no tenancy - and viewings could be done round bookings (holiday lets tend to only be occupied in peak seasons). On the downside, agent fees tend to be higher, then there's the cost of linen/cleaning too. Also, if you go onto an agency's books then you're at the back of the list if they're giving advice to callers about which one to rent out as other people on their books have been with them longer and so they're more likely to want to place those bookings with them. But for "choose it yourself" online booking the agent wouldn't be influencing people.

BugglyB

I am currently renting from a friend of mine who is trying to sell her house (that I live in). I am also trying to buy a house, so our deal is whoever sells/buys first gives at least months notice to the other.

That said she is a great friend of mine and we trust each other to the end of the earth and back, so she knows I wont sabotage her viewings. I am also renting at below market rate for the inconvenience of people coming round all the time.

Interestingly the estate agents selling her house were pretty awful with me, ringing me in the afternoon to say 'someones coming to view this evening' when I said 'errr no' they said 'well we'll have to ring your landlord and let them know you're putting off potential viewers' to which my answer was 'crack on then love!':rotfl:so please, do be aware of these problems that arise.

Mazzawa

MrsBauer wrote: »

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

This all depends on the product, length left on the mortgage, percentage of the mortgage to house value (i forget the abbreviation), your reliability to pay when no rent is taken, and a thousand other things. Best to book an appointment at your local branch to discuss if you are serious about renting out and they'll be able to tell you exactly where you stand.

poppysarah

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)?

Sell it.


....

thegirlintheattic

dizziblonde wrote: »

Why would you want to rent somewhere and be expected to keep it in showhome condition and have endless viewings trooping through

You don't have to keep it in 'showhome' condition, you treat it as you would normally. The LL is not allowed to have viewings unless you agree to it, so you would never have endless viewings.