Selling with a Tenant on A Rolling Contract

debhilton

Hi guys, Im hoping to put my house on the market in the next few months. My current tenants contract runs out in July and a few months ago we agreed they would stay on a rolling contract so long as they allow access for the usual modifications for getting ready to sell, access to agents for arranging the sale and then of course viewings. I in turn will give them 2 months notice when I need them to vacate and they will give me 1 if they find another property. This has all been communicated through my letting agent rather than myself and has all been verbal. Although my agent has advised me of this by email.
Im wondering has anyone been in this position and could advise of any pitfalls to watch for or any tips. Also do you think I need something more in writing about this?
I have purposely not started any proceedings until their original time runs out, although Im the landlord Im trying to see it from their point of view as much as possible. So hopefully theyl show me the same respect in return.

Thanks in advance for any advise it will be greatly welcome.

DVardysShadow

Human nature being what it is, if they like it where they are, then you could find that they are less than cooperative over viewings [they don't have to have them] or they point out drawbacks with the property either real or imagined [smells when the wind blows from the northeast]. You will need to give them notice some weeks before exchange of contract, so you do risk being without rent while you remarket if the tenants leave and the sale falls through.

debhilton

DVardysShadow wrote: »

Human nature being what it is, if they like it where they are, then you could find that they are less than cooperative over viewings [they don't have to have them] or they point out drawbacks with the property either real or imagined [smells when the wind blows from the northeast]. You will need to give them notice some weeks before exchange of contract, so you do risk being without rent while you remarket if the tenants leave and the sale falls through.

Thanks , this is what is starting to worry me. At 1st it seemed like a perfect solution for us all but now Im worrying about how accommodating they will be and how presentable the house will be for viewings. I doubt things will move very quickly given the current market at the moment so I think I'l see how it goes and then if they dont play ball we'l have to reconsider. Im not looking forward to missing out on the rent but it may be something Ive got to put up with and live on baked beans for a while. :laugh:

Werdnal

We tried selling with a tenant and it was a nightmare. He allowed the first 2 viewings, but moaned about the place so much that put off prospective buyers. Then refused to answer calls or return messages for all future enquiries to view. Also, the place will never be presented at its best with your tenants in situ - toys everywhere, dirty dishes in the sink, curry smells from the night before - not a good impression to get buyers interested!

Also, it is all very well for T to say now that they will go quietly when you issue 2 month's notice, when in reality, they could ignore it and force you into eviction through the courts - longwinded and expensive process, which would no doubt delay any deal so long that buyers would walk away.

Besides, you are already limiting your market for buyers, as many will be put off even looking with tenants in place for all the above reasons.

franklee

Did you tell them you were planning to sell that soon before they signed up for the tenancy? If not then I can see they'd have good reason to be miffed as moving home is time consuming and expensive and viewings intrusive. You're quite happy to accept the rent in return for which your property becomes the tenant's home so they can eat curry and leave dishes in the sink as much as they wish.

G_M

The usual advice is not to try to sell till you have vacant possession, for all the reasons above.

No sensible buyer will Exchange contracts till the tenants have left (and no decent solicitor will let them), and few will even take you seriously as a seller till the tenants have gone.

Of course, you could always look for another landlord to sell to....

Werdnal

franklee wrote: »

Did you tell them you were planning to sell that soon before they signed up for the tenancy? If not then I can see they'd have good reason to be miffed as moving home is time consuming and expensive and viewings intrusive. You're quite happy to accept the rent in return for which your property becomes the tenant's home so they can eat curry and leave dishes in the sink as much as they wish.

I take it that comment was addressed at me! My tenant actually chose to move in whilst the property was on the market (his previous rental had come to an end and he wanted something quickly in the same town), so he fully understood the situation before he signed up! We were happy for him to stay until any sale and initially he seemed grateful we'd take him on at short notice, but once he started being awkward, we saw out his 6 month fixed term and gave him S21.

As for the property not being presented well, I wasn't having a go at any tenants here - I know its their home and they can treat it as they wish, and refuse viewings if the choose. I was merely telling the OP what can happen. Its not in the tenant's interest to help the sale process, as it if effectively making them homeless, so they will not do you any favours.

Any empty, tidy, well decorated and presented property, priced competitively for the local market will sell far quicker!

satchmeister

Werdnal wrote: »

We tried selling with a tenant and it was a nightmare. He allowed the first 2 viewings, but moaned about the place so much that put off prospective buyers. Then refused to answer calls or return messages for all future enquiries to view. Also, the place will never be presented at its best with your tenants in situ - toys everywhere, dirty dishes in the sink, curry smells from the night before - not a good impression to get buyers interested!

Also, it is all very well for T to say now that they will go quietly when you issue 2 month's notice, when in reality, they could ignore it and force you into eviction through the courts - longwinded and expensive process, which would no doubt delay any deal so long that buyers would walk away.

Besides, you are already limiting your market for buyers, as many will be put off even looking with tenants in place for all the above reasons.

He was paying rent, he is allowed to eat curry if he wishes, kids toys I mean kids toys in the house when the place is being rented.

I know you will have offered to help find the tenant a new place and cover all their moving expenses.

Werdnal

satchmeister wrote: »

He was paying rent, he is allowed to eat curry if he wishes, kids toys I mean kids toys in the house when the place is being rented.

I know you will have offered to help find the tenant a new place and cover all their moving expenses.

I won't bother to re-type my reply above. I fully agree - just read it.

I shouldn't have to justify myself and I am not accusing any tenants of doing anything other than what I would probably do in the circumstances. The curry/toys scenario was an analogy to give the OP a perspective on what can happen. Didn't happen to me - he was a single guy with no kids anyway!

I am not guilty of taking rent from a tenant and making him homeless - he chose to move in with the for sale board already in the garden!!!!!! We were happy to leave the place empty but he knew our LA and approached him desperate for somehwere to rent at short notice. Our previous tenant moved out when we suggested we were putting place on the market anyway. End of story.

I was only trying to advise the OP of the pitfalls of keeping a tenant in place. Forget I even bothered!!!!!!!!!!!!!

Yorkie1

debhilton wrote: »

Hi guys, Im hoping to put my house on the market in the next few months. My current tenants contract runs out in July and a few months ago we agreed they would stay on a rolling contract so long as they allow access for the usual modifications for getting ready to sell, access to agents for arranging the sale and then of course viewings. I in turn will give them 2 months notice when I need them to vacate and they will give me 1 if they find another property. I have purposely not started any proceedings until their original time runs out, although Im the landlord Im trying to see it from their point of view as much as possible. So hopefully theyl show me the same respect in return.

I appreciate your sentiments, but the notice periods you outline are merely what is required by law, so you haven't actually made any concessions there (neither have the tenants in that regard). However, the tenants are the ones whose convenience is far more disrupted by agreeing to allow you to do modifications, access for agents and then viewings. That is incredibly hassling for a tenant - I know as I was put in that position - for an unforeseeable period of time.

If you really wanted to show your tenants some recognition of what they are prepared to put up with during this period, are you offering any form of rent reduction or just expecting them to put up with it?

debhilton

Yorkie1 wrote: »

I appreciate your sentiments, but the notice periods you outline are merely what is required by law, so you haven't actually made any concessions there (neither have the tenants in that regard). However, the tenants are the ones whose convenience is far more disrupted by agreeing to allow you to do modifications, access for agents and then viewings. That is incredibly hassling for a tenant - I know as I was put in that position - for an unforeseeable period of time.

If you really wanted to show your tenants some recognition of what they are prepared to put up with during this period, are you offering any form of rent reduction or just expecting them to put up with it?

I am NOT just expecting them to put up with it. they were given the option to end their tenancy at the end of their 12 month contract in July or choose to stay in the knowledge that this would be the situation. Its not like this has been dumped on them. I actually gave them 4 months notice of my intentions before the end of their current contract which would allow plenty of time if they wanted to look for elsewhere to rent (of which there are many similar properties in the same area so wouldn't have been too much of an inconvenience.) I understand it is a hassle for a tenant which is why I gave them plenty of notice and left the choice with them as to wether they wanted to put up with it or not. Their choice I didn't force it on them as Im not doing anything until their original term is finished. And as a matter of fact they are going onto a reduce rent which my agent went mad and tried to talk me out of. But believe it or not I am not all about the money. A lot of it is feeling more comfortable not leaving the house empty.

Apologies to Werdnal and thank you for your comments. I was just after a bit of feedback on others experiences and didn't expect poor Werdnal to get grief for just sharing their experience.