How can I keep tenants happy AND sell the property?

Windsorcastle

I have been renting out to very reliable tenants for last few years on 12 month ASTs - current one expires in September. I really want to sell the property and buy something closer to my work, but I would like to hang on to the tenants until I sell, and they are happy enough to stay. However, they are not keen on going to a periodic tenancy as I have suggested, as they want the security of an AST. Plus I need to get the property redecorated, and a new roof put on before I market it, as it really needs this, and I don't know how they will be about having viewings while they are still renting the place.

I am a very responsible and fair landlord and want to keep them happy but I also do need to get the work done and sell the place. I was thinking of offering a rent rebate while the work is carried out, but other people have told me I'm mad to do that as I haven't raised the rent in the 3 years they have been there. Also, how do I broach the subject of viewings, as these could drag on for ages in the current market?

I need advice from seasoned landlords about the best way to keep the tenants happy, but also protecting my own interests.

Gonzo33

Not really a seasoned LL so not sure my advice will be any good (there will be people along later whose will I am sure).

I am in a similar position, although not regarding the repairs. Initially I was also going to keep my tenants in situ until I had sold, but the agent were a LA with a side of sales, and were useless to be polite. Therefore I gave notice to the tenants, sacked the agent and two months later (Monday this week) got a new agent in. The new agent has already been far more proactive than the last, and I now have as many viewings booked in a week than I did in three months with the old.

I also got a feel from reading the boards here, and direct advice on these boards that viewers may be put off with tenants in so maybe that has helped as well.

BitterAndTwisted

What you are proposing is known as wanting your cake and eating it, too. If you need to sell, evict your tenants and get the work done when it's vacant. If I was your tenant I'd want a whole lot more than a rent-rebate for having to tolerate a load of building work and then have to find a new home once it's done. And I would absolutely not consent to any viewings either. Your tenants might be willing to be a bit more flexible, of course.

Turnbull2000

Without a hefty reduction in rent, I don't see how you can avoid screwing over the tenants. I don't wish to sound mean, but your intentions are rather selfish and if I were your tenant, I'd tell you to do one and ensure selling was as difficult as possible.

I why do you assume you should have automatically raised the rent each yet? Many professional landlords often leave rent static over a long period to retain good tenants. You accidental landlords are a blight on the whole housing sector and the lives of people seeking a secure home.

altyfc

Yes, I'd get the tenants out, get the work done and get it sold. It's easier to effectively sell a property without tenants in place anyhow.

DannyboyMidlands

Get the roof done while the tenants are there, then kick them out, decorate and sell the dump. Nobody will want to buy it with tenants in-situ anyway.

theartfullodger

Bribe them to go early, then do the work. Start at an offer of £17.3k

Windsorcastle

Turnbull2000 wrote: »

You accidental landlords are a blight on the whole housing sector and the lives of people seeking a secure home.

I think that's a bit unkind! I have experienced enough rubbish LLs in my own time as a tenant and I have made sure I am a very responsible LL and have always treated my tenants fairly, and have always carried out repairs etc, quickly and without quibbling, which is more than I can say for plenty of 'professional' LLs!

But thanks for the other point you made.

Windsorcastle

Thansk for all the HELPFUL comments! But it's not a 'dump' thanks, nor am I some leech of a LL, but you can't post on any of these forums without getting some snide comments so hey ho! I appreciate the advice, I was worried that having tenants in situ would put off buyers and it sounds like that is the case. Will my landlords insurance cover me for the property being unoccupied while I get the work done and sell it?

theartfullodger

I can't read the terms of your insurance policy from here - sincere apologies for this terrible failing on my part.

Suggest you read the policy. From memory my landlord policy allows 90days. I know there are insurers who can give cover when unoccupied

pmlindyloo

As a matter of interest, have you told your tenants that you need to have a new roof and decorating done?

I can understand that they may be happy to stay and accept viewings but am not convinced anyone would tolerate the disruption/noise and inconvenience during the work.

I am also of the opinion that you need to give them notice at the end of their tenancy and get the work done/put it up for sale.

Even if you could negotiate with the tenants about all this you would still have the problem of their wanting a fixed term tenancy agreement. if you sold during the fixed period then it would make your buyers extremely nervous about going ahead with the purchase when there would be no guarantee that your tenants would vacate at the end of the fixed period.

Do you want all of this potential hassle? Serve notice to end their current tenancy, do the work and put it on at a price that will get you a quick sale.