How can I keep tenants happy AND sell the property?

Werdnal

It will put buyers off for a number for reasons:

No one will be able to exchange on it until its vacant, as you cannot get a residential mortgage until property is vacant possession.

If you sign them up for another fixed term, you cannot evict them, and few buyers will wait for months before you can get the place empty for them.

You cannot force the tenants to tidy the place and keep it presented at its best for viewings. Toys on the floor, dirty dishes in the sink and unmade beds - not a good look!

Even though they have now said they will allow viewings, we get a lot of posts here saying their tenants have agreed to this, only to decline when the time comes.

You also cannot gag the tenants when viewings take place. They don't actually want to encourage a sale and make themselves homeless, so could tell the viewers its a horrible place to live - anti-social behaviour every weekend, neighbours from hell, you name it really.

My advice is to cut your losses on the rent - give them notice to leave at the end of their tenancy - must be 2 months so you might want to get on with it sooner rather than later, get the work done quickly, rather than having contractors tip-toeing around your tenants and taking 10 times longer to finish, and present it well to sell quickly. The lost rent in the meantime, may be far outweighed by achieving a quick and hassle free sale!

Check your LL policy, as I believe most cover voids, but you may need to notify them. Also if its unfurnished, you will get 6 months council tax exemption.

BitterAndTwisted

No, I doubt the landlord insurance would. Depends on the terms of the contract you signed. Some have rent-guarantees and some do not, although the premiums for those with rent-guarantees are high and they also stipulate the kind of tenants you agree to let to. I can't read your contact from here. Still, after three years of continuous rent, you should have the cash-reserves to have the work done without any rental income worries.

Gonzo33

Windsorcastle wrote: »

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?

Mine is normal insurance for 45 days and then it kicks into the unoccupied conditions listed in the policy docs. If you haven't got them, or can't find them, I am sure that the insurance company will happily send you a copy.

Good luck what you decide.

toby3000

You're a responsible landlord but the house needs a new roof?!

ANYWAY, as has been said, people will be wary of buying a house with sitting tenants - I mean, from them putting in an offer you'd need to give 2 months notice and if your tenants wanted to make it difficult they could drag it out beyond that - you might know that they'd be willing to move out within a couple of weeks but potential buyers don't know that.

Brallaqueen

Caveat - if the repairs are extensive then It is a bad idea but otherwise it might not hurt to ask your tenants if they would like to stay at a reduced rate whilst you do some works. If they say no then that's it.

I know there is quite a lot of ill feeling towards LL who want to 'have their cake and eat it' but it is not always necessarily justified.

Granted, on this board we do come across a lot of poor landlords on a constant basis , those that DO want to have things all their way and not lift a finger in response so it gets to be an expectation.

A decent rent reduction, glowing references and pick of the furniture (if any was provided) might go a long way to getting an agreement.

Windsorcastle

pmlindyloo wrote: »

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

Thanks for this. Yes, the tenants are aware - in fact, it was they who asked me if I would redecorate for them about a year ago but then they changed their minds as it wasn't a good time for them so I put it off. The roof is a flat roof and I have had it repaired many times but it continues to leak sometimes which is why I thought I should replace it.

Windsorcastle

toby3000 wrote: »

You're a responsible landlord but the house needs a new roof?!.

I'm being responsible in replacing it! It's a flat roof and has had various repairs and I'm sure wall know what a nightmare they are. So I was planning to replace it or even get a pitched roof instead.

Windsorcastle

Brallaqueen wrote: »

Caveat - if the repairs are extensive then It is a bad idea but otherwise it might not hurt to ask your tenants if they would like to stay at a reduced rate whilst you do some works. If they say no then that's it.

A decent rent reduction, glowing references and pick of the furniture (if any was provided) might go a long way to getting an agreement.

Really useful advice, thanks. I would be more than happy to offer the tenants a considerable rent reduction, even up to 50%, rather than just have the property sitting empty whilst I pay the mortgage. I think I may as well suggest it to them and they can always say no, as you say. I've also thought of advertising for one of those 'building guardians' who stay in a property for a cheap rent on teh understanding that they'll move out once it's sold.

franklee

Windsorcastle wrote: »

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

Seasoned landlords ... shouldn't you be asking the tenants?
Basically tenants are individual people so what works for one won't work for another.

As a seasoned tenant I'd not be wanting the hassle of a new roof no matter what the price. Others may vary.

Kynthia

I think it 's good that you've discussed the situation with your tenants and want to keep them happy.

I think you might be underestimating the effect tenants have on selling a property as the can restrict viewings, not show it off to it's best and not move out in demand which delays completion. This isn't necessarily tenants being difficult as they are enetitled to do these things.

Also it's possible your tenants are being naive or very clever asking for another fixed term when they know you are planning to sell. They could wait until you've decorated and then refuse viewings and not leave until you evict through the courts, which would be a few months after the new fixed term expires.