How can I keep tenants happy AND sell the property?

PasturesNew

Windsorcastle wrote: »

...I haven't raised the rent in the 3 years they have been there. ...

In many areas rents are lower now than they were 3 years ago....

tbs624

Windsorcastle wrote: »

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.

The fact that you haven't raised the rent is probably the main reason why you have managed to hold on to your reliable Ts. Experienced intelligent LLs will forgo annual rent rises for precisely that reason - no expensive voids, no hassle looking for new Ts, no worrying about whether new Ts are going to turn out to problematic and so on.

The lack of rent increase has been beneficial to both you and your Ts. However, if you have mates who think that its acceptable to contrinue to charge full rent whilst expecting current Ts to tolerate the noise/mess & general inconvenience of repairs/redecorating etc plus the gross interuption of viewings from potential purchasers, then their "advice" is poor.

If you really intend to try to sell whilst the Ts are in occupation then you absolutely need the Ts "on side". As a previous poster has said, any buyer dependent on a resi mortgage will need there to be vacant possession before exchange of contracts.

You of course don't have to agree to signing up to a new Fixed Term if you prefer not to - you could concentrate on making a financially attractive deal with the Ts and providing them with appropriately excellent references to ease their finding of a new home.

xylophone

I wouldn't want to be a tenant while extensive repairs/renovations were carried out, much less put up with the inconvenience of viewings.
Surely far better for everybody if your tenants are given notice, you sort out the appropriate insurance, get the work done and then sell?

mcc100

Windsorcastle wrote: »

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.

Who are these other people ?

You don't seem to realise that in many areas both rental values and house prices have fallen in the last 3 years.

Tell these other people that they live in cloud cuckoo land.

Lavendyr

Windsorcastle wrote: »

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.

Clearly these "other people" do not realise the value of a reliable, long-term tenant! To put you in perspective, we have been in our rented accommodation for far longer than this and our landlords have not put the rent up once.

As a tenant, if you want to access the property to carry out such significant works, I would expect you either to compensate me or to provide me with alternative accommodation of an equivalent standard while the works were being carried out.

As for viewings, I would want to give you a set of reasonable times to carry out viewings (e.g. Saturday afternoons between 2-4pm, weekdays between 9am-5pm) and would expect you to take personal responsibility for my personal contents while in the house and ensure that you locked up properly behind you.

Personally I do agree with those who have said that you want to have your cake and eat it. I would strongly suggest you have the property vacant and have the work done before you market it for sale. It will make the property far more saleable (people do not like buying when tenants are in situ as they will not exchange until tenants have vacated and tenants can drag this out for a significant length of time).

Windsorcastle

Thankyou very much to everyone who has given constructive advice and tenants' viewpoints as well. I do always appreciate the advice that you can get on MSE forums from others, even if it's not always what I want to hear!