Rent reduction to permit viewings?

Bananamilk_2

Do other LLs offer tenants a rent reduction while the flat is on the market, in return for the inconvenience of allowing viewings, surveys etc?

My AST contract with my tenant has the usual clause about them permitting this in the last 2 months of tenancy, which we're about to enter, but it's the goodwill I want to promote; I don't want them to be doing it with bad grace or making it difficult.

The rent is £800 a month. I was thinking I could drop it by £80 a month (10%) or is that too generous or too mean? Or would I be better to offer a £20 a time rebate for any viewings?

Can any more experienced LLs tell me what they would do/have done? I think I'm inclined to be a bit too generous...

G_M

The 'usual clause' is only of use if the tenant believes you can enforce it. You can't.

You are totally dependant on the tenant
a) agreeing to allow access
b) keeping the property in a suitable condition for viewings

Either you do this on a goodwill basis, or you pretend your clause is valid and demand the tenant keep th place tidy, or you offer a discount.

Personally I would do none of the above. Apart from the issues outlined, most buyers are reluctant to view, far less negotiate price, and never Exchange, on a tenanted property.

They know, just as you do, that the tenant may not leave when asked. The sale may drag on, the property may be trashed.

Only another landlord will be interested, and at a reduced price.

End the tenancy, clean, tidy and repaint the property, then place it on the market for sale.

Bananamilk_2

Thanks G_M, I hear what you're saying, and I know you know what you're talking about from other posts. But are there no LLs out there who have managed to get an offer while the property is tenanted? I know that no-one will exchange until it's vacant - I was going to serve the S21 now to give notice of my intention to possibly retake possession in 2 months time, but then could allow them to stay on a week by week basis after that, as this is what my tenants have requested while they find another place - it's because I feel bad kicking them out, not because I'm trying to hang on to the rental income. I would be happy to take back possession tomorrow to ensure a smooth sale. Would it not be enough for buyers to know at this stage that an S21 has been served and that I can promise vacant possession before exchange?

Bananamilk_2

I am going to conduct all viewings myself if that makes any difference. That way I'm in control of what the potential buyers are being told, and I can see whether the tenants are keeping the place neat and tidy.

martinsurrey

Bananamilk wrote: »

Thanks G_M, I hear what you're saying, and I know you know what you're talking about from other posts. But are there no LLs out there who have managed to get an offer while the property is tenanted? I know that no-one will exchange until it's vacant - I was going to serve the S21 now to give notice of my intention to possibly retake possession in 2 months time, but then could allow them to stay on a week by week basis after that, as this is what my tenants have requested while they find another place - it's because I feel bad kicking them out, not because I'm trying to hang on to the rental income. I would be happy to take back possession tomorrow to ensure a smooth sale. Would it not be enough for buyers to know at this stage that an S21 has been served and that I can promise vacant possession before exchange?

I'm currently waiting for exchange (to buy, as an owner occupier) on a currently tenanted house, and another house I was interested in that went to a bidding war, was also tenanted.

(it only works for me as I’m in rented while I look, so have no chain poking me to exchange quickly)

It does happen, but you and the other side need to understand the situation and the time scales, which will narrow your market.

G_M

I said "most buyers", and believe this is true. You may be lucky. There are some buyers who are ignorant of tenancy law, and assume that because you've served 2 months notice, the tenants will leave in 2 months. Their conveyancer may or may not correct them.

In the end it is your decision. I am merely letting you know the issues.

theartfullodger

Bananamilk wrote: »

I am going to conduct all viewings myself if that makes any difference. That way I'm in control of what the potential buyers are being told, and I can see whether the tenants are keeping the place neat and tidy.

Blimey: naïve or what?? Many buyers will pop back, ask the neighbours, knock on door & ask tenant: Wait till T has gone, spruce it up the market it...

Why would a tenant want to "keep place neat and tidy" when you are evicting them?? Some incentive or delay till T has gone...

martinsurrey

Yeah, you are right, it is really only people in rented who can afford the flexibility to buy houses to live in, that are currently rented.

As they don’t give notice until after exchange, which is after the tenant has moved out, with a short exchange to completion and an overlap on ownership and the end of their rental.

So the market is smaller, and more than likely to be first time buyers.

But not all of them are ignorant of tenancy laws...

RAS

Bananamilk wrote: »

I am going to conduct all viewings myself if that makes any difference. That way I'm in control of what the potential buyers are being told, and I can see whether the tenants are keeping the place neat and tidy.

Blimey.

You do realise that you are not even allowed in the house unless your tenant grants consent?

What you plan could be considered harassment if you start telling them to tidy up and not to speak to potential purchasers.

pmlindyloo

Bananamilk wrote: »

I am going to conduct all viewings myself if that makes any difference. That way I'm in control of what the potential buyers are being told, and I can see whether the tenants are keeping the place neat and tidy.

Oh dear.

The tenants are under no obligation to keep the place neat and tidy. All they have to do is return it in the same condition as when they started living there, less wear and tear.

If you want to be 'in control' then do as others have said and wait until they leave.

Basically you want your cake and eat it.

This is your tenants' home.

This is a pet hate of mine.

However, you obviously have the right to try and come to some arrangement with your tenants but please negotiate times, 24 hours notice of intent to view and offer them a substantial reduction in rent.

If they agree and you abuse the agreement then they are within their rights to refuse all viewings.

Bananamilk_2

theartfullodger wrote: »

Blimey: naïve or what?? Many buyers will pop back, ask the neighbours, knock on door & ask tenant: Wait till T has gone, spruce it up the market it...

Maybe I'm naive but if I was the tenant, I wouldn't take kindly to a buyer 'nipping back' and disturbing me to ask me anything, so I wouldn't be inclined to entertain them too far! But maybe it happens!