Incentive for tenants to leave early?

catlady28

I'm buying a house that has tenants living there until the end of august. I was wondering if anyone had experience of offering a cash incentive to tenants to get them to move out a month early? I'm not sure if this is a legal thing to do and what the etiquette would be? Any advice appreciated thank you.

Werdnal

You can ask, but they obviously have a right to refuse! The offer should include their moving costs and fees to credit check and referencing if they are moving to another rented property.

Are you sure they are actually going in August? Just because their fixed term tenancy may end then, they do not have to leave until their existing LL evicts them through the correct legal channels, and this could take a few months more.

catlady28

Their tenancy actually ends in july but the notice gives them until the end of august (as the vendor has served them the notice this week). What would you say is a reasonable amount to offer? Thanks.

catlady28

Yes I fully appreciate they can refuse, I just thought it would be worth a try!

paddedjohn

catlady28 wrote: »

Their tenancy actually ends in july but the notice gives them until the end of august (as the vendor has served them the notice this week). What would you say is a reasonable amount to offer? Thanks.

Just because notice has been served doesn't mean that they will actually move out on that date, you need to step back and tell the vendor that the sale is on proviso of the property being empty by a certain date, don't complete with tenants in situ.

lindsloo

Talk to them worst they can say is no. My previous landlord went under and my home was bought at auction by new landlord, he wanted to sell vacant so offered us a cash incentive and he released the deposit early to secure property we are in now. He offered us just over the equivalent of a months rent. He told us not to worry about end of tenancy check out, I still insisted on having carpets cleaned and oven valeted with a good clean.

I was clear with the LL that I would move as quickly as reasonably possible, decent rents don't stay on the market and I wasn't going to take a dump. We were out in 2 weeks. He kept the last bit of cash back when we handed back the keys.

catlady28

Thanks for your replies. I am waiting until the house is vacant until I exchange contracts. I have spoken to the vendor and he is happy for the tenants to end their tenancy early should they want to. So do you think it would it be ok to approach the tenants directly? Should I put the offer in writing?

BitterAndTwisted

Put what offer in writing? You have said that you're not going to exchange contracts until the property is vacant. This is an entirely sensible thing to do. Your vendor's tenant could decide to sit tight until they have gone through a possession hearing and then waited for the bailiffs to turn up. If this is the case you could still be waiting to exchange contracts by the autumn. Stay out of it!

martinthebandit

Some of the responders on this thread seem to have firmly grasped the wrong end of the stick, but never mind.

If I was in the op position I would approach the tenants and explain the position to them, after all they do know they should be moving soon so I would be letting them know there will be no problems, or financial penalties for them, if they see a place they like and decide to move early.

catlady28

I meant put an offer in writing to the tenants. For example we would pay so much to you if you vacate by....
I just wasn't sure the best way to go about it.

pinkshoes

You could always send a polite letter offering to pay their fees to find another property if they'll move out before say 15th July 2013, or state that you are also happy for their tenancy to continue until their notice period in August.

That way, they know that by staying an extra month, they are losing out on having lots of things paid for!!

Alternatively, they might choose not to move out, so it could then be another 2 or 3 months after the August move out date...