Rent it out whilst up for sale?

jetsetwilly_2

I start a new job in Sept and need to relocate.

My house is up for sale but no takers yet.

If we don't sell by the end of July, we will have to find somehwere to rent in the new city.

This wil leave us pretty broke, paying for mortgage and renting.

I am debating renting out my current place, mortgage provider is happy to do so. However, is this going to be a pain with still trying to sell it? Am I better off taking the short term hit and leaving it empty?

monty-doggy

The problem with this is you'd need to let it out for 6 months initially, and then if the tenant doesn't move out when you give notice, it can take a long time and a lot of money to get them out and could potentially cost you the sale. I think there are ways round the six months, but its unusual.
Can you afford to take a small drop in asking price rather than leave it empty?

scottishblondie

A tenant could make it very difficult to sell. The tenancy would have a minimum term of 6 months. They don't have to let any prospective buyers view the property, and if you do receive an offer you would have to follow the proper procedures to end the tenancy before any buyer would exchange. If the tenant wants to make it difficult, this could take months. In the meantime you would be a proper landlord - gas safety certificate, protected deposit, maintaining the property and paying tax on the rental income.

I would just take the hit and leave it empty.

BitterAndTwisted

Sell while it's vacant.

Ask yourself this:

Anyone wanting to buy with a mortgage will not have the funds released until there is vacant possession. Meanwhile the minimum tenancy-term where you can legally evict is six months. Do you know anyone wishing to buy a property who is willing to wait that long?

Given the costs of securing a tenancy plus moving expenses how attractive would it be for a tenant to be in your property for six months only to have to go through precisely the same expenses all over again?

Tenants have the right to claim "quiet enjoyment" and are therefore entitled to deny you or your agent access for viewings, so how are you going to secure a buyer in such circumstances?

Smith_007

jetsetwilly wrote: »

However, is this going to be a pain with still trying to sell it?

Of course it is ! :rotfl:

Also, what kind of lowlife landlord takes on a tenant, only to turf them out just a few months later?

Very good friends of mine moved into a house whilst 3 months pregnant...... They were promised a long term rent and it was an ideal home to bring up their child.

4 months later the landlord decided to sell and issued a section 21 to turf them out of their home. The farther in question (the nicest chap I have ever met) promptly drove round the the landlords house and broke his nose :eek:

grifferz

Smith_007 wrote: »

Very good friends of mine moved into a house whilst 3 months pregnant...... They were promised a long term rent and it was an ideal home to bring up their child.

4 months later the landlord decided to sell and issued a section 21 to turf them out of their home. The farther in question (the nicest chap I have ever met) promptly drove round the the landlords house and broke his nose :eek:

Then he was a bit of a selfish idiot wasn't he, potentially getting a prison term just as his partner is about to give birth.

Hard to see how breaking someone's nose would be justified at the best of times, let alone without any information as to why the landlord in question wanted to sell. For all your friend knows there could have been dramatic personal circumstances forcing a sale - which is a completely legal thing for the landlord to do, giving the proper notice etc.

Smith_007

grifferz wrote: »

Hard to see how breaking someone's nose would be justified at the best of times

Good heavens!
I'm certainly not advocating what he did! :eek:

grifferz wrote: »

For all your friend knows there could have been dramatic personal circumstances forcing a sale

Such as being 2 months from giving birth?

The point I wished to make is that being a landlord carries a social responsibility that the original poster appears not to have thought about. Playing with tenants homes on a short term financial whim is unethical, even if it is legal.

Werdnal

jetsetwilly wrote: »

I am debating renting out my current place, mortgage provider is happy to do so.

But have they confirmed what they will charge you for this? Extra monthly payments? Set-up fee etc? Rarely do they do it for free!

Then you have to change insurance to a Landlord policy. Get gas safety check, and EPC (assume you may already have one as you are marketing to sell).

You will have agents fees as you are too far away to manage it yourself. And you will have to declare your rental income for tax.

Then you cannot evict anyone within 6 months of the start of their tenancy. Tenants can refuse all bookings to view, use and abuse the place so it is in a far worse state to try to sell it, and buyers with a mortgage cannot exchange on the property until you can confirm vacant possession - takes atleast 2 months to get tenants out, and that is if they leave willingly on receipt/expiry of your notice and you don't need to take them to court.

A few years ago I was trying to sell my flat. It was already on the market when I was approached by a chap desparately looking for s short-term let. He passed credit checks and referencing, and assured me he would do everything he could to co-operate with viewings. Once he moved in though, total change, and he totally refused to allow any access by the agents, caused damage to the property that I had to put right before I would continue marketing it, and when I finally got him out at the end of his 6 month tenancy, he left owing 2 months rent!

Moral of the story is, NEVER try to sell with a tenant in situ. If you want to sell, drop the price ... things are moving on the selling front, but your price may be the stumbing point.

Care to post a link for Rightmove so we can cast an eye and advise whether anything obvious is holding back your sale?

Gavin_Clay

Sorry to hear your struggling to sell jetset. You got several problems that will occur either way you choose.

Renting is not as easy as it sounds.

First question I always ask who's my ideal tenant and how much would they be willing to pay?

1.You will need to get consent to let
2.You will need to change insurance
3.Find a Good agent.
4.Have you got funds aside for damages/faults?

Selling the property
Can you afford to wait 6-9 months with your house empty?
Can you drop the price?
Can you change Agency?
You must let the insurance company know its empty.
Some councils charge council tax from day 1 being empty(not the previous 6month rule)

If you have anymore problems feel free to contact me

Gavin Clay

jetsetwilly_2

Ok, very clear message supports what I thought.

My place has been up for sale only 3 weeks and had 5 viewing so not terrible (my last flat had 4 viewings in 2 years).

I am happy that the price is about right etc. It is only the fact that I have to move in August that is making me desperate to sell faster.

Cost wise, renting a cheap place and paying the mortgage here is just about affordable in the short term, but should it go on beyond 5-6 months, maybe my savings would have been eaten into.

http://www.rightmove.co.uk/property-for-sale/property-42175850.html

This is the place

Thanks

I_have_spoken

This is the place

Needs a good de-clutter in kitchen, improve kerb appeal some brighter pics IMHO. Selling in the summer doldrums will be a challenge; a drop of £2,500 or £5,000 and a big push by the EA for a 'open house' day may get you an offer.

I'd be thinking about bridging finance so you can get a place in the new city, otherwise you'll be paying rent for 6-months which is 'dead money' and two removals.