Should we serve notice on tenant before selling house?

Peppermintpatty

Hello

I'm looking for some sage advice! I have a mortgage-free three bed detached property that is currently tenanted through an estate agent.

I was working way for a number of years, but i'm now looking to sell the property so i can relocate and settle down near my family.

I asked the agent to serve two months notice from September on the current tenant, with a view to place the property on the market once they have moved out.

The agent contacted me today to say that they've had an idea to place the property on the market now, that the tenant would be amenable to viewings and then when the property has sold to serve the two months notice then.

I can see the benefit of keeping the house lived in, and also the income from the rental. However I have serious misgivings of (a) selling a tenanted property (b) that the tenants will be 'amenable' to viewings, i'm sure it'll be an inconvenience to them and who's to say 'when' they are amenable? It's also surely not in their interest for me to sell it as they are quite happy there.

I think it's worth noting that i am not in the local area - i currently live about four hours away so I am relying on e-mails and phone calls.

It feels like the agent wants to keep it tenanted and they are working more in their favour than mine. They were very reluctant to provide an initial valuation and it eventually took a lot of phone calls and a shirty e-mail to spur a positive response. They have told me that no-one likes to buy at this time of year, and would be very surprised if it sold during the winter months :shocked:

I have not yet appointed them as the agent for the sale and have not discussed the ins and out of it yet. But with the little contact i've had so far it's been very hard work and i'm raising my eyebrows at this new proposition.

Can anyone advise where i should go from here?

Many thanks!

BitterAndTwisted

Don't pay any attention to anything the agent tells you. They are purely acting out of self-interest.

Of course you should only have the property marketed once it's vacant. No-one would want to waste money on surveys and legal costs when they cannot be assured that the property will be vacant upon exchange of contracts. it could take up to six months and cost you a packet to gain possession if the tenants are unwilling or unable to move.

molerat

I assume that they are on a periodic tenancy and all deposit protection and prescribed information is in order ? When will the tenant actually leave ? It can take up to 6 months to remove a tenant who refuses to go. No one in their right mind will buy a tenanted property.

pmlindyloo

The agents work for you so just ask them to serve notice. You only have your word that the tenants are amiable to viewings and will be willing to move out when 'sold'.

Getting them out first is the most sensible thing to do. You are then in control. Just read a few threads on here to see what a pain it is being a tenant, having your home sold and being expected to lose the quiet enjoyment of your home.

You would be wise to visit once they have left. This will give you an opportunity to see what needs doing decoration wise and repair wise.

Your agents sound as if they want to continue to get their fees!

Mrs_pbradley936

The pros and cons are mentioned in the latter part of this thread:
https://forums.moneysavingexpert.com/discussion/5051737


When I did it the agent forgot to serve the Notice and so there was no vacant possession but luckily the buyer just stayed where he was (parents) until it was all sorted out. The selling and letting agent was the same firm so my solicitor did not pay them the commission because he went about issuing all the legal Notices as soon as it came to light. The agents did not complain.

BlaEm

I can only speak from the point of view of a buy-to-live, rather than a buy-to-let (who may actually appreciate tenants in situ!)

I've always been put off by properties with tenants, as not only is there the risk that they don't leave when they're supposed to, but there may be issues with damage etc also - I get the impression that tenanted properties often go at a slight discount to account for this risk (perhaps outweighed by the extra rent?). And, only because of personal experience of greedy landlord-or-investor vendors, I would be concerned that they was less committed to the sale and would probably avoid spending money on surveys etc until they were out. As I said, just personal experience and not at all aimed at your situation

Given that your property is mortgage free, at least it won't be physically costing you whilst vacant (assuming you can get an exemption from CT and switch the gas/elec off)

The EA is right that it's a quiet time of year with school holidays but I think it usually picks up again in autumn - people won't miss out on their dream property because of the slight inconvenience of moving in winter.

cloo

Well, I've been there. I gave notice a short time before putting on the market, but showed with tenants in situ and agreeing to viewing (I paid them a small inconvenience sum to clear out for an open day) All the advice was that I shouldn't do it, various doom mongers online informed me that my tenants WOULDN'T move out when I wanted them to and they would HAVE to be evicted and it would take SIX MONTHS.

They were partly right. I went through 5 nervewracking weeks after notice expired of my tenants drawing things out and insisting they were going to move but couldn't just yet because of X Y and Z, and thanks to web doom mongers, even though I was fairly sure of my tenant not staying so long that the sale would be imperilled, a nagging voice in my head was telling me they'd spoil everything by staying. But they left before my buyers seemed bothered about it, though they didn't send in surveyor until I had a firm date for the tenants to leave.

Selling with tenants in *is* having your cake and eating it and TBH I was lucky they agreed to move out to some friends while their own purchase elsewhere completed. I charged very low rent and they easily could have stayed and completed before I could have evicted them (the thought that was stressing me out the whole time), but I think we'd had a good enough relationship over the years that they genuinely didn't want to trash my sale, although they pushed their luck as far as they could!

Peppermintpatty

Thank you all for responding - i know you're right! I shall definitely ask them to serve notice as i originally asked, and i'll stick to my guns!

Any hints on how I can be certain that they will follow through and serve notice as requested? there seems to be few horror stories on here where that hasn't happened? I thought i'd write the request as an e-mail and ask for written confirmation back?

I'll be glad to move forward from this agent!

theartfullodger

a) Fire agent today (oh, OK, tomoorrow..)
b) YOU serve s21...
c) When tenant leaves (s21 does not end tenancy nor require tenant to leave..) THEN find the agent you want to sell the place...

dancingfairy

You could contact your tenants and discuss your plans with them. They may be happy to stay on condition you give them a discount off the rent or give them a sweetner if they move out on the day they are required (or if you agree to give the deposit back on the day they move out). Perhaps they would be happy to stay if they wanted to look around for a bit longer/wanted to buy themselves?
Or alternatively you could sell to a landlord with the tenants in situ but obviously this is limiting your market and I'm not sure how you'd find another landlord to sell to.
Frankly for an easier life (and property buying/selling is probably stressful enough) you should probably serve notice and then proceed.
df

thesaint

The agent is trying to get you money whilst your property would be sitting empty for maybe 6 months.

You should fire them immediately.

If the agent were giving you gold bars, the advice on this site would be the same.