Selling a Rented House

tamiami

If a house has tenants and they have been given their 2 months notice via the letting agency, when is the soonest it can be put on the market? Do you have to wait until the house is vacant first?

kinger101

You can put it on the market now but;

(a) tenants may not actually move out on expiry of notice, in which case you'll need to get the courts to evict; and
(b) tenants may not comply with requests to show prospective purchasers around property. There's sometimes a clause in the contract permitting this, but if the tenants still refuse, then this becomes a problem.

How good is your relationship with the tenants? Are they in a position where they can easily rent another place?

The property may attract more buyers, and possibly command a higher price, once you have vacant possession.

EDIT: I, for one, wouldn't bother looking at a house with tenants in.

tamiami

Thank you for your reply.


The tenants are very respectful and the house is in a good area, there will be no problems with eviction etc. I have not actually spoken to the tenants myself as it is all arranged via a letting agency. They were looking for long term rental but unfortunately I cannot maintain the house any longer, it is no longer financially viable for me therefore the intent to sell.


Could I have a for sale board put up for marketing purposes but with no viewings until after 28th February?


The current letting agents are not being very helpful, probably because I rented it long term but on a 6 month rolling contract, and they feel I have let them down maybe.

kinger101

If you've got tenants willing to leave on the expiry date, who keep it well presented, it might not be such of an issue. It might just be a matter of checking what the contract says, and seeing whether they are OK with potential purchasers being shown around.

The problems tend to arise where tenants won't leave, won't allow viewings, or the LL has an unrealistic expectation that tenants will maintain the property in showroom condition.

On balance, I'd say stick it on the market then. Although you may get offers, be aware that any solicitor worth his salt would advise prospective purchasers not to incur any expenses (e.g., surveys) until the property is vacant. So the process may stall until the tenants have left. If your tenants do agree to viewings, you will still need to give them reasonable notice. It would be very unwise to allow someone to view without their consent. Make sure your EA understands this too. They have been know to let themselves in unannounced.