Offering tenants opportunity to purchase property

[Deleted User]

I want to offer my tenants the opportunity to purchase the property before I list it with an estate agent.

Does anyone have experience doing this? Pros ,cons etc.

Many thanks.

Guest101

Well ask them if they even want it surely?

hazyjo

You save on fees.


They save on moving costs and the hassle of viewings (if they're willing to let people in!).


Will you be serving them notice if they can't buy it or selling with them in situ?


Jx

freeisgood

My friend bought the flat she was renting, landlord offered her first refusal, she was thrilled to buy it.

welch9

I was actually asked by my tenant if I was willing to sell to them

harrys_dad

Do you manage it yourself? If you use an agent the contract is likely to contain a clause making you pay them a fee for selling to the tenant.

BlaEm

Do you have a good / direct relationship with them? Have they ever mentioned an interest in buying your property?

If they've never expressed such an interest, then you need to approach carefully - they may be worried that if they don't take you up they'll be faced with an eviction, if you then wanted to sell to a third party with vacant possession.

First thoughts are - you will still need to agree on a value, so as a first step still approach 3+ Agents to conduct a valuation. You can use this to negotiate with your tenants.

chanz4

guarantee you will have to pay the agents a fee for them buying it

The_Logans

We sold our previous rental property to our tenants. It was a bloody nightmare! They had expressed interest previously, so when it came time to sell it we gave them first refusal. We got prices from different EAs, agreed on the middle value and went from there. It took ages, and they kept finding reasons to delay and knock the price down. They really had us over a barrel.

kinger101

I think there was a case involving Foxtons where a judge decided a clause demanding money for selling a property for a tenant was unfair.

EDIT: Update to the above;

http://www.bailii.org/ew/cases/EWHC/Ch/2009/1681.html

Read 102-105 in particular.

Seems a sales commission within a letting contract would be regarded as an unfair term.

G_M

If you used an agent to find and/or manage the tenants, then read your contract with the agent.

You may have to pay them a sales commission.