Going from owned to rented - how long before exchange did you view rentals?

pinkteapot

We're relocating, so want to rent first and explore where's best to buy. We're in the process of selling our house (offer accepted, survey done, legals going through).

Obviously we won't sign a tenancy agreement until we've exchanged.

However, I'm finding things really anxiety-inducing. Last time we moved we were middle-of-chain, buying and selling, and I thought that was stressful, but this seems worse! My panic is about the fact we're trundling towards the date we get chucked out our house, and at this point we have no idea where we'll be living.

So, when doing the same, how long before exchange did you view rentals?

We were thinking of doing it a few days before expected exchange date, but has anyone done it any further in advance? What we're also wondering is whether anyone's had luck getting letting agents to accept a holding deposit for a few days / a week, then signing once exchanged (we're aware we'd lose any such deposits if the sale falls through).

The area we're moving to has a very small, pretty slow rental market. Most houses seem to be advertised for some time, even though there are very few available. Due to the number available, I'm panicking about getting to exchange and there literally being nothing!

Any advice? Even if it's just to calm down as it'll all be fine?! :rotfl:

Throwaway1

The best idea is seeing if places will accept an holding deposit. Depending on how much money you have to burn you could always rent somewhere in advance to start around the time you are expecting to complete and then you may lose a month's rent if exchange/completion is pushed back but you definitely won't be homeless. Are there any caravan parks around where you want to move to? It might sound daft but I know of 3 people at my work who all temporarily lived in caravans in order to break their chain (one ended up living there for 3 months over winter as their new build completion kept being put back and back). Do you have any family you could move in with if push comes to shove? How flexible does your buyer appear in terms of completion dates? Do you have jobs to consider or could you move somewhere random for a bit before moving to where you ideally want to be?

pinkteapot

I would desperately love to just rent somewhere now so we know it's secured! We wouldn't mind paying rent and mortgage for a bit longer if the sale got delayed, but the obvious worry is the buyers pulling out, and then at this time of year we may not get another buyer until into the new year - so at worst we could end up forking out for a full six-month tenancy and either not using it, or leaving our owned house empty. So we're being sensible and waiting but it's stressing me out!

We don't have family in the new area, but could stay with family in our current area (then move up later). Slightly complicated because we have pets, but it's do-able. We also have stuff filling a large house (though we're having a big clear-out!) so the storage bill would be sizeable. Still, worth it to get the sale done so we can then go as soon as a rental comes up!

Because of the pets, I'm not sure if caravan/holiday homes would work... There might be some options.

Maybe it is worth starting to call letting agents in the coming weeks and asking what, if any, holding deposit policy they have - eg how long they'd hold a property for. As I said, it's a relatively slow-moving rental market so that may actually make it a bit more flexible than other places...

pmlindyloo

We did exactly this. Rented in the area before we bought. It is an excellent idea (if you can afford it!) as it gives you time to look around for your perfect house.

We ended up buying our rented house so it was fairly straightforward but you should be aware that buying a house when renting is also a bit of a nightmare as you shouldn't give notice to end your tenancy until you have exchanged on your new house.

To be honest, there is no easy way so hope you have a 'buffer' in the way of money!

We had the opposite problem to you as rental properties were snapped up really quickly - probably worse in this respect since the landlord's were in the habit of entering a biding war as regards the rent if multiple people wanted their property!

Enough about my story.

You really have two options.

Look at rental properties a few days before 'expected exchange' and put down a holding deposit. Usually landlords do not expect deposit/rent until nearer the move in date. As you know if you don't go ahead you lose your holding deposit.

Ask for a 4 week period after exchange and completion (do make sure your solicitor passes this on to the buyer - ours forgot!) as this will give you a little more time to find a rented property.

Your choice really - if rented properties are few and far between then the first option is probably the best.

Just be prepared to book into a B&B/hotel and put your stuff in storage in case things go 'belly up'. I'm sure they won't. Having contingency plans does take the stress off so have all scenarios covered and relax!!!!

Loopyloopz

We had the same stress when we sold and moved to another county. We found that agents were not keen on considering us until we had exchanged. We had 4 weeks between exchange and completion for this reason. Also an area that didn’t have many rentals that suited our needs (it actually borders another county, so weren’t 100% which county we would end up in). It was definitely stressful. We had viewed a couple before we had exchanged, they weren’t suitable to us, but also went before we could have comitted anyway. We just watched the rentals and saved anything that was suitable in the hope it was still available when we could commit). As soon as we exchanged we viewed one that had just come on and filled out the paperwork. We definitely needed the 4 weeks. Don’t forget to allow for booking removals, we nearly did as we focused so much on the rental!

Once we found a house we did the paperwork and were approved in a few days. Hoping it all comes together for you!

eddddy

Explain your situation to letting agents and see what they suggest.

Maybe propose, that if you find a place you like, you'd like to get the referencing dealt with, then sign the rental contract on the same day that you exchange contracts on your sale. (Referencing might take a week or so.)

I recall that a letting agent I spoke to was happy with that.

Although it might be different if you'll be renting in a hot-spot like London.

pinkteapot

Thanks! Buyer and their buyer already aware we want four weeks from exchange to completion.

pinkteapot

eddddy wrote: »

Although it might be different if you'll be renting in a hot-spot like London.

It couldn't be more opposite to London. :rotfl: