Same property listed in both Sale and Rental

jazzfriend100

Good morning.
As a potential investor i've been spending time comparing sale prices and rental prices in the same areas through the common websites such as rightmove and zoopla. I've begin to notice that i'm often seeing the same property listed in both searches, is this suspicious and posted in order to entice an investor or is there another more innocent reason?

Thank you.

[Deleted User]

There's a more innocent reason.

ReadingTim

Suspect it means that the vendor will sell it if they can achieve a certain price for it, but rent it out if they can't.

Comms69

Chances are it's a BTL landlord who intends to sell an investment and it's much more attractive on that front if it's tenanted already.


Conversely of course it limits the market for any residential sales.

SmashedAvacado

Comms69 wrote: »

Chances are it's a BTL landlord who intends to sell an investment and it's much more attractive on that front if it's tenanted already.


Conversely of course it limits the market for any residential sales.

I don't agree with this. I think its much more likely a seller wishing to achieve a particular price but not in a hurry to sell and if a renter comes along that will pay a reasonable rent, the owner will hold the property.

Comms69

SmashedAvacado wrote: »

I don't agree with this. I think its much more likely a seller wishing to achieve a particular price but not in a hurry to sell and if a renter comes along that will pay a reasonable rent, the owner will hold the property.

potentially. But a tenanted property will never attract a residential buyer. I don't know many people willing to wait 12 months to move into their new home (and that's a minimum)

SmashedAvacado

Comms69 wrote: »

potentially. But a tenanted property will never attract a residential buyer. I don't know many people willing to wait 12 months to move into their new home (and that's a minimum)

Yes - so presumably the owner makes a choice to sell it or to let it (mutually exclusively rather than both). If they get a sales offer, they don't let it out. And potentially vice versa

Cakeguts

Sometimes it is because the seller can't get the price they want.

need_an_answer

I dislike these types of listings simply because it unfair on the potential tenant.

It smacks of a seller who only wants a certain price and is therefore prepared to list their property for rental whilst they hope to seek that price and obtain a tenant who is prepared to do all the viewings and effectively cover the costs that should really be those a LL would expect in a void period.


Seller trying to have cake and eat it in my opinion.


Most of the tenancies are for an initial 6 month term and after that its fairly certain that whilst on a periodic rolling contract the tenant probably isn't particularly secure beyond the notice periods.


a seller is often told by the agent that a tenant will leave when their allotted section 21 is issued...some will but as we all know a section 21 is just the start of the eviction process....


As a buyer,unless you are prepared to wait for many months to exchange/complete you probably are best avoiding something that has a tenant in....and as a tenant I personally wouldn't enter into a contract with a LL to find my next home knowing that the LL wasn't actually that invested in me being there as potentially the goal is to sell and offload both the property and the tenant.


I'm a LL and have in the past bought with established tenants in situ...I'm also potentially about to start the process of buying something where there is a completely deluded seller who thinks his current tenant will be out in 6 weeks following section21....
I wouldn't say that even as an investor you should take on an existing tenant (unless you really want to) so its not something to make it more appealing to investors...its a greedy seller IMO!

jazzfriend100

Thanks for this. Do you think the rental price the seller is listing is a remotely accurate gauge of rental yield for the property?

pulliptears

This happened with the house we ultimately bought. It was listed for rental as well simply because the sellers had no interest in it when it was up for sale so decided to use both options (they moved out of area for work)

Ultimately the day we found the property a let had been agreed for 12 months so we had to wait.