Landlord selling house with tenants in situ

James1352

Hi,

I'm an amateur, accidental, and rather reluctant landlord. I own a small house which I inherited and rented out to friends of the family almost two years ago. The contract was an AST for one year and I didn't take a deposit because the tenants have invested quite a lot of their money into the house and garden. It's a semi-detached house and there's a bad neighbour next door, but the tenants can handle her and have no desire to move out for the foreseeable future. Rent is paid on time and I have no issues with the tenants.

Basically, I don't want to be a landlord any more because I don't enjoy dealing with the issues that crop up now and again. Also, I'm considering a move out of the area. I suppose I could hire a company to manage the property, but it doesn't seem worth it because it would reduce the small amount I get every month. I have no desire to evict the tenants, especially because they've invested so much of their own money into the house, so selling the place with them in situ would be good.

I'm going to talk to a couple of local estate agents soon but I wondered if anyone has any advice?

Thanks!

Comms69

Just be aware you will have a limited market

G_M

Comms69 wrote: »

Just be aware you will have a limited market

....and consequentially a reduced price.

But a decent agency will advertise it as a BTL, and may know local landlords.

I would visit more than two agents though, and focus on estate agencies that also have a lettings department.

phill99

You certainly wont get as much as you would as if it was with Vacant Possession.


Auction may be an option.


While you are being very honourable with your tenant in terms of not wanting to evict them etc, any new landlord wont necessary have your morals and evict them as soon as he has bought it.


You may be better to be upfront about this with your tenants and at least they can make informed choices.

MovingForwards

Would your tenants like the opportunity of buying it? Saves paying estate agents fees and you could sell it a little cheaper because of the saving.

hb2

MovingForwards wrote: »

Would your tenants like the opportunity of buying it? Saves paying estate agents fees and you could sell it a little cheaper because of the saving.

I was also going to say this. At least give your tenants the option of buying and reassure them that you will not be giving them notice if they don't/can't buy.

[Deleted User]

You could offer your tenants a sum of money in recompense for what they have spent on the property if they will move out. Presumably what they have done has increased the value of the house to some degree or made it more saleable.

Would make things a lot easier if they would move out, and more honourable to give them something back for what they have done. There is nothing saying you have to do this, of course.

Cakeguts

Offer it to the tenants. You can give them a discount to allow for what they have spent on the property.

[Deleted User]

I think there is at least one mortgage lender who will accept gifted equity from a landlord as part/all of the deposit but don't ask me who because I can't remember.

boliston

a lot will depend on the unexpired term - if there are still several years of the tenancy to run then you would have to sell with tenant in situ whereas if only a few months left to go then go for vacant possession