How to end Tenancy

Spendy_no_more

Hi all,

Been reading through some threads and there's a wealth of knowledge here so thought I'd ask a question I have. I'm a Landlord and been renting out a property for over 3 years now. First 3 years were a new tenancy each year but now we're on a rolling contract. I am now looking to sell the property. As it's now a rolling tenancy, do I need to serve a S21 or can I just give them notice? I was also thinking of letting them know I'm going to be selling so they can start to make plans etc but not officially give them notice until we accept an offer. It's always been very amicable so am not expecting any problems but just wanted to understand the proper way to move forward with a rolling tenancy in place.

Thanks all.

Mutton_Geoff

Spendy_no_more said:

Hi all,

I was also thinking of letting them know I'm going to be selling so they can start to make plans etc but not officially give them notice until we accept an offer.

Have your cake and eat it? You won't know how they'll behave until you serve notice. You plan to take their home away from them, this greatly changes the dynamic.

sammyjammy

You'd need to issue a valid S21, this is notice of intent.  It would be better if you ensured vacant possession for new owners before you accept an offer.

RHemmings

Thinking as a tenant, I would appreciate knowing that the landlord plans to sell the house. The tenants will have to know when viewings start, in any case. I wouldn't be happy about having to move, but am hopefully mature enough to understand that these things happen. 

You could offer to the tenants that they can also start looking for a new place to live, and that you'd be flexible about notice should they find a place and want to move. 

I agree with @sammyjammy that having vacant possession would be an advantage for new owners. I would be very hesitant to buy a property with a sitting tenant because if they dig their heels in it could easily be six months before they are out, damage may have been done to the property, etc. Remember that you know your tenants and have vetted them, but potential buyers have not. 

doodling

Hi,

Spendy_no_more said:

Hi all,

Been reading through some threads and there's a wealth of knowledge here so thought I'd ask a question I have. I'm a Landlord and been renting out a property for over 3 years now. First 3 years were a new tenancy each year but now we're on a rolling contract. I am now looking to sell the property. As it's now a rolling tenancy, do I need to serve a S21 or can I just give them notice? I was also thinking of letting them know I'm going to be selling so they can start to make plans etc but not officially give them notice until we accept an offer. It's always been very amicable so am not expecting any problems but just wanted to understand the proper way to move forward with a rolling tenancy in place.

Thanks all.

Giving notice, if it is not in the correct form referencing the correct ground under the housing act has zero legal meaning and tenants can choose to ignore it.  The only way the landlord has to end a tenancy is to start by serving a formal legal notice e.g. a S21.

Letting your tenant know that you will be selling is a sensible thing to do, with most tenants, the more notice you can give, the smoother the process goes.  You can make things easier for the tenant by agreeing that you will not insist on them giving the legally / contractually required notice for them to terminate their tenancy and that you will only charge pro-rata rent for any part rent periods.  That means that they can easily take on a new tenancy without ending up paying two sets of rent.

Whilst most tenants will be accommodating of viewings, some may choose not to be.  That would make selling the property impossible before the tenants have gone.  Note that even if there is a clause in the tenancy requiring that the tenants permit viewings (a) the tenants can ignore it with very little legal comeback and (b) it almost certainly won't take effect until you have issued a S21 (or the tenants themselves have given notice).

You can choose not to send a S21 until you have accepted an offer (this is the"have your cake and eat it" approach) but your tenants may choose not to allow viewings until you have issued one.  Even when you have issued a S21, it could be over six months between issuing the S21 and getting your property back (e.g. if the tenant points out that your S21 is invalid on your first attempt).  Due to this uncertainty, many buyers will be wary of making a commitment to a property with a tenant still living there (e.g. they make not make an offer or may make an offer but wait until the tenants have gone before instructing solicitors or having a survey).  Of course, if the housing market is strong in your area then this is less of a concern whilst if the market is weak then it may mean you don't get any offers at all until the tenants have gone.

Albermarle

You could offer to the tenants that they can also start looking for a new place to live, and that you'd be flexible about notice should they find a place and want to move. 

With the current state of the rental market in many areas, this could be a long drawn out process.

RHemmings

Albermarle said:

You could offer to the tenants that they can also start looking for a new place to live, and that you'd be flexible about notice should they find a place and want to move. 

With the current state of the rental market in many areas, this could be a long drawn out process.

Exactly. Let them start early and be ready to move quickly if an opportunity presents itself. 

Voyager2002

Start off by deciding whether you want to sell to another landlord, or to someone who wants to live there themselves.

In some ways selling to a landlord would be ideal: minimal disruption to everyone. You have your accounts and can demonstrate that your sitting tenants pay regularly and have not caused damage; they could stay there and just pay rent to someone new; the new landlord has no need to look for tenants. However, that does limit the number of potential purchasers there are.

OTOH if you are going to sell to someone who wants to live there, you need to offer vacant possession. So that means that you have to give notice and help your tenants to leave; then market your property seriously; and so there will be a period when it is empty but still yours.

Martico

Do you think the current tenants would be able and willing to buy the property?

propertyrental

* eviction requires a S21 notice followed (assuming the Ts remain) by an application to court. S21 on its own does not end the tenancy nor require the T to leave - only a court can do that

* marketing with Ts still in situ will put off many buyers

* finding a buyer and then serving a S21 may lose you the buyer due to the potential timescales

* things may be amicable, and they may be great Ts, but when they are losing their home of 3 years, they may not go along with your plans - through no fault of their own

secla

I rented a place for 10 years when the landlord suddenly told me they were selling. I was a good tenant, paid on time, didn't cause damage or complain about all the little things etc.  But I had a young family going to a local school and a dog so finding a house that worked for us wasn't as quick as the landlord would of liked and the relationship went down hill pretty quickly when i gave them specific times for viewings and wouldn't let them do viewings when i wasn't available. 

If the tenant knows there rights and a little about tenancy law and digs there heals in your in for a longer wait than most prospective buyers will appreciate, Im sure you have seen that people are struggling to get rentals at the moment.The wait to get a property back can be a long one,  2 months for a section 21 to expire, set a court date then wait and see if you have all your ducks in line and can actually force an eviction. If not back to step 1

In my opinion the best way to do it is give advance warning of your plan to sell, Be as flexible as possible with there notice period when they find another rental and dont market until you have vacant possession. unfortunately most landlords go for the above mentioned "have your cake and eat it approach" of rent being payed while looking for a buyer.