Selling a property with a tenant in the property

Sportyrich2000

Recently I have been chatting to my partner about selling my rental property. As expected I have suddenly been bombarded with adverts on Facebook for companies that buy and then sell properties with tenants in situ! I am considering this as an option but looking for opinions and maybe experience of doing so. The tenant I have in is lovely and isn't paying anywhere near the rental income I could get but I'm a sucker for nice people. I am concerned that she would instantly be evicted by the new owners which makes me feel guilty. Also the adverts I have seen are Facebook adverts and that instantly gets my heckles up. Is this a good way to sell a property? Does the tenant have any protections at all? Does anyone have knowledge of good companies that do this (rather than Facebook companies)?

El_Torro

The tenant does have protection, whether the advert is on Facebook or not is irrelevant to the protection they have. Especially with new legislation it's becoming harder to kick out a sitting tenant, though kicking them out because the landlord wants to live in the property is still a valid reason for eviction. The tenant can delay their eviction, depending on how awkward they are feeling. Ultimately though if the landlord wants them out they'll be gone soon enough.

If someone is buying a property with a sitting tenant then I think it's unlikely they will want to kick them out straight away. If they're going to do that why not just buy a property that does not come with the added complication of a tenant? However I think most landlords would want the tenant to pay market rate rent. If the tenant is unwilling / unable to do that then I imagine they won't be staying in the property for long.

Grumpy_chap

Market value with tenant Insitu is less than with vacant possession.

subjecttocontract

• You won't achieve market value on the property by selling it with a sitting tenant.
• Even less if that sitting tenant is not paying market rent.
• You would probably only be able to sell to cash buyers as no mortgage lender will lend without vacant possession.

fatbelly

Why's this in Motoring?

Okell

https://forums.moneysavingexpert.com/discussion/comment/81868910#Comment_81868910

Quite.

For best advice it needs to be on House buying, renting & selling — MoneySavingExpert Forum

ElefantEd

https://forums.moneysavingexpert.com/discussion/comment/81868910#Comment_81868910

Maybe the rental property is a caravan?😁

user1977

The new landlord would have no more and no less right to evict the tenant than you currently do.

noitsnotme

Also the adverts I have seen are Facebook adverts and that instantly gets my heckles up. Is this a good way to sell a property?

There is nothing good about Facebook adverts!

UnsureAboutthis

There is a good chance you could get more, ie, if the people renting the place have been there for a while, are pleasant, paid on time, looked after the place and the property is in an ok/nice location. However, along with the aforementioned, the new buyer will be looking at the service charges, current and historical, looking for any works on the block and potential costs, and the rental returns percentage-wise.

Having stated the above, the new landlord would have to pay an extra 3/5% stamp but won't

have to pay the extra is your property is 40k or less.

Therefore, there is a good chance you may get more if the rental yield is good, service costs are low, place is in a nice/ok area, and the renters are settled and like good LL's the renters are good renters.

To sell with vacant possession, often it will sell more quickly.

I've yet to meet a decent estate agent but these places always sell

places with renters in it - I'd avoid so-called specialist firms; just look around the area someone

who has the most sold boards up, Research them, and if likely, go for them but read their T&Cs.

about if you move to another agent/fees/small print etc

born_again

https://forums.moneysavingexpert.com/discussion/comment/81868910#Comment_81868910

If only people reported them?