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  • FIRST POST
    moneybunny123
    Selling my house with tenants in-situ
    • #1
    • 19th Jan 11, 9:36 AM
    Selling my house with tenants in-situ 19th Jan 11 at 9:36 AM
    Hi, I'm new to this forum but I'm hoping someone will be able to help me.

    I currently rent out the house I used to live in (that I was unable to sell a couple of years ago when the market first took a nosedive). A young woman lives there with her 2 kids and she pays her rent every month without fail. I want to sell my house as I have a fair bit of equity tied up in it that I want to put towards other things (I'm expecting my second baby and want to put the money to buying myself a bigger home)

    I could put it on the open market with her still living there, but feel that if she doesn't want to leave, she may make it awkward when people come to view the house. If I evict her, I wont be getting any rental income but obviously will still have to pay the mortgage - I simply can't afford to do this.

    So, I want to maybe try and sell it to an investor who will buy the house knowing that there is a good tenant who pays regularly and takes care of the place. A sound investment! Is there anywhere, an Agency for example, that specialises in selling rentable homes with tenants in-situ?

    Thanks in advance.
Page 1
  • poppysarah
    • #2
    • 19th Jan 11, 9:45 AM
    • #2
    • 19th Jan 11, 9:45 AM
    Speak to local EA. They may have landlords on their books looking to buy.

    Of course if you know any local landlords you could approach them directly.
    • Gwhiz
    • By Gwhiz 19th Jan 11, 10:01 AM
    • 2,264 Posts
    • 2,242 Thanks
    Gwhiz
    • #3
    • 19th Jan 11, 10:01 AM
    • #3
    • 19th Jan 11, 10:01 AM
    Any buyers solicitor will demand vacant possession so you will not be able to exchange on a sale without the tenant out anyway.
  • auroan
    • #4
    • 19th Jan 11, 10:11 AM
    • #4
    • 19th Jan 11, 10:11 AM
    Don't expect to be able to have viewings happening while the tenant is living in there. She has a legal right to quiet enjoyment of her home, which in the eyes of the law being interupted with viewings isn't quiet enjoyment.

    Also with a tenant in situe, you will not be able to sell the property quickly if you did get a buyer as you'd need to give her min 2 months notice to move.
    Last edited by auroan; 19-01-2011 at 1:30 PM.
  • moneybunny123
    • #5
    • 19th Jan 11, 10:15 AM
    • #5
    • 19th Jan 11, 10:15 AM
    That's why I want to try and find someone who will buy it who WANTS the tenants to stay. Because I don't really want to evict her. She pays her rent, and takes good care of the place. AND, if she knows she will stay living there, I think she'd happily let prospective buyers look around. The alternative, as she knows, is that i have to evict her and then sell it empty.
    • silvercar
    • By silvercar 19th Jan 11, 10:18 AM
    • 38,787 Posts
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    silvercar
    • #6
    • 19th Jan 11, 10:18 AM
    • #6
    • 19th Jan 11, 10:18 AM
    That's why I want to try and find someone who will buy it who WANTS the tenants to stay. Because I don't really want to evict her. She pays her rent, and takes good care of the place. AND, if she knows she will stay living there, I think she'd happily let prospective buyers look around. The alternative, as she knows, is that i have to evict her and then sell it empty.
    Originally posted by mandbaby
    Your problem is that you are narrowing your options. Out of the people looking to buy property at the moment what percentage are looking for a property with a tenant in situ? Probably about 10%. So you are ruling out 90% of your potential buyers.
    • Gwhiz
    • By Gwhiz 19th Jan 11, 10:19 AM
    • 2,264 Posts
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    Gwhiz
    • #7
    • 19th Jan 11, 10:19 AM
    • #7
    • 19th Jan 11, 10:19 AM
    Not always: I bought a house with tenants from another landlord... it does happen... (No I'm not buying now..) - but expect the selling price to be less..
    Originally posted by theartfullodger
    Did you wan to keep renting it out? It's fair to say that in MOST cases vacant is required.
  • moneybunny123
    • #8
    • 19th Jan 11, 10:21 AM
    • #8
    • 19th Jan 11, 10:21 AM
    I want to sell it. I need the equity far more than I need the small amount of profit it gives me each month. But I do hope that the tenant can stay as I feel guilty for evicting her. Not only that, but what if I can't sell it quickly once she's gone? I'm stuck paying a mortgage with no tenant to cover the cost. Aaaaarrrghh!! I just want to sell the damn thing!
  • N79
    • #9
    • 19th Jan 11, 10:23 AM
    • #9
    • 19th Jan 11, 10:23 AM
    LLs often buy houses with Ts in but they are normally bought through fairly informal networks - if I want to buy properties with sitting Ts I do not go through the normal high street agents but use contacts in the local LL world.

    The problem for most "accidental" LLs is that they are not really part of the LL business world (as we often see on these boards) so their only realistic opportunity to sell is on the open market. The open market requires vacant possession.

    OP - talk to your Ts about what you are doing but ultimately you will probably have to evict them and sell on the open market. That is the "normal" approach and anything else will result in a lower price.
  • moneybunny123
    N79 - that is good advice, thank you. It makes perfect sense, but doesn't really help ME, now. You mention landlords using informal networks. Such as? This is exactly the sort of thing I need to find out, but I don't know where to start.

    I have emailed a few local letting agents to ask if they know of any potential landlords that would be interested. Other than that, I have no idea. You have said that potential landlords probably wont go through agents, so now I'm scuppered!!
  • N79
    N79 - that is good advice, thank you. It makes perfect sense, but doesn't really help ME, now. You mention landlords using informal networks. Such as? This is exactly the sort of thing I need to find out, but I don't know where to start.

    I have emailed a few local letting agents to ask if they know of any potential landlords that would be interested. Other than that, I have no idea. You have said that potential landlords probably wont go through agents, so now I'm scuppered!!
    Originally posted by mandbaby
    Are you an active member of your local affiliate LL association (ie our trade bodies)? Are you active in the local business scene (be that chamber of commerce or local business groups)?

    Of course the answers are no, so your only realistic (and your best) option is to sell on the open market. This requires vacant possession which requires an eviction.
    Last edited by N79; 19-01-2011 at 10:32 AM.
  • Jackinbox99
    You can certainly do this. Years back I rented a house and the owner did just exactly this. They offered me a reduced rent for several months for the inconvience of having to show prospective buyers around the house. I did all the viewings for the owners (as they lived quite a distance away).

    The new buyers intended to rent it out, and following a good recommendation from the old owners, they offered to allow me to stay on. Unfortunately they wanted me to move out for 2 weeks whilst they redecorated the house, and then wanted to charge me a lot higher rent for living in the house. So, in the end I just moved out instead.
  • moneybunny123


    Oh no. That is the last thing I wanted. But thanks anyway.
  • moneybunny123
    You can certainly do this. Years back I rented a house and the owner did just exactly this. They offered me a reduced rent for several months for the inconvience of having to show prospective buyers around the house. I did all the viewings for the owners (as they lived quite a distance away).

    The new buyers intended to rent it out, and following a good recommendation from the old owners, they offered to allow me to stay on. Unfortunately they wanted me to move out for 2 weeks whilst they redecorated the house, and then wanted to charge me a lot higher rent for living in the house. So, in the end I just moved out instead.
    Originally posted by Jackinbox99
    Ooh, that gives me a bit hope. It's just a case of finding someone who will want to buy it. It's very frustrating as I think it's a great investment. I know you can get a buy-to-let mortgage for less than she pays in rent - PLUS the buyer has any equity that builds up on the house, and it's always there for them to sell. Can't understand why people wouldn't be jumping all over it to buy it...
  • N79


    Oh no. That is the last thing I wanted. But thanks anyway.
    Originally posted by mandbaby
    You may as well wait and see if any of the agents gets back to you and as I said, talk to your Ts. They may be quite understanding and willing to support the sale process, or they may not - I might depend on any inducements that you can offer.

    The truth is that as English Ts have almost no security of tenure so there is just not much of a tenanted property market in England and Wales. This is because it is easy to get vacant possession and you get the best price by marketing to the largest number of potential buyers. That means selling on the open market.

    It may not be fair to Ts but that is the rental system that parliament decided to create in England and so, while clearly you feel a little guilty, it is the way things work.
  • moneybunny123
    Yes, I suppose so. I'm a woman and so I think my heart comes into things a little more. My husband thinks we should just serve her notice now and get it sold. Our needs come before hers, etc. I guess he's right, but I just feel so bad!
    • theartfullodger
    • By theartfullodger 19th Jan 11, 10:45 AM
    • 10,214 Posts
    • 13,989 Thanks
    theartfullodger
    I'm a woman and so I think my heart comes into things a little more.
    Originally posted by mandbaby
    You never met my 1st wife, did you?
    • sequence
    • By sequence 19th Jan 11, 10:48 AM
    • 1,835 Posts
    • 1,428 Thanks
    sequence
    Awwwwww....... But! Your husband is right - this is business you're not a social worker for the tenant. Evict tenant, sell property, move on!
  • moneybunny123
    You never met my 1st wife, did you?
    Originally posted by theartfullodger
    Like the tinman, was she?

    Honestly, I feel sorry for everyone and always see the best in people. Husband says I let people walk all over me. Thing is, if more people were like me the world would be a much nicer place.
    • silvercar
    • By silvercar 19th Jan 11, 12:14 PM
    • 38,787 Posts
    • 162,107 Thanks
    silvercar
    Be honest with your tenant; tell them your plans and that they should start looking for their next home. One thing to say you will be flexible with notice and moving out date etc another to keep a property on when you need to sell.
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