How to do right by tenants when selling?
11:30 AM, 28th September 2017, 9 years ago
38
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I have decided to sell one of my properties but I’m trying to find a way of selling with the tenants in situ.
They are wonderful tenants who have rented from me for several years and I’m trying to do right by them.
Are there any firms/individuals who buy tenanted properties?
I know I won’t get market value!
Many thanks
Ann
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No copy of agreement and tenant has dementia?
Member Since February 2011 - Comments: 3453 - Articles: 286
11:32 AM, 28th September 2017, About 9 years ago
Hi Ann,
Can we ask if you have to sell and if there is a large CGT liability?
Member Since April 2014 - Comments: 460 - Articles: 1
11:36 AM, 28th September 2017, About 9 years ago
Hi Neil, I don’t HAVE to sell (ie. its not a distressed sale), but I would very much like to. The gain will be under the personal allowance for CGT
Member Since February 2011 - Comments: 3453 - Articles: 286
11:54 AM, 28th September 2017, About 9 years ago
Hi Annie,
How about a financial incentive for the tenants to help you sell for the best price possible?
If you are generous I bet you will get top dollar and could help them out with a new deposit.
Member Since February 2011 - Comments: 3453 - Articles: 286
11:55 AM, 28th September 2017, About 9 years ago
Everyone then has a mutually beneficial vested interest, which is the art of negotiation 🙂
Member Since April 2014 - Comments: 460 - Articles: 1
12:38 PM, 28th September 2017, About 9 years ago
Yes that’s true, though I know the tenants will be very sad to move. I guess you mean offer them a financial incentive to allow viewings and a ‘golden handshake’ so to speak? I hadn’t really thought about that. They would get their full deposit back too. They have looked after the house so well.
I am looking into “We buy any house” firms too, for the simplicity and speed aspect. It appears 78/80% of market value is the norm
Member Since March 2016 - Comments: 10
1:26 PM, 28th September 2017, About 9 years ago
Hi Ann,
I sold a property last month with a tenant in situ. I went to someone who specialises in selling tenanted properties and I actually got a very fair price. The tenant was a good, long term tenant which was an asset to the sale, rather than a problem.
If you pm me I can give you the details if you would like.
Regards
Linda
Member Since October 2016 - Comments: 81
1:57 PM, 28th September 2017, About 9 years ago
I think Neil suggestion is best – great that you want to look after your tenants, but most people have a view on what things are worth to them and if it makes you more money and them – why not give them a good amount of notice and get their helping in presenting the house in its best light for viewings? – You could even consider buying some new artwork/furniture etc the tenants could keep to help stage the house?
Member Since April 2014 - Comments: 460 - Articles: 1
2:01 PM, 28th September 2017, About 9 years ago
Reply to the comment left by linda green at 28/09/2017 – 13:26
Hi Linda,
I would like the contact details but can’t see how to pm you. Hopefully someone can tell me how to pm!
Member Since December 2015 - Comments: 828
9:54 AM, 29th September 2017, About 9 years ago
AST? does not bind a purchaser
Member Since March 2016 - Comments: 43
10:11 AM, 29th September 2017, About 9 years ago
I’ve been down this road, and I’ve realised that, for most tenants, it buys only a very fragile kind of goodwill.
You don’t *owe* them anything, but if you give them a sweetener you’re tacitly suggesting that somehow you’re in their debt. I was suprised by how many tenants sniff that out as some form of weakness, even though you’re only trying to do the decent thing.
If it were me, I’d let them off their notice period and leave it at that, because, if you’re selling, you want vacant possession above all.
As far as I know, the incoming landlord absolutely *is* bound by your AST until the end of its term, so remind your tenants about that.