Advice on selling a house with tenants?

Advice on selling a house with tenants?

9:25 AM, 8th May 2024, About 2 weeks ago 11

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Hi, I’m seeking advice on how to sell a house that currently has tenants. Last summer, I attempted to sell a property while it was still occupied by tenants on a rolling contract.

Despite assuring them that we would provide plenty of notice and help them find alternative accommodation before finalising the sale, the tenant panicked and immediately found another place to live. Consequently, the property remained empty for six months while the potential buyer attempted to purchase it. Eventually, the buyer withdrew from the sale, and I decided to rent the property out again.

Recently, I attempted to sell another property, but the tenant was clearly distressed, so I halted the marketing process. Now, I’m considering offering tenants 1% to 1.5% of the sales price to incentivise their cooperation. This would equate to approximately two to three months’ worth of rent. My goal is to avoid the financial burden of paying mortgage and council tax on an empty property.

I would greatly appreciate knowing if anyone has tried this and if it would work, or any tips on how to successfully sell a property with the cooperation of the tenants.

Thank you,

Billy

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Comments

Mick Roberts

10:25 AM, 8th May 2024, About 2 weeks ago

I'm currently selling 4 with tenants in who all want bigger better ex boyfriend stabbing them etc.
So I have their permission to sell with them in.

Here's what I am doing and am tidying the notes up later as one has just said she wanted paying for viewings even though she now in refuge and still wanted viewing money.

£20 for every viewing as incentive to clean up, tidy up, let people in, tell em positive points about the house if they ask.

You may think Why. Cause tenants generally aren't bothered about Landlord selling his house unlike a home owner who HAS to comply.
If u know you're getting something too, u go out your way to do the right thing. You'll turn up, clean up, let em in.

Stay there till the end, the last day just like when people sell their house, they don't get time, days, weeks, where they can have two houses empty.

10% over a certain agreed amount. Again incentive for you to get house spick and span. I'll pay any monetary costs for things that u may think house needs doing to get better sale price ie. wall needs painting but you're not paying for any paint cause u not bothered cause moving. I'll pay for materials if you do the stuff.

You again may ask why. Cause an house empty is often worth less or looks worse than lived in.
So if I think I'm only gonna get 140k empty, but 150k with u in it, I get 10k more, give u 1k, I've still got 9k more, so I'm not really losing am I.
Better the house is, more we get, so u do well too.
Plus I get rent to the last minute. So again u costing me less.

Pamthomp33

10:49 AM, 8th May 2024, About 2 weeks ago

Many home buyers are reluctant to offer on a house with tenants as there is no guarantee the tenants will leave whatever incentive you put on the table for them. The shortage of rental properties available will also make this difficult to work for tenant and landlord. You may also find that a Solicitor won't advise exchanging contracts with the tenant still in the property.

David Houghton

17:04 PM, 8th May 2024, About 2 weeks ago

Most of us sell with vacant possession. There are good reasons for it. My advice don't, it's risk for little reward

Disillusioned Landlord

20:30 PM, 8th May 2024, About 2 weeks ago

Get the tenants out before you sell, this may cost some money in having it empty, but the risk of issues with tenants in place are pretty high. They can sabotage viewings, leave the place a mess, and ultimately hold you to ransom if they don’t leave and your due to complete 😔

DPT

17:54 PM, 10th May 2024, About A week ago

I agree with the last 3 posts. It currently takes up to a year to evict a reluctant tenant. No sensible buyer would want to take the risk.

JC

8:25 AM, 11th May 2024, About A week ago

As a landlord, it is exactly the perfect scenario. To sell your property with the tenants in situ.
This way you will continue to receive rental income until completion at which point the future rental income is paid to the new landlord.
This is a far better outcome for both of you.

Monty Bodkin

10:53 AM, 11th May 2024, About A week ago

Sell with vacant possession while you still can.

Tenanted properties are currently worth 20% less than open market value.

The Renters Reform Bill could make them worth half price, as they were in the past with secure tenancies.

Throwing in the towel LL

12:10 PM, 11th May 2024, About A week ago

I tried to sell with a tenant in situ - she refused to open the door to viewers. I'm now having to go down the S8 court route...groan....(:o(

philip allen

13:13 PM, 11th May 2024, About A week ago

Reply to the comment left by JC at 11/05/2024 - 08:25You, obviously, have never tried to do what you are advocating. No landlord would ever contemplate selling with a tenant simply because NO ONE will buy.

Mick Roberts

16:04 PM, 11th May 2024, About A week ago

Reply to the comment left by philip allen at 11/05/2024 - 13:13
I do. Sell loads with tenants in.
And bought loads with tenants in
He's right about getting rent in to last minute and no Council Tax and Gas elec bills to pay and house security.

But yes have to make sure all paperwork super compliant. I'm selling 4 as we speak. Two with tenants in. One with Letting Agent so we'd hop paperwork all complaint to 2024 standards on that

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