Renting your house out AND selling it at the same time?(21 Posts)
House just on market, However our plans are changing and we might move to a area much futher away.
If we do,then for school reasons it's best we move ASAP and need be in the potential new area no later than December, but sooner better really -early September is best.
Can we rent our house short term while still selling so we can rent in new area?
How would it work?
Would it be nightmare with getting tenants to tidy for viewings etc?
Anyone done this?
As a tenant, I know that it's not uncommon. We've learned to check that it's not also listed on Rightmove as "for sale" because some landlords aren't upfront about it. If you specify that it's on the market, so for short term lease, then some tenants will shy away.
I wouldn't be thrilled with a lot of viewings. Any tidying I would do would be based on my own self respect. So I wouldn't leave grotty underwear on the floor. But I wouldn't care about the sort of decluttering that makes everything spacious and pretty.
I have a flat in town and the owners are going to sell it. I’m going to leave it reasonable but I'm not going to be bothered about laundry airing in the lounge or some clutter around the sofa. It's my home and the primary purpose of the flat is to suit me and my needs.
Nor will I be hugely inconvenienced for viewings. If there's something I want to do at home that day, like watch Netflix with my friend and drink wine, then viewings will have to schedule around me for sometime when I'm not in.
I may sound grouchy, but I am only trying to give you the potential perspective of a tenant.
We have done this several times.
Always make it clear it's a short term tenancy.
Unless it is in a very sort after area it usually helps to market it with below value rent to get someone in easily.
Another option is to airB&B let it out.
Look at it from the tenant's point of view. Would you be happy to hand over large amounts of rent each month for your home and be expected to constantly accommodate viewings? It's bad enough doing this when it's your own property. Either having to tidy up and be around to let in the prospective buyers, or having the agents let themselves in while you're not home. Not great, is it?
If you are going to try this, please at least be honest about it from before the tenancy agreement is signed, so your tenants know what they are getting in to. Or perhaps you could offer a lower than market rent as a trade-off for the inconvenience?
I would be a bit careful though, as if the tenants decide to be difficult they could easily sabotage viewings or not allow them at all (which would be within their rights).
Can you afford to let it out for a massive discount off market rate? If you let it for say 65% of the normal rent for a property of that size and location but seek a tenant who will actively help with the sale, could that work?
I wouldn't touch short term with a barge pole because of the hassle and on right move everything that is just sits there. Family homes even more so because of the sheer magnitude of moving in, organising deposits etc.
No way would I bother to lift a finger for sales viewings. If you wanted viewings to take place, I'd either refuse if contractually permitted, or offer 1 hour per week 7-8 pm on a single evening per week. I would cap it at 4 viewings. If your estate agent is pushy or rude or pisses me off in any shape or form, they are not setting foot in my home and I will change the locks until I leave. Which will be ASAP.
I'll have to be there during viewings unless you and/ or your estate agent provide me with your up to date police clearance certificates. I'll be extremely honest.
Basically, you need to offer a tenant a big financial incentive to work for you (and against themselves!). I would not be interested in that incentive unless in included 100% relocation costs and compensation for inconvenience and loss of privacy. Around 3 months rent for me.
It's better to sell vacant and take a hit on rent for a fast sale (I've done this and have empathy with your situation).
On the other hand, if you let the property to me at 50% market rent, and on explicit condition of immaculate presentation and unlimited access for viewings and that I agree to, say, 2 weeks notice, then I can probably do a very nice job for you
This might be better for your insurance purposes should the sales process linger, and I'd treat is as a job to keep the place looking fabulous. If your EA can't find time to do a viewing then no problem, I'll show them around myself accommodating their schedule and including weekends. You might even find me so helpful that you could consider cutting out estate agency sales fees completely. I'll pay you (reduced) rent and leave only when you're ready to exchange. It would be a job, because we both entered an understanding as such.
Best of luck whatever you decide to do.
It's true you'd probably get a quicker sale if you just moved into rented in the new location from early September and left the house empty or with an ultra-minimalist look.
On market for say 6 weeks, then could be completed and sold to a no-chain buyer 6 weeks later.
Or with tenants in place who might be stroppy about viewings and may not live up to the best standards of decluttered perfect presentation, perhaps might be on the market for longer and sell for several thousand pounds less due to potential buyers getting generally less good vibes. Plus completion would take longer because no self respecting solicitors will let their clients actually sign a contract to buy until the sitting tenants have left, in case it turns into an eviction nightmare.
It could end up costing you a lot more than however many months of rent you might receive.
Can I ask why? It's unlikely that you will sell with tenants in situ most buyers and mortgage companies will want the house empty (and any damage cleaned and repaired). You'll also have to get gas safety certs, electrics checked and pay management fees as you won't be around to deal with any problems. Add paying the mortgage and the tax on the rent it's actually not always that profitable and can be very stressful renting out a property. Especially one that's going to end up empty for at least six to eight weeks anyway. If it's a year or eighteen months probably worth doing but for six months not so much.
Thank you for the answers- certainly lots I hadn't even considered too!
The main reason to rent it out too, was to help fund the rent of what we rent as the rents are high in
The potential area, plus paying the mortgage still on this house would be unaffordable
I don't think this is the right path for us, to much added stresses-back to the drawing board!
Theres also mortgage permission, all the insurances etc etc. Min term is six months and your tenants may not leave when u want.
Back to plan b indeed!
If you do decide to sell and rent your house then please, please let your tenants know. We had to rent short term (around 8-9 months) a few years ago. We had two small children and due a third. We moved in and a couple of weeks later were told that the house was also being sold and viewings were being arranged.
It was a massive inconvenience to us - having a tiny baby and showing viewers around. I didn't tidy up, I wasn't bothered if the kids had all their toys out and there was washing up in the sink. There was a huge difference to how I had presented my house to sell just a couple of months earlier. If times weren't convenient to us to show viewers around I refused and tried to rearrange. I refused to let the estate agent show viewers around.
Also, it really bugged me when people made appointments then failed to show up. I was not happy with the estate agent and there was no way we would have rented that house knowing it was up for sale, too.
bear in mind that tenants do not have to allow any access except for emergencies, regardless of what a contract might say.
My boyfriend moved into a house that was for sale - he payed about 60% of market rent, was on a 1 month rolling contract and had to allow viewings whenever the EA wanted to do them.
Not a fucking hope would I rent somewhere I knew was up for sale. I wouldn't even consider it for a rent of £100 pcm or less. There is no incentive whatsoever for tenants.
I think you would have to offer a significantly reduced rent on the very clear understanding that the tenant has to allow viewings. But still allow reasonable notice and on no account allow estate agents to barge in whenever they think they will.
Someone in need of a short term let might not mind, but I don't think many people would want it. Having to tidy up for viewings is a pain when it's your own house, never mind anyone else's.
OP, we've just done this. We are selling our house with a big London agency and it is also listed for short lets. The market for these is nothing like that for tenants looking for a home. It's for people who are working in London for a few months and want more than a crash pad, or to bring their family with them. The same agency recently let a house down the road to a local family who were having major structural work done to their house and needed somewhere to live.
It's more like a holiday let than a normal longer-term tenancy. Agents' fees are higher and tenants expect the house to be furnished. Alternatively, if you can manage the logistics, considering listing on air bnb. Do you live in an area with plenty of tourism or industry?
We are just about to rent a house for 6 months whilst our house has extensive building works. The house we are going to rent is also up for sale.
I personally wouldn't mind them doing viewings but the letting agent said that in the standard contract they wouldn't be able to do them until the final 2 months of our contract.
So, I think you may get lucky and get someone after a short term let but I suspect the majority of people are after something longer term.
My tenants are renting my family house with the view to buying it. So they decorated it, done everything they want to it on the basis that in 2 years time it'll be valued and they either go with it or I will move back in whilst it's sold. I'm praying they are in a position to buy it for everyone's sake tbh.
Some LAs are very particular about what address they will accept for school applications. If you are renting and haven't cut ties fully with old house then they may disregard the application. Check their rules.
Letting out on an Assured Shorthold Tenancy is minimum six months in the first instance, it can then go onto a periodic tenancy where you can give two months notice. A short term let even at that 6 month length would be looked at suspiciously by an LA.
I had friends who moved after eleven plus results mid Oct as their DD got a pass but not a good enough score for an out of county place. The deadline for moving was by first week of Dec. They rented a place in county by CAF submission date and priced their home very competitively and had it on exchange by the time of the deadline of address changes and they were all perfectly within the rules and accepted by the LAbut someone got a bargain on their house! I reckon it probably cost them £50k as they were in a hurry to get under offer.
Join the discussion
Please login first.