WWYD: sell house or keep tenant

[FoxtrotOscarFoxtrotOscar]

I am an accidental landlord. Rented my house out (mortgaged) when I went to work abroad and have no intention of living in it again.

My tenant, a local single older man, has been a model tenant for several years.
He pays below market rent because I haven't increased it since he moved in as he is reliable and gives me no hassle or worry whatsoever. Rent is by standing order and I barely give the place a second thought. Until the dreaded bore of the annual tax return which does my nut in.

Had the place valued last year, with his knowledge, and offered him first refusal and also said an offer would be strongly considered.
I told him if he wasn't keen on buying that we would continue as we are.
Anyway sadly he didn't bite and I dropped it but was disappointed.

I just want rid but it is his home and I feel bad about doing this to him. He has probably retired by now or is close to retirement age.

The market is very buoyant right now and would sell without difficulty.

Any words of advice gratefully received!

Anyone who rents must always be prepared for the circumstances to change and the landlord wanting to sell.

If you want to sell, then sell.

@Tamarindtree thank you and yes, you are completely right.
I'm a bit of a softie and don't have a business brain!

You obviously need to put yourself first but please don't sell if you don't have to at the moment as there so few rentals at the moment.

Just be honest and say you are looking at selling the property. Most leases have 1 month notice but as he’s been lovely and you seem nice just say you aim to sell by 6months from now.

also the person who buys it might want a buy to let then already having a tenant is a double win

Depending how your fix finically just tell him your selling and will wait till he finds somewhere obviously put a long limit on it

wouldn’t sell it with him as tenant as you’ll get reduced price and chances are first thing new LL will do is up rent you’ll take a hit for nothing

Very useful viewpoints, thanks for your thoughts.
Will sit on this a bit longer.

He has probably retired by now or is close to retirement age.

Assuming normal retirement age, are you happy to have him there for perhaps another 20 years? It will only be more guilt-inducing to terminate the agreement as he gets older. If he’s that age, he may be able to get social housing, always easier for pensioners.

I'm not sure what part of actively renting your house out makes you an accidental landlord?

Can you sell with sitting tenant?

You want to sell, so sell. Keeping a house that you don’t want is ridiculous.

You are under no moral obligation to be responsible for another persons destiny.

You aren’t turfing him out in a weeks notice, you will be putting YOUR property up for sale and serving him notice which will give him plenty of time to find somewhere else.

What he is entitled to however is to enjoy quiet enjoyment of the property and may not allow viewings.

I would say it might be worth hanging onto the property - I know you say you currently have no intention of ever living there again but I will say I know of a lot of ex pats whose plans have ended up changing 10/20/more years down the line when something has made them want to move back again whether that’s due to ailing family members, access to healthcare or whatever. And it’s much harder to get back on the property ladder in the UK than off of it.

Inheriting a rental property I assume. This is likely to happen to me and I'm dreading it. It's the last thing I want, I'd want rid as soon as possible, but if this happens I'm feel shit as the tenant is low paid, pays a low rent, and has lived there for twenty years.I can imagine dithering for a year or two before I can pluck up the courage to make her homeless.

I will absolutely be an accidentalal landlord if this happens.

Legal minimum is 2 months notice to evict

Before you take steps to evict make sure you have complied with all the requirements such as gas safe cert, EPC, rental guide and protected deposit at the outset because if you haven’t then any application to court for an eviction order will be denied.

And you may well end up having to take it to court if your tenants only alternative is social housing (if he’s been paying well under market rates this is likely) because most councils will require a formal eviction before accepting responsibility to rehouse (voluntarily leaving is deemed making oneself intentionally homeless and negates a local authority duty to provide housing).

Take some good financial advice about what to do with the capital, and consider your own income needs in the future, what to do will be a weighing up exercise

@saraclara

OP said it was her house and mortaged,m hence me asking.

Good point.
When he moved in around 10 years ago, he was separated with adult children. He is from the local area which makes me hope his family/friends would also help in finding him somewhere else.
But I want to make it as smooth as possible for him.

I presume she didn't actively purchase a property on a buy to let basis?