Tenants making viewings difficult

[areweonabreak]

We have a flat that we rent out. It was my DH’s flat before we met. It’s been rented out for 10 years now (by only 2 tenants) but we’re now in a position where our own house needs a lot of money spending on it and we want to free up some capital.

we do feel bad for the current tenant, we offered them first refusal to buy the flat (it’s on the market for £90k) but they cannot afford it (even though a mortgage would probably be cheaper than the rent but they’d another thread)

we’ve had a few viewings now but all the feedback is that the tenants have told them that they don’t want to move so they’re put off as they don’t want the hassle.

we live about a 40 minute drive away from the flat so the agents are sorting out all of the viewings. The agents have suggested that it might be easier to sell if it’s empty.

We’re really not sure what to do, they’re on a rolling monthly contract at the moment.

has anyone else been in this position before?

would anyone else recommend selling as a vacant property?

You cant legally lend someone a deposit or rather you CAN but its then a debt that the bank will take into account when deciding whether to lend the money/setting a maximum. So it doesn't really help

Uh don’t you just hate it when the plebs speak out of turn 🙄

If ever there was the most ridiculous comment it's this one.

We've recently bought a house that was tenanted. The tenants were refusing viewings, which as a renter ourselves, I totally understood.

It was taken off the market till the tenants moved out, which meant waiting a couple of months which was worth it. Think how horrible it must be for the tenants to have people looking round a place they thought could be a home.

These people have been paying you money and been thinking of this house as their home. Try some sympathy as the rental market is a nightmare and they face being homeless just because you want more money.

They work and don't rely on others to supplement their income.

Thanks for the patronising comment! With 2 members of close family who work for HMRC we’re on top of it 👍🏻

Property developer here...evict them. I totally understand they want quiet enjoyment, and that is what they pay rent for. I would not be a happy tenant if I had an estate agent stomping about with strangers poking in my stuff. However, buyers don't want to view properties when occupants are in. It is awkward. I refuse to view properties that have anyone at home. It prevents you having a good look around. The Government are planning reforms to the rental market. This will be along the lines of banning no fault evictions. If you want to sell, serve notice on the tenant now. If they resist, it could take a while to legally evict them. Not that it will come to that if they depend on your landlord reference etc, but being prepared for the options is important. Save yourself a lot of hassle in the long run and once empty, and throw some paint on the walls if it shows signs of wear and tear. First time buyers barely have the cash for the deposit, let alone a renovation once bought. In certain areas, the housing market has slowed up (understandable in the current economic circumstances). Therefore, be prepared to drop the price or wait a while for a buyer. On top, be aware that the Government are bringing in double council tax for empty homes soon.

Are you selling as vacant possession or tenants in situ? Who is your target market?

Round here a £90k flat would be snapped up quickly, tenant or no, is it a good price for the local market? Freehold or leasehold? Leasehold is off putting for a lot of landlords so would push you more into the first time buyer market so vacant possession would be a must.

I'm pretty sure the OP knows the law. She's allowed to want her tenants to not actively obstruct their sale.

The OP isn't a charity. Plus you would only need about £9k deposit for a £90k property. The OP isn't unreasonable to think this is an affordable sum to save and she was kind to give first refusal at a lower rate.

They are entitled to "quiet enjoyment", and that includes the hassle of always being "viewings ready". You seem reasonable, and I'm sure you can appreciate that having their home whisked from under them, isn't exactly going to make even the most reasonable of tenants feel the most cooperative.
Really, the best thing for you personally would be to give them notice, then market the property once it's empty - and offer the current tenants a glowing reference.

My flat was a BTL previously.
Flats sold here sell within a few days. Ours was on the market for under a week and another sold in that time that we missed as they had dozens of viewers (central London no garden)

The agent was interesting- apparently they had tried to sell it as BTL about 6, months earlier with tenants and had had no interest. They then waited until the lease ended (students) and did it up a bit (painted)

The agent said pre Cv19 and HMRC changes to tax arrangements for landlords it would have sold with tenants within a few days. These days no-one will buy a flat with tenants

It is valued at £90k
Hard to see that CGT would be due!

Give notice & sell empty. You might need to do some tidying of paintwork etc once they vacate but in my experience it’ll be much easier.

Not sure why there’s so much sass on this post. The OP hasn’t criticised the tenants, she just wants advice.

Thank you, I think this is honestly the way forward

Why don’t you try and make it work so they CAN buy it? Any chance they can get a mortgage if you drop the price low enough? You could come to a deal so they get to stay in their home and you get to free up sim cash. Perhaps legally lend them the deposit, or waive the rent so that they can save up for a few months?

All potentially dangerous roads to go down, especially when the house is already very modestly priced and OP said she's discounted it anyway

As so many have said it would be better to serve notice and market the place once it's empty, or failing that sell it as an investment property (though that would fetch a lower price)

How long do theft have left on their tenancy agreement? Could you not just be reasonable and let them serve out their term you both signed up for?

Clearly those saying 'just evict' have never rented or been made homeless,

They’re on a rolling monthly contract, so each of us would have to give 2 months

Says who? If the OP organises viewings while there are tenants in the property, they're liable to be present and human beings do like to talk to each other.

It's quite conceivable that they just gave a truthful answer to a question. Anyone even reasonably switched on who was looking at an obviously tenanted property for sale would want to find out how they felt about the issue and whether they were likely to go voluntarily, because of the trouble it could cause a buyer if they didn't.

Just chuck them out.

Why should she drop the price? The owner should be able to sell it for its correct value. She's not a charity. The OP has been more than reasonable.

If they are being difficult give them notice to quit. Unless you want to sell it with sitting tenants.

The advantage to the OP in the tenants buying is there'd be no void, no need to spend money tarting it up to put on the market, no estate agent fees, the possibility of an expensive and time consuming eviction process evaporates and there's less time outlay altogether. It could potentially work out as the most cost effective option for OP even if the price had to be reduced to enable it. So it isn't a question of being a charity, and was worth investigating.

However, the tenants can't afford it so it's moot.

Your tenant is in a difficult position. Currently they aren’t threatened with homelessness as you’ve not served notice. When you do they usually have a higher priority banding on housing register.

Do the notice. They will be advised to stay put through to possession. Can be a lengthy process.

No way would I be buying a house and spending out on surveys with a sitting tenant.

Personally I wouldn't buy a place with tentants. Especially ones who said they, "don't want to leave!" I'd be too worried about them squatting. Give them notice to move out, then put it up for sale.

Definitely sell empty. I would no way offer on a tenanted property because you never know how easily they will leave.

Just chuck them out??
Really? it's virtually impossible to find a rental never mind in 8weeks and move.