Want to sell rental property but feel guilty

[Lunchcatastrophe]

We bought our rental property nine years ago. It cost £160,000 and we bought it outright. The current market appraisal suggests a marketing price of £215,000 to £220,000. I suspect it would probably sell for not much more than £200,000.

I want to sell due to a combination of the factors. I’m worried about changes to the Renter’s Rights Act. I think we’ve come to the point where the lump sum from the sale is going to be more useful to us than a few hundred pounds in rent a month. After expenses and tax we made £329pcm in the last tax year, due to paying for some quite expensive repairs. I don’t enjoy being a landlord and the last couple of years have been particularly stressful. I worry a lot about a major bill wiping out an entire year’s income or more. My disabled husband has become increasingly unwell and I think being rid of the worry of the property and having some extra money to spend on moving to a more suitable property ourselves needs to be prioritised.

The current tenancy ends in June and I want to give notice before the law changes in May (we’d have to serve notice by April anyway). However, I feel really guilty as a year ago I decided to sell and gave the tenants advance warning. They managed to secure a house that was becoming available a couple of months after their tenancy was due to end as, luckily, one of their neighbours was moving later that year. We agreed they could stay in the house until their new one was ready. I then changed my mind about selling having been persuaded, somewhat reluctantly, that selling wasn’t the right thing to do. I let the tenants know, apologised for messing them around and said of course I’d understand if they wanted to take the new house anyway. They had a think about it and came back to me and said they’d rather stay. They asked if I’d be increasing the rent for the following year and I said I wouldn’t.

Now, a year on, I really do want to sell for all the reasons I outlined above but I feel very guilty about messing the tenants around and them losing the chance of taking the alternative house just across the road.

DH says we need to toughen up a bit and put our own needs first.

This has turned out sounding a bit more like AIBU then an investment thread but I suppose I’m looking for opinions from other LLs about what they might do in a similar situation. I suspect the fact I’m hesitating due to feeling guilty shows I’m not cut out to be a LL.

Sorry, I misread your post re your profit.

I personally know a few landlords who have just had two houses fully renovated, new everything, it's part and parcel of being a landlord. Well, a good one, they could have just banged them straight back on the market, but after 15 years of being lived in and not much else done in that time, it's money well spent for another 15 years' service.

You have changed your mind on a whim, three times in 12 months. You can have whatever reasons you like for changing your mind; it's your house, you have every right to do as you see fit, and you do not owe your tenant any loyalty, any more than they would owe you if they wanted to leave. But you will have messed them about. Moving is not much fun and comes with its own expenses. I can see why they didn't want to move when given the chance to stay put.

Just sell. Government have been warned that this is the consequence of the changes to tax policy and renter rights legislation. In my view all expenses including interest should be fully tax deductible for all landlords but rent caps should be in place together with stringent enforced standards so that the quality of accommodation is improved for renters. The current situation and proposals are frankly shit for everyone.

Oh, I feel your pain. I am in a very similar position, tenants in the bungalow which passed to me when my mum died, paying rent well below market value (they do look after the place, it gave me peace of mind so rent stayed low). They indicated a few years ago they would be interested in buying if ever I wanted to sell, I was not emotionally ready at that time. Now I am and additionally do not want all the hassle of being a LL any longer, especially with all the forthcoming changes in legislation, so offered them first refusal and they have now turned round and said they are not in a position to buy. I could sell it to an agency on a leasing agreement (we would agree a price, they would effectively take over as landlords and sell in due course, 2-3 years at which point I would get my money, but won't get the full market value as its not the greatest investment from their viewpoint given how low the rent is that the tenants pay). Or I kick them out, I feel so guilty doing that, but it feels like I need to steel myself to give them notice

It is nice that you are concerned for your tenants but ultimately you need to look after your own interests. If the tables were turned would tenants be so accommodating? You didn't introduce the law so hardly your fault.

In the first instance I would offer your tenants first refusal to buy. If they don't want to buy, I would definitely sell.

You're allowed to put yourself first. You've provided them with a home, renting should be mutually beneficial to the tenant and landlord. Posters here think rentals should be run like a charity as it suits them, but I doubt many will be asking for the contact details of tenants and offering them a place to stay.

'You've provided them with a home' Not out of the kindness of their hearts - they have paid market rates for their home! So it has been mutually beneficial for both.

No one is asking the landlord to be a charity, just perhaps a decent landlord who doesn't change their mind every few months. Most tenants want stability and nothing more.

Send me their contact details. I know plenty of landlords looking for good tenants.

OPs disabled husband has become increasingly unwell and her circumstances have changed. She hasn't messed them about for shits and giggles.

Another landlord might buy it anyway 🤷‍♀️ Your renters wouldn’t worry about you potentially having months of no income if they left so you should sell if you want. It’s just the nature of renting I’m afraid 🤷‍♀️

She's also not provided them with free lodgings. They have paid for that privilege.

Nice pulling out the one reason for wanting to sell, but I read it very differently.

I want to sell due to a combination of the factors.

I’m worried about changes to the Renter’s Rights Act. I
I don’t enjoy being a landlord
I worry a lot about a major bill
My disabled husband has become increasingly unwell

I want to give notice before the law changes in May
I feel really guilty
I decided to sell and gave the tenants advance warning. They managed to secure a house that was becoming available
We agreed they could stay in the house until their new one was ready. I then changed my mind about selling
apologised for messing them around
I feel very guilty about messing the tenants around and them losing the chance of taking the alternative house just across the road.

Basically, she wants out before the law changes, and that's fine, but the only thing here is guilt that's stopping her from pulling the trigger, because she knows and said.

I feel very guilty about messing the tenants around and them losing the chance of taking the alternative house just across the road.

As I said before, she doesn't owe the tenant anything, any more than the tenant owes the landlord, but please don't try to frame it as if this is being done for a single reason.

OP, I'm not having a bash, honest, sell up, don't feel guilty. move on.

I haven't said that she has provided them with free lodgings, but she has provided them a home by renting hers to them. People that cannot afford a home of their own rely on landlords doing this for somewhere to live. I would imagine the other reasons are a bigger concern due to her husbands disability. Landlords shouldn't feel guilty for selling up when tenants have pressured the government to make life difficult for the people that choose to house them like many on this thread have tried to do.

Op I really feel for you. I’ve had to do something similar. I felt dreadful but I was
losing money every month and simply couldn’t sustain it any longer. It was even worse as the poor tenants had to accommodate viewings (or go out when there was a viewing).

To make matters worse, their notice period ended over Christmas / new year so that’s when they had to move. I tried to make it as easy as possible for them…… told them I didn’t require a professional clean (as the letting agency wanted them to do) and made sure they got their full deposit back asap.

It eventually completed last week and the relief is overwhelming. I spoke to the tenant and they are settled in their new home and they now have a dining room and garage which they didn’t have before so that’s good at least.

Private message me if you want to talk it through and don’t beat yourself up about it. Sounds like you have enough on your plate.

OP, I had a great tenant for 10+ years. The real drag for me was the annual tax return. I offered my tenant first refusal to purchase but he didn't bite. Told him we'd keep things as they were. His rent was never increased during his tenancy.

Roll on a couple of years and I wanted to pull the plug. I told him well in advance what I was planning so it wouldn't come as a shock.

Gave him 9+ months notice and he found a new place after 7 months.

We ended on good terms and I felt a mix of guilt and relief.

The context of your reply was that the landlord has not received anything in return, and they have a fair market value for a place to live. And now they should be able to prioritise themselves again, like the landlord has been doing them some godly favour by allowing them to pay to live there in their 'home'. It was never their home; it was an investment. They didn't welcome strangers into their spare room, to their 'home', they rent them a house.

As I have said many, many times, the landlord owes no one anything, but I can't stand this virtual signalling from people who claim landlords are above reproach and do it out of the kindness of their hearts by letting poor tenants into their homes. It's done for return on investment.

That was not the context of my reply at all. I have said that many on this thread feel landlords have some kind of duty to provide rentals for no profit. It does not matter if the property was a house or a home to OP, it was a home to the tenants. Without landlords tenants would struggle to find that. It is not virtue signalling to point that out.

I’m kind of in a similar position but I own along with my mum and brother two properties I rent out. I’d prefer the capital from the sale of at least one rather than just the rent. They want to hold onto these though.

I personally wouldn’t feel guilty. It’s your property and if you have to sell it then you do. Renters know this when renting.

Nut up and sell.
Make sure you account for the CHT and tax on this years profit.
Offering the tenants a discount might work out, but you might still be liable for the full market value for CGT purposes.
I also sold up because my my then husband was seriously ill, the houses went to a mixture of landlords and resident buyers. One went to the tenants, it took absolutely ages to sort that one, they weee comfortably in situ and had no concept of what buying a house involved.

We shall have to agree to disagree with the ambiguity of the language used.