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Original poster

Selling a flat with tenants in situ

13 replies

shinyblackgrape · 16/12/2011 16:39

I own a flat in Aberdeen which is currently rented out until September 2012. It was my home until I moved with my now DH to Cheshire and we bought a house here which we live in.

The flat in Aberdeen seems to have appreciated quite well in value. DH and I would now like to sell it as:

(1) things keep going wrong in it. For example, I had installed an expensive cooker and a new boiler before I moved out as it was my house and therefore wanted things as nice as possible. They were less than 4 years old but the cooker has needed replaced this week and the boiler apparently keeps breaking etc. The boiler is covered by a warranty but I have had to pay for various call outs when the manufacturors haven't been able to send someone quickly enough.

(2) we would like to release the equity in the property. We are trying for a baby at the moment and don't want the worry of having the flat empty for months if the tenants left and we had a reduced income due to mat leave.

I would really like to put the property on the market after Christmas. However, the letting agent has been quite negative regarding this and said that it is very difficult to sell a property with tenants in situ and that viewings etc would be difficult.

Does anyone have any experience of this kind of situation and are we going to have to wait until the lease terminates in September (not the best time of year for selling) and thjen have the flat empty for months until we can sell it?

OP posts:

AurraSing · 16/12/2011 16:49

I have no experience from a sellers point of view, but I have rented when the owner decided to sell, and I admit that I wasn't overly helpful when it came to viewings. So I agree with the ea that selling with tenants can be a problem. Also, I wouldn't buy a house that I couldn't move into for several weeks or months.

Could you market to other buy to let's? They would be thrilled to have tenants already in.

Original poster

shinyblackgrape · 16/12/2011 16:54

Thanks Aurra. Yes - that is what we would like to do - sell to a BTL investor.

However, the letting agent seems completely clueless as to how this could be facilitated bar just advertising it on the open market.

I've been googling and can't really see anything. Maybe you do just advertise on the open market....however, I'm all worried that I've missed some special website

OP posts:

jasminerice · 16/12/2011 16:59

It's not a problem. The ea needs to advertise it as a btl. And the solicitors need to transfer the tenancy agreement over. But it might take longer to sell as you have a limited number ofpotential buyers.

MillontheFloss · 16/12/2011 17:04

surely having tenants in while selling is pretty normal? i have a flat and like you, OP, things keep going wrong and as a reluctant landlord, i just want to get rid and focus on mine and DH's new house. wouldn't be able to afford it sitting empty whilst on the market though...

we are also trying for a baby and can do without the headache of renting a flat out, but could do with the equity.

Original poster

shinyblackgrape · 16/12/2011 17:05

Good - that is what I was thinking. I think if we put on after Christmas, that gives 9 months hopefully to find a buyer until the lease ends.

I might advertise on gumtree and also have the estate agent advertising too. I just can't bear to replace another thing!

OP posts:

MoreBeta · 16/12/2011 17:06

We lived in a rented house that was sold on by the owner to a BTL investor. It worked well.

However, our agent was a specialist BTL agent and had a portfolio of clients who they could call and ask if they were interested. You need to find that kind of letting agent who has a portfolio of existing BTL clients.

The other way is to auction it. There are lots of BTL investors at house auctions - but you need to find an good large auction house that specialises in Scottish house sales.

Having said that a house will usually sell for more as vacant possesison to a private buyer who wants to live in it themselves. BTL investors are only interested in yield.

Original poster

shinyblackgrape · 16/12/2011 17:07

Thanks Mill. I think so too. I mean, when I rented a flat, I gave notice to quit and the letting agent made it clear that I had to accept potential new tenants coming to look round. I see this as sort of the same thing. I wouldn't expect hoards of people to come.

I'm like you too and just want to move on - literally.

Mill - are you going to put yours on the market with the tenants in it then or wait a bit longer?

OP posts:

Original poster

shinyblackgrape · 16/12/2011 17:11

Beta - The yield appears to be 5.6% is that good?

Thanks for your comments - very helpful. I'm actually a solicitor and considering speaking to some of my friends who work in Aberdeen to see if they have any BTL clients or if their firms could market the property

OP posts:

MillontheFloss · 16/12/2011 17:15

I'm going to wait a bit longer I think. DH thinks we should keep it as will have paid mortgage off in ten years and it is a good investment I suppose. I just get so down about the constant calls from the estate agent about something going wrong. bathroom leaking, new oven, new washing machine, broken lock, extractor fan needed. It seems constant and I swear I never had any problems in the 5 years I lived in the house so I feel it just isn't being taken care of.

I want an easy life and would rather have peace of mind than an extra 10 grand or whatever in the bank!

Original poster

shinyblackgrape · 16/12/2011 17:19

Mill - that is exactly how I feel. It was my lovely little home which I looked after and nothing seemed to go wrong. Now it is non-stop and, although the letting agent assures me this is not the case, I feel the same: that things are not being properly taken care off.

OP posts:

MillontheFloss · 16/12/2011 17:28

Mine's a flat in a Victorian house so thinks like damp are common but I used to just leave a window open every now and then. Hence, no damp! Maybe things like the washing machine/ oven were just coming to the end of their lifecycle but it seems like a financial drain at the moment.

The estate agents take repair costs straight out of the rent the tenants pay to them. I get £500 and this last 6 months there has been at least £100 deducted every month for something or other. The last two months it was £350 each time for oven and washing machine. The mortgage I need to cover is £500!!! Nightmare. I have a mortgage on our new place too so it cripples me most months!

Original poster

shinyblackgrape · 16/12/2011 17:43

OMG Mill - you sound just like me.

By the time I have paid the factoring charge (£35 per month), insurance (£35 per month) and the letting agents fee (£100 per month), I am £150 short even to pay the mortgage. I can absorb it at the moment as the flat has appreciated very well fortunately due prices in Aberdeen not crashing but I can't be bothered with this at the moment and definitely don't want the stress when/if I am on mat leave.

OP posts:

MoreBeta · 16/12/2011 18:12

shiny - looking at my town (in England) at houses for sale and for rent that 5.6% yield sounds quite good for BTL.

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