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Original poster

How to tell tenants we are thinking of selling?

27 replies

MyMorningHasBroken · 08/01/2018 19:53

Ok, we are thinking of selling our rented out property as we live to far to maintain it properly now.
The tenants have been fairly good and have been there 2-3 years so they will be quite settled.

Just wondering which is the best way to approach the subject?

Obviously we will give them the due amount of notice at least.

Also, Are we able to get a valuation on it while they are still there?

What is the market like for selling with tenants?

We have not done this before so any advice on how to handle it would be good.

OP posts:
BigBairyHollocks · 08/01/2018 21:45

Bumping for you OP,because we are in the same position and also don’t know what to say to the tennants,they have been there for five years and I feel awful about having to sell.We had originally planned to keep the house but the second home stamp duty just makes it untenable.We have been good landlords and them good tennants so it’s a pity all round.

ShiftyMcGifty · 08/01/2018 21:55

You don’t. That is a shite thing to do saying we are thinking about but haven’t made up our minds... tenants aren’t your sounding boards.

Decide what financial decision you need to make. Estate agents can give you rough idea based on your last advert with a floor plan/photos. If you decide to put the property up for sale, you then speak with them about what timeframe would be ideal for them, and how accommodating they’re willing to be about viewings and keeping a “show-home” for views for how long.

They can refuse you and an estate agents entry full stop. No viewings, no evaluation visit. It doesn’t matter what you put down in your tenancy agreement - it doesn’t trump the law and no police officer is going to tell your tenants they must grant you entry (because they don’t have to)

So be very, very respectful of the inconvenience you are asking of your tenants for your sole benefit.

Hellywelly10 · 08/01/2018 21:57

I dont think it would ever be easy. I think you need to be sure you want to sell before telling them. Make sure you know how long the notice period is in the tenancy. You will need to negotiate with them re letting an estate agent in to do a valuation. there may be something in the tenancy regarding letting people into the property . You'll need to write to them stating when the notice period is. They may need it in writing for the housing department.

Angryosaurus · 08/01/2018 22:01

Second home stamp duty wouldn't apply if you were buying/selling your primary residence (despite owning other properties) Big.

Missonihoni · 08/01/2018 22:02

I would pop round to tell them in person and then tell them you will follow up in writing .

It would piss me off to get a letter or text or email etc.

Timeforanamochango · 08/01/2018 22:03

It depends if you’re looking to sell as an investment property with a tenant in place or planning on evicting them and selling as vacant.
For what it’s worth the market is good for tenants in place if you have a good yield and good tenants. BIL sold his house with tenants via an investemnt estate agent, sold to a buyer in Hong Kong in cash for full asking price in 24 hours with no viewing.
Good for him and worked out great for the tenants as the landlord was overseas he wants them to stay as long as possible.

Smoochyschmoo · 08/01/2018 22:04

Our last house we were in 5 months when we recorded a notice to leave as he was selling - pretty shit as we were just getting settled and it was almost xmas.

This house we were told it would be put on market after some work was completed, that was a year ago so we’ve been on edge waiting to see what would happen, in the end we’ve given notice to leave. The uncertainty wasn’t nice - so there’s no perfect option I guess!

I wouldn’t say anything until you’ve made up your mind, unless it depends on the valuation, in which case you’d need access for that so they’d know.

Cheesecake53 · 08/01/2018 22:08

This happened to me last year. originally I was told we could stay "for ever", but then I always knew that could not be true :) Nevertheless my ll sent an email saying they have to sell unexpectedly and they offered us to lower the rent for the time when viewing take place and also said they try to sell it to another ll. This all smoothed it over as much as it could and took about four months until an offer was accepted and then notice was given.

cornishmumtobe · 08/01/2018 22:10

Make up your mind first then if the decision is to sell tell them before you get an estate agent involved so they have the opportunity to look at finances and see if they want to buy before it goes on the market.

Original poster
MyMorningHasBroken · 08/01/2018 22:16

Well of course we wouldn't tell them before we have finished deciding and we pretty much have.
Can't we wait until the contract expires?
If not, surely that means we can never sell the house and they could stay there for as long as they want?

OP posts:
GiraffesAreNotShort · 08/01/2018 22:24

We were in a rental and were told just after our 6 month renewal (been there 2 years on rolling 6 month contract) that the LL was thinking of selling when the 6 months was up. That was a really decent amount of notice.

We left 2 months early and over-lapped tenancies to allow ourselves a choice and because we moved into a brand new property, again rented.

Are you looking to sell it as an investment property to another LL or empty? That is the big question.

I would decide, then speak to them, on the phone if you can't arrange in person. Give them time to think about what they want, do they want to buy it from you? Do they want a new LL or to move out?

kirinm · 08/01/2018 22:36

It's always annoying when a LL gives you notice as they intend to sell - but I suspect most tenants anticipate it. I would be very honest and open with them. I'd tell them before you put it on the market and be prepared for them to move out before it sells. When I was a tenant my LL and her chosen estate agents acted like total dicks so we left. She couldn't sell and had an empty flat for several months. And then had to rent it out again.

Actually, I would make sure your estate agents know your tenants rights and deal with the tenants nicely.

LinkyPlease · 08/01/2018 22:41

I'm pretty sure you're wrong about that angry otherwise there is massive scope to constantly flip your designated primary home. MPs did this in the expenses scandal, but that's for expenses, not stamp duty payment. And that all happened way before the stamp duty changes to second homes came in.

I'm in a similar position OP except my tenants have known since day one we were only planning to keep the flat for two years. I still feel super awkward about giving them notice in a few months though, they're clearly hoping we'll change our minds. And they're friends so I feel even more bad. Not sure how quickly our flat will sell so not sure when to give them notice - I don't want to evict my friends then sit on an empty flat for many months paying the mortgage. Wish I wasn't in this position Sad

SmileAndNod · 09/01/2018 06:53

As a tenant who is about to move out here's what NOT to do
Don't tell your tenant that you're thinking about it
Don't get your letting agent to lie and pretend that you're actually just toying with the possibility of selling and or extending.
Don't leave your tenants in limbo for a few weeks by avoiding any contact
Don't fail to keep appointments (twice) for someone to take photos for floor plans / extension scoping
Don't phone your tenant and tell them your selling after the new year, happy Christmas speak to you in the new year.
Don't let your tenants find out 5 days later that you are selling their home / place they live by them stumbling across it (and aforementioned photos of their home and their stuff Shock) on RM
Don't phone them the day after they find out by accident saying you've arranged viewings for tomorrow, when officially they've still not been told it's being sold.

Tell them once you've decided that you're selling with as much notice as possible for them to find something else. Rentals move very quickly so if they find something perfect for them maybe see if they can be released from their contract early to allow them to move and for you to proceed with your sale? And also understand that whilst they're still paying rent, they are entitled to have quiet and peaceful enjoyment of their home, without interruption.

Whatever you do please don't behave like ours have. It has caused no end of stress. I'm sure you wouldn'tSmile

Angryosaurus · 09/01/2018 07:26

The flow chart explains the second home stamp duty rules well linky

specialsubject · 09/01/2018 09:17

Make your mind up.
You can sell mid contract to another landlord. ( is the epc above f?)
Otherwise, advise that you will not be renewing the contract as early as possible. Issue the section 21 for the end. Wait for them to go. If they decide not to you are looking at six months or more to the bailiff.

Wait until it is empty before marketing. Much easier. Yes, no rent once it is empty but that is how it is.

ApacheEchidna · 09/01/2018 09:25

You have every right to sell your property.

Your tenants deserve compassion and understanding given that you exercising this right throws them into an insecure housing position.

  1. make a firm decision - do not toy with the idea and put them through hell then decide not to sell after all.

  2. offer them "first refusal" before getting estate agents involved. You will be able to accept a slightly lower price than you would on the open market as you will be saving on ea fees as well as a lot of your own time and hassle. They will be able to offer slightly more than they would be able to on the open market as they will be saving on moving costs.

  3. if they can't buy, then offer them a reduced rent to compensate for the inconvenience while they are living there during the marketing process. Agree reasonable limits to when viewings can take place - they have a right to the quiet enjoyment of their home without regular invasions. Allowing viewings at all is a kindness from them. Also agree to release them from their side of the contract early if they find somewhere they want to move to.

  4. unless selling to another landlord you will have vacancy - don't try to avoid it. No one who intends to be an owner occupier and who has a competent solicitor will sign contracts until the property is vacant. You will therefore need to give your tenants notice as soon as you accept an offer, if not sooner.

Woodfordhound · 09/01/2018 09:38

Our tenants had been in for 5yrs and had 2 young children so we felt really awful but we needed to extend and could only afford it by releasing the equity in the other house. So we gave notice but waited for them to leave before putting it on the market. They left it in a very good state, we tarted it up andit sold within 48h. The neighbour told me the mum was crying as they left which is awful. We got into it accidentally due to relocation but I wouldn’t want to feel responsible for that sort of thing again so we haven’t looked to buy something else.
Be honest with them, give plenty of notice and make sure the EA you choose is sympathetic to their situation.

GETTINGLIKEMYMOTHER · 09/01/2018 14:20

Please don't expect them to allow viewings/estate agents coming round, while they're still there. I've heard of LLs offering a reduced rent in return for allowing viewings, if tenants are happy with this.

I say this as a LL myself. I wouldn't expect my tenants to put up with anything I'd hate myself, and that would include random strangers in and out.

thecatsthecats · 09/01/2018 17:09

I will be quite honest, and say that our landlord who sold our flat behaved so badly about the whole thing that we jumped ship as soon as we could feasibly leave, leaving him a 3 month void in rent whilst the sale went through.

We found out our flat was sold by checking online, and the next day by badgering them that the new owners would not be renting to us. This was after we'd begged them to delay painting the place for sale by just one week because we had health problems and job interviews and wanted to prepare in peace, and arrange to be elsewhere.

If they'd been decent and told us, we'd have been more relaxed, but I had us moved out in just under four weeks to give them minimal time to screw us around.

ShiftyMcGifty · 09/01/2018 18:28

Thecats, I’m really Shock that your flat was sold while you were tenants. All solicitors would insist the flat was vacant before completion, so your new owner must have been another landlord.

SmileAndNod · 09/01/2018 19:31

We're going through the same thing theca ts. Our LL (we feel) has behaved so badly. We also found out by looking online. We got our notice 2 days before Xmas.

We move next month. Weve loved it here but now we'll be relieved to be shot of the whole sorry mess. Oh and we're not going to be overly helpful and accommodating when it comes to viewings either. Though hopefully they've realised my now that it won't sell until we've left so they may as well wait.

19lottie82 · 09/01/2018 22:09

Don’t sell with tenants in situ, for many reasons including

1 - Its not fair on tenants to ask them to allow viewings ect, and they don’t have to allow them. Even if they do, what’s the chances of it being as clean and as tidy as you’d like?
2 - it will put off so many potential buyers, I wouldn’t even look at a property that had tenants till living there.
3 - any reputable lawyer will advise his clients (buyers) not to proceed until there is vacant possession, this could take a long time if the tenants decide to drag their feet.

Selling with tenants reduces your potential buyers buy a huge amount as you will only be appealing to BTL landlords, and they will do everything within their power to get the place for a rock bottom price - is it really worth the hassle?

Give your tenants the correct notice and once they’re out spruce up your (vacant) property then put it on the market.