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Original poster

Renting short-term from the person you sold to, is it straight-forward?

32 replies

CatAndHisKit · 05/02/2021 02:16

I may haev that option, it's really between that an dfinding a place to rent short-term (Airbnb) as my search to buy is still ongoing.

This is an experienced landlord, but I've read on here that solicitors really discourage thei client to do this, as short term contracts are bad for the landlord, it would appear.

The buyer mentioned this option initially, not sure if still on, but I need to start looking now for Airbnb if this is a bad idea. I@m downsiz\ing and wouldn;t want to pay a full rental price as it's just me currently in a bigg-ish house, and I can't afford a high rent. My agent said, he nnay offer a discount as he's not going to convert the house immediately, so will stay empty for a bit.
I wonder if anyone done this, and was it on a simple monthly rolling contract - which I'd prefer - and are there same rules re notice / or did you sign an agreement for the date you must vacate?

I can see that from their point of view, there is a risk of the 'tenant' not moving when promised or generally being difficult. I'm not like that at all but they don't know me.

OP posts:
Original poster
CatAndHisKit · 05/02/2021 02:17

sorry for typos!

OP posts:
CodenameVillanelle · 05/02/2021 06:46

The issue is that you can't just have a monthly contract I don't think - once you live there and pay rent you have all the rights of a full AST meaning he would have to go to court to evict you if you didn't leave.
It's a small risk from his end but if your onward purchase fell through and you were not prepared to rent somewhere else then he would be stuck with you.

Shouldbeworkingnotreadingtalk · 05/02/2021 06:55

We rented for 3 weeks from our new buyer. . . They weren't using the house, and it gave us time to give the one we were moving into a good clean, lick of paint etc.
Solicitor drew up the contract. It was easy, all parties happy. We did pay market rate rent though.

Original poster
CatAndHisKit · 06/02/2021 01:51

yes, CodeName I think this will put him off.

Shouldbe so as mentioned above, did yours not have any trust issues, so to speak? What sort of contract was it? I just think they tend to be standard now, or ones for a lodger which are more flexible. I's an ideal scenario.
I'd pay the market price even just to avoid two moved and HUGE storage costs!
I think mine will will not go for it tbh - I;m looking at Airbnb as well, but never did those before so a bit worried. They are likely more expmsive plus storage costs .

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alexdgr8 · 06/02/2021 02:25

i have heard that there are legal difficulties re house insurance, and liability for repairs etc.
the new owner would have to take on a whole host of responsibilities as a landlord, which they had no wish to do, simply become an owner occupier.

fallfallfall · 06/02/2021 03:03

Dh and I rented for 6 months from the group who purchased our home. They were buying it as a future rental anyway.
We worked together and the agreement was via handshake. The monthly rental was reasonable and prepaid.
It made packing easier.
However they routinely entered the home to make minor changes.
The final clean was problematic as the new owners were so close to us. And I never realized how many nooks and crannies had been neglected...

TheTeenageYears · 06/02/2021 03:40

From your perspective it's fine. From a LL's perspective they need the security of an assured tenancy agreement and the minimum duration recognised in law is 6 months. There are also added risks at the moment for LL's who are unable to evict tenants in the normal pre covid time frames. I'm sure the LL's solicitor will try and talk them out of it but they may still think the risk is worth it and go ahead. The other alternative would be more along a holiday rental contract, particularly as you won't have another home so that could work. I'm not sure on the legal protections for the LL that type of contract would bring but could be worth investing if there is a reluctance purely due to LL needing legal protection.

murbblurb · 06/02/2021 11:55

England - Not a matter of trust but of law, especially in the current situation. You can move in and pay no further rent and they won't be able to do anything for 18 months. No such thing as a short term contract or a valid agreement to vacate. They will also need to fulfill all the legal responsibilities of being your landlord.

No risk for you but they would be nuts to do this.

User0ne · 06/02/2021 12:02

If you use a holiday tenancy agreement you should be fine. It gets around the 6m minimum let but the tenant has less rights

Trillo · 06/02/2021 12:20

Have you exchanged but not completed?

If so, can you ask for an extended completion? You may have to pay some of your buyer’s interest costs but it will be buttons compared with an Air B&B.

Trillo · 06/02/2021 12:26

You probably don’t want to hear this, but it’s a really bad idea to sell if you haven’t even found a house to move to.

If you’re desperate to sell and worried about losing your buyer, just find yourself a rental property you’re okay with, and take out a 6 month AST. By the the time you’ve found somewhere, exchanged and completed, those 6 months will be up. It also means you can do any work required to your new place before you move in.

GU24Mum · 06/02/2021 12:27

It's far more risky for the buyer than for you so if he/she is happy and you are too, then there's no reason you can't arrange it. Just check though that you're comfortable with the idea before you relax and stop looking at removal people as that will be hard to gear up a day or so before completion.

RIPWalter · 06/02/2021 12:33

Our current house was an Airbnb for about 6 months before we bought it, we had tenants lined up for my old house (now a BTL) and solicitors were dragging their heals on completion, so we paid previous owners £50 for a weeks Airbnb (unfurnished) and neither solicitors new anything about it.

The hardest part was resisting the urge to rip out the awful fitted office furniture in one of the bedrooms. As soon as we completed my friend came up and help me remove it all.

Original poster
CatAndHisKit · 07/02/2021 02:00

Thanks, all - yes I've mentioned initially that for the buyer it's not ris-free and solicitors often advise against it. I think they'll withdraw that offer now - I suspect they offered as an incentive to sell to them but didn't necessarily mean it seriously.

But if there is no such thing as short -term agreement, how does the Airbnb work? I've had a look and people gladly let for a month or more (I thought it was more days/couple of weeks) - so how do they get protected from a guest not vacating and not paying?

Also, regarding Airbnb, can the owner give you notice suddenly when you are within your agreed term, or would they have to compensate?

To the poster who advised renting on the usual AST - the problem is two-fold, I can't afford losing so much (and wuldn;t go into a studio for months), and I'm self wmployed so even without covid a problem with work refs, even though I could pay upfront.
Once I find a house, it won't take me months as I'll be a cash buyer, two months shuld be enough, three tops, I'm looking for no chain / people able to break the chain. I agree that for many renting is best.

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Silkiechickscat · 07/02/2021 02:05

We did this and was fine for us but we knew the person who was buying it from me so he trusted us. We just had to give a month's notice, paid market rent and no minimum term.

Original poster
CatAndHisKit · 07/02/2021 02:27

I wish this was the case for me Silkie - it's a ream situation to sell to someone you know and trust (and vice versa) as the whole sale process is not risky / stressful.

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Anordinarymum · 07/02/2021 02:44

On a different note but the same theme, I had made an offer on a house and they accepted pending on the sale of my house.
The house was empty and had been for some time. The lady had died suddenly and the family were selling it, so there was no onward chain.
I asked them if I could rent the house until mine was sold.
They said no.
If I had rented it I would have discovered everything that was wrong with it and all the lies they told, so either I would not have bought it at all or at least at the price they wanted, and they knew it so rather than take six months rent, they left it empty until mine was sold.

CodenameVillanelle · 07/02/2021 07:43

@CatAndHisKit

Thanks, all - yes I've mentioned initially that for the buyer it's not ris-free and solicitors often advise against it. I think they'll withdraw that offer now - I suspect they offered as an incentive to sell to them but didn't necessarily mean it seriously.

But if there is no such thing as short -term agreement, how does the Airbnb work? I've had a look and people gladly let for a month or more (I thought it was more days/couple of weeks) - so how do they get protected from a guest not vacating and not paying?

Also, regarding Airbnb, can the owner give you notice suddenly when you are within your agreed term, or would they have to compensate?

To the poster who advised renting on the usual AST - the problem is two-fold, I can't afford losing so much (and wuldn;t go into a studio for months), and I'm self wmployed so even without covid a problem with work refs, even though I could pay upfront.
Once I find a house, it won't take me months as I'll be a cash buyer, two months shuld be enough, three tops, I'm looking for no chain / people able to break the chain. I agree that for many renting is best.

Airbnb has certain safeguards such as only letting to people with positive reviews but I suspect if an Airbnb guest had been in an entire property for a while and decided not to vacate they would have a case to argue that their arrangement is a tenancy if they were taken to court. I've no idea how a court would judge on that. With an Airbnb booking the host can cut it short by cancelling mid stay but they will get heavy penalties from Airbnb which might affect their chance of hosting in future but if they were only doing it as a bridge before selling they might not care about that
daisyphase · 07/02/2021 16:26

If it's a very experienced landlord, then they may well be prepared to take the risk as they can smooth any risks that you don't pay agreed rent, etc, against their portfolio. Also if they're going to renovate, condition of the property when you leave needn't be much of an issue. It's worth asking them again if the option is still there.
There are no risks that I can think of on your side. I think you'd find that you could leave in your own good time and would find moving much less stressful.

DinoHat · 07/02/2021 16:41

Are they buying it to live in or as a buy to let?

DinoHat · 07/02/2021 16:49

If they’re buying it as a BTL I don’t understand the issue. It’s a similar risk to any other tenancy.

Original poster
CatAndHisKit · 09/02/2021 01:58

Dino buying to rent but to normal long term tenancies. But these would be AST tenancies, whereas I need to stay 1-2 months and wuoldn't commit to 6 months (too expensive as well as not needed).

daisy I will as if he could use a holiday let type contract / airbnb but I think youneed to be registered on that.

Villanelle (how long to wait for the next series, haha) - thank you. When you say Airbnb fines the owner, would that be shared with the suddenly evicted guest? It's a bit terrifying that you might be out of there in two days before you could find another place!
I had a look and airbnb choices are very, very limited in my area - I want the whole place, not sharing. They are either very large places, or often studios - lack of 1-beds and those can be very expensive if in a moderni block. I did see one that's very good but no tv in the house...
I wonder if it's normal to want to look at the place before renting? In normal times it's prob mostly tourists renting.

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Original poster
CatAndHisKit · 09/02/2021 01:59

AnOrdinayMum - oh no, what did they lie about? could you surveyor not see anything problematic? I hope they were not expensive to fix issues!

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DinoHat · 09/02/2021 08:14

Dino buying to rent but to normal long term tenancies. But these would be AST tenancies, whereas I need to stay 1-2 months and wuoldn't commit to 6 months (too expensive as well as not needed).

You could still have an ast it would just be a rolling one. I don’t see the risk factor at all - he will probably returb when you’ve left anyway.

LittleOverwhelmed · 09/02/2021 14:02

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