Any Landlords sold or selling up? Can't decide what to do...

[LLamaLandlord]

Been a LL for over ten years and I like to think I've been fair and responsible. I've had a couple of excellent tenants, but my current one is causing me stress. It's hard to describe without give identifying detail, but it's just lots on on-going low level stuff, lack of respect for the property and lying about things. She is also very rude and aggressive in all her emails, messages etc.

I'm just wondering if perhaps it's time to sell up? The potential legislation coming in next year will make everything much more difficult if I leave it and as DH pointed out, I could now get the same income by putting the cash in a savings account at the moment, without any of the uncertainty or hassle!
I'm aware it might take months before she leaves anyway, which would mean I might get the house back to sell for next spring if I'm lucky!

Any landlords grappling with similar decision-making and around to share their thoughts?

I think I would sell up. The government is under pressure to squeeze landlords due to their own past failure of selling council housing off, not ensuring house builders build enough/release land etc and prop up property prices for votes, so they have no choice but to somehow squeeze small time landlords who are painted as evil capitalists by the press.
If you get a better & safer return on your investment elsewhere then yes, sell.

When our current tenant moves on we will be selling.

Not a place to be a landlord right now...

@LLamaLandlord
We did not sell with tenant in the house. Not fair on them. If you have a difficult tenant, will she make viewings difficult? Be messy etc? She should move out on the date required on the S21. If she’s awkward, she won’t. How long anywhere takes to sell is a guess isn’t it? We marketed in early November and it sold. I would have loved to have sold pre Truss! But we couldn’t. It was just other people in the chain that caused delays. Not the actual buyers who were good buyers. I’m glad it’s sold though.

If you're unsure of the steps for notice and selling there are a few dedicated landlord forums around, I think. Should be able to help you out.

Yep, just had a sale fall through and another on the market.

Fed up of online abuse and a complete lack of understanding about the rental market. Good landlords spend a fortune meeting loads of regulation, bad landlords ignore everything, others have bogged off to the short-term rental market to avoid regulation and taxation changes, taking their property out of the housing stock. Have property in Scotland, so very stringent legislation.

Done this for 20+ years, really well-qualified and experienced, dead ethical in my dealings, fed up and selling up (as people leave, which is very infrequent and now worried by my mortgages ending plus 13 rate rises over this last year or so. Now paying £30k more in mortgage now than before, more than the rents, so no returns and will be taxed anyway.)

I'd put it on in January, no problem.

We've had ours for 10 years but will sell up. The mortgage will increase by at least £7k a year in March which just isn't sustainable for us. Where will our tenants go? There is next to no social housing in the area.

The EPC thing is bonkers with absolutely no proper thought. Victorian housing stock just can't be brought up to a C in many cases without ruining the house..

We spent over £20k on it during lockdown- new kitchen, bathroom and boiler which will be money down the drain as prices plummet. It's meant to be our pension.

Thanks, I'm clear about the legal obligations etc but of course can't predict whether my tenant will go willingly or be difficult and result in protracted legal action. I'm not sure it would be worth her while as I think the S21 should be watertight, as I've always done everything by the book.

You could always incentivise the tenant with some sort of discount or refund once she has vacated?

Selling one and keeping the others. It’s mostly because of the area it’s in and how much the prices have gone up. I can get more money but investing the money elsewhere.

The gov had their silly EPC rule will never happen.
I’m not selling on that basis.

We’re in a similar situation, 2 flats rented out, no mortgage, net yield around 6%. Both are tenanted, 1 tenant is very long term and flat will need quite a lot of work when she moves out (currently rented below market value). Not in an area where house prices rise and there always seems to be something that needs doing. We would need to sell to an investor as it would be hard to separate the 2 properties.

@TwoBlueFish "there always seems to be something that needs doing."

THIS! How is it that rental properties seem to have so many more day-to-day repairs/ problems than our own homes? I really don't know what my tenant does to manage to destroy things so effectively. Things get broken in a way which can't possibly be through 'normal wear and tear'

Sorry, how can you reach a Grade C insulation on a grade listed property with sash windows?

Or a, flat where the leasehold management company won't upgrade the windows....

I had no one who did this. Fortunately. Most people were decent.

I had one (in 25 years) who got behind on the rent. The police ended up asking me if I knew where he was. Would not say why. House was not damaged but he was not pleasant to deal with. I never got the rent owing of course. It is very annoying when people take advantage. I think all you can do is look at your contract (rolling?) and see when you can issue s21. You might get lucky and she moves out when required.

Meant to add: mortgage broker on radio 4 earlier said first time buyers still looking. Trading up people not so much. So evaluate where your property sits and adjust expectations.

I hear you.

Currently dealing with tenants who quite happily flooded the bathroom and into the bedrooms below for several months - didn't let me know there was a blocked drain in the shower and just let it flood the place . And don't get me started about refusing to heat & ventilate the place and trying to make it my problem.

I have 10 btl properties. I've just sold one house to my youngest son for £55 under value and had it all done up for him. Capital Gains Tax was very high as I'd owned it for almost 20 years. I might need to sell 3 Victorian 3 bed terrace houses if EPC C is enforced as I've had quotes for £16k each for internal insulation plus it will make rooms smaller and all need redecorating afterwards. I'm holding off as I have 3 families with children in those houses and they have lived in them for many years. All other houses are already EPC C so no problems with those. Mortgage rates are also rising and 2 come out of 5 year fixed in next few months and my mortgage rate will go up by £240 per month and £215 per month. I obviously can't put the rent up more than £50 per month so not sure what to do on those. I have good tenants who look after the houses and pay rent on time.

These properties will be given exemptions. Listed buildings often are.

I am in the process of selling to a FTB. I'm not prepared to bring house up to an EPC, C rating. Though I think it will take years for it to be law. Though I've been told by my EA you can get exemption certificates if you do work over a certain amount.

I want to sell but am stuck with a short lease so waiting to see if there is any help with marriage value in the proposed leasehold changes coming up . The other thing will be EPC changes as my property is a Victorian flat which will be difficult/ expensive to meet .

I can't see things getting any better OP - there is a real general culture of hatred of landlords. I'd serve notice and sell up.

Doesn’t HMRC take a dim view on selling assets to family members at lower than market rate?

There is nothing worse than having a shit tenant. I’ve been a LL myself for over 10 years and I’ve had my fair deal of crap over the years… so much so I sold my two rental properties earlier this year that I managed myself (one to a tenant in situ who was keen to buy) and the other to an external buyer. I then invested in a block of flats that are managed by an agent and bring me in much much more and I don’t need to be as hands on as I was!!