When a landlord comes to sell an investment property, they are always faced with a dilemma.
Do they serve notice on the tenant, not knowing when a sale might complete, and suffer a long void period?
Or do they sell the property with the tenant in situ, thereby avoiding the dreaded void period whilst a property is empty.
The second option, at first glance, sounds the most attractive, however, there are a number of issues to consider:
1. A tenant is entitled to “quiet enjoyment” of their rental property, and, unless it is expressly stated in their tenancy agreement, they are not obliged to allow viewings. Tenants have many legitimate reasons for not allowing a viewing, such as a new baby in the home, or working shifts, or they may simply not wish to co-operate, as it their right.
So a landlord selling a tenanted property may find it hard to gain access for viewings.
2. A property with a tenant in situ may not show well to prospective buyers if the tenant is not keeping the property clean and tidy.
3. Tenanted properties generally sell to other investors, and they will typically be looking for a discount.
So vendors need to weigh up whether to suffer a long void period, or lower the asking price to reflect that the property is tenanted.
If they opt to serve notice on the tenant, then they can expect a sale with mortgages and chains involved to typically take anything from 3 to 6 months. So if a tenant moves out at the end of the 2 month notice period, the landlord has a potential 4 months of paying the mortgage with no income from the rent.
If the sale collapses, as a significant portion of property transactions do, then the landlord is right back to square one and the process could take even longer.
Additionally to this, the insurance premium on the property will increase due to being empty and it may become subject to asset theft or crime during that period.
Empty properties can also develop problems that no one is aware of, and therefore these problems can escalate. They can be such issues as a leak, a rodent infestation, or maintenance issues.
So, if you have decided you would prefer to sell your rental property with a tenant in situ, then what are your options?
You could contact a local estate agent, but they mostly cater to the owner/occupier market, not to mention that they typically charge between 1% - 3% commission plus value added tax.
You could try one of the online estate agents, but how effective are they at selling properties? Reviews about them are not always favorable and their demographic is also mainly owner/occupiers.
You could go to an auction, but it will cost between £400 to £600.00 for your property to be registered for sale in the auction catalogue, and there is no guarantee that it will sell on the day.
You also must wait for a suitable action date to come around, and it could be weeks or months in advance.
Your final option is to sell to a professional property buyer like ourselves. Open Property Group have a cash fund to purchase your property quickly and with no hassle. We can buy any type of property with sitting tenants.
We are a family-owned business which has been in operation for many years and we pride ourselves on our ethical, professional, and quick service.
We will buy any tenanted property in England and Wales in any condition with any type of tenancy.
There are no estate agent fees and we will even pay your legal costs too.
Our hassle-free property buying service means money in your account on a designated day of your choosing. No viewings, no voids, no worries, no uncertainty. We offer a fast and professional service that gives you complete peace of mind over the sale of your tenanted property.
Get in touch for a no-obligation cash offer today.