A common question asked by landlords thinking of selling is "Can I sell my property with a tenant in situ?", the simple answer is yes, however there are quite a few issues to consider and resolve before putting the property on the market.
Things to consider when thinking of selling a tenanted property:
- Communication with your tenant - communication and discussions with your tenant are paramount, naturally a tenant will undoubtedly feel unsettled by your decision to sell, however with re-assurance that you are looking to sell only to an investor to take on the tenancy a tenant is normally comforted by that news.
- Condition of the property - Selling with a tenant in situ will only work if the tenant keeps the property in good order, a dirty property or unkept garden is unlikely to appeal to an investor, and certainly not attract the best price. Sometimes minor issues can be resolved with honest and upfront conversations with the tenant.
- Rental Yield - One of the biggest factors in a buyers decision-making process will be how much the rent is and what is the rental yield? Often when a tenant has been in situ for a long period of time the rent may be lower than the current market rate, sometimes in order to make a sale with a tenant in situ, it may be necessary to review and update the rent to be inline or close to current market value, this again may require and upfront and frank discussion with your tenant.
- Compliance - Is your tenancy compliant with current legislation? Any potential buyer will want to ensure that everything is up to date and compliant. Common issues tend to revolve around expired gas safety certificates, expired (or non-existent) Electrical Installation Condition Report, deposits (paperwork not in order, deposits taken over the legal limit or not protected in accordance with the regulations) - we can do an audit before you put your property on the market to ensureyou are compliant or to advise on any remedial action needed to mitigate any issues.
Here at Forum Sales & Lettings we are experienced in selling properties with a tenant already living in the property, however, it does rely on a good relationship being built between all parties, the agent, the tenant and the landlord to make the transaction work and run as smoothly as possible.
If you are thinking of selling a tenanted property and wish to discuss how we can help please do contact us.
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