Selling a tenanted property
8 Feb, 2017
It’s not unusual for a landlord to decide they want to sell a buy-to-let property with the current occupiers remaining as tenants.
This can be for a number of reasons but the most common reasons we hear are because they want to retain the income while the property is on the market or they just don’t want to disturb the tenants.
If you are thinking about selling a tenanted property here are some things to consider:
Speak to your tenant
It’s a good idea to be open and honest with your tenant about your plans. You will need to keep them onside throughout the process to ensure viewings can go smoothly. Remember that 24 hours’ notice in writing to the tenant is required before a viewing - and they have a right to refuse if it is inconvenient. And, if the tenancy agreement doesn’t cover the subject of viewings you may need to rely on the tenant’s goodwill.
Restricting your market
By selling a tenanted property you will greatly reduce the potential number of buyers you have from the whole market to just landlords, aspiring landlords or investors. This could mean your property will take longer to sell.
This market restriction, and the length of time it can take to sell, can mean you may get a slightly reduced price for the property. However, having a tenant in the property means you will get rental income right up until the day of completion and you won’t have to pay bills such as council tax.
Ready made business
Having a tenant in situ can be an attractive prospect for a landlord. It means they can start earning money from the property straight away.
As a landlord deciding whether you sell your property tenanted or not is a decision you will need to make for yourself depending on your personal circumstances, the length of the lease left for the tenants and the relationship you have with them. You may also want to take into consideration the new tax regime for landlords which comes into force in April 2017. This is likely to reduce profits on buy to let property.
If you would like to find out more about the subject, or discover the market value of your property, please call us on 01903 331247 or email firstname.lastname@example.org