Selling Your Rental Property: Tenanted or Not?Written By PropertyLoop March 04, 2021
If time has come where you’re thinking of selling your property, it’s important to decide whether you sell it in situ via an online property agent, with your tenants still there, or evict them first. This can be somewhat of a conundrum. The most important part of the equation is defining for yourself why you’re selling in the first place. Is it because you don’t want to be a landlord anymore? Is it to raise money? Or is it because you’d like to reduce your property portfolio for financial reasons? All of these factors could be decisive when it comes to action which needs to be undertaken.
Check Out the Market
If the value of your house is rising with demand, it may well add a problematic dimension to selling it if there are still tenants inside. Are you likely to get a better price if it’s empty? Looking at local housing will help you identify the market in terms of renters and private homeowners. If your street is filled with the latter, then selling onward to a private landlord – with the tenants still inside – could be a constructive way to go.
Also, the type of buyer you end up selling to will no doubt have their own ideas about what to do with the property. If you’re selling to a landlord or an investor with the tenants still there, this may be beneficial and will likely mean that you’ll be able to collect rent right up until the property changes hands. However, you’ll need some extensive information on the property to help attract investors:
- How much money is your property currently making? They will want to know their potential return.
- Has it been recently updated with things like double glazing or a new boiler?
- How long have your tenants been there? Long term tenants show that longer, more desirable tenancy agreements are easily achievable.
There are also many, many people out there looking to purchase property who are not investors. For this, you will need an empty property. There are a few options to consider here. Firstly, you could come to an arrangement with your tenants, although they are not legally obliged to allow viewings of the house whilst they live there. Or, you can serve them a Section 21 eviction notice. Making sure tenants vacate the property in due course will also give you plenty of time to update it and do any decoration to help show it in the best possible light.
Many tenants, however, are keen and willing to enter into discussion with their landlords. You may even discover that they are interested in purchasing the property themselves, saving you a lot of hassle and removing the need to evict them prior to putting it on the market.
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