There may be a range of reasons why you want to sell your rental property. You might have financial issues and need to free up the capital or you could simply want to move onto new horizons and stop being a landlord altogether. If you currently have tenants, there are plenty of issues to consider, not least the rights of those currently renting your property.
Generally, the following rules apply, but with Northwood, there is another way!
Keep Tenants on Your Side
Firstly, it’s important to make sure you get your tenants on board. If they are not happy they can have a big impact on any potential sale. After you have checked your tenancy agreement and feel you have a right to proceed, make sure you explain the situation to your tenants and keep them up to date as much as possible as the sale proceeds. One option is to lower their current costs while they look for a new place to live and give them as much help as possible to find a suitable location.
Wait Until the End of the Tenancy Term
Of course, one of the most simple solutions is to wait until the current tenancy term has run its course. It’s still important to make sure that your tenants are aware of your desire to sell and to work with them if they wanted to stay and extend the tenancy. One solution might be to give them first refusal on buying the property but this will depend if they have saved money to afford the deposit and get a mortgage.
Unfortunately, if you have a contract for a set term, it’s unreasonable for you to ask the tenant to leave without their agreement. Tenants have rights under the law and should expect to live in the flat or house without you, the landlord, putting undue pressure on them. Get it wrong and you could find yourself on the wrong side of the Protection from Eviction Act 1977.
Auctioning Your Property
If you have your tenants onside, selling at auction has numerous advantages. Compared to putting a property on the market in the traditional way, you should expect a quicker sale. If you pick the right auction, you can sometimes expect to exceed the initial asking price when you get two or more people bidding for the property.
We offer a specialist service for landlords who want to sell their property without losing income and serving notice. With over 20,000 buy to let investors already using our services, we can offer the property ‘off market’ on our Investor Page and target your property directly at these investors. Not only does this negate any possible void period and delays in getting possession, it is attractive to investors as they get rent from the day of completion. This is particularly popular with our Guaranteed Rent properties as we can effectively guarantee the yield too.
Better still, it’s tenant friendly as the tenant doesn’t have to give up their home and isn’t inconvenienced during the process. tenants are far more willing to assist with viewings when they know they wont lose their home.
Call your local office for more information as to how we can help sell your rented property. Remember too, if you do experience any issues, our in-house legal team is there to help at a fraction of the cost of a Hight Street solicitor.