Selling a tenanted property and how Northwood can assist
When a landlord comes to sell a tenanted property, there is a dilemma to be faced.
Should the landlord serve notice on the tenant to sell the property with “vacant possession” or should the landlord sell with the tenant in situ?
Before deciding whether to sell a property with vacant possession, the landlord needs to consider the following:
1. The tenant has a right of “quiet enjoyment” of their rental property, and, unless expressly stated in the tenancy agreement, they are not obliged to facilitate viewings. They could decline to allow viewings on this basis alone, but there are other such legitimate reasons as the tenant being a shift worker or having a new baby in the home, and they do not wish to be disturbed.
2. Should the tenant agree to viewings, there is the issue of whether the tenant will keep the property clean and tidy for them. A tenanted property often does not show at its best and may be cluttered or not particularly clean. This may impact on prospective buyers view of the property and its value and could lead to a reduced offer.
3. If the landlord serves notice on the tenant, they are creating the risk that the property sale will not have completed by the time the tenancy ends and the landlord may be left paying the mortgage on an empty property. The time taken for a property sale to complete is typically around three months, although this can become much longer and there is always the danger of the buyer dropping out prior to exchange of contracts. This leaves the landlord with uncertainty about how long they will be paying the mortgage on a rental with no income.
4. Once the property is empty, the landlord then has to pay an increased insurance premium and standing utilities and council tax. The longer a property is empty, the greater the risk of asset theft, crime, or vandalism.
For these reasons, may landlords decide to sell the property as tenanted.
Clearly, tenanted properties are sold to other landlords who are not in chains and can generally complete more quickly than an owner/occupier buyer who may be selling their own home.
Selling a property as tenanted means a quicker sale, no void period, and none of the other concerns and issues mentioned above.
At Northwood, we have a large database of landlords looking to increase their portfolio and our local offices will know which landlord clients are in “buying mode”.
This means we can market your tenanted property to our landlord database as well as via the main portals, and we also have our “Investor List” which is specifically formatted to sell tenanted properties and those suited to investment.
So if you are thinking of selling your tenanted property, please do contact your local Northwood office and they would be happy to assist you.
Here are a few independent testimonials of our service whether you decide to sell with a tenant in situ or with vacant possession:
Jon Roberts – 5 star review for our Leeds office
“We have employed Northwood for 7 years as our letting agent. We have always received an excellent professional service from Andy and Adam. We have never had a flat vacant for more than a month, and the letting process has always been seamless.
We decided to sell the property. Jon has handled this from valuation to completion. He is an excellent ambassador for Northwood. I had full trust in him through the whole process, he always delivered what he promised he would do, and worked hard to ensure that all the hoops we had thrown at us were jumped through with ease.
On Friday we were delighted to complete and would like to thank the Northwood team throughout the 7 years of letting and the finally the sale. I fully recommend this branch” .
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“Brad” – 5 star review for our Basingstoke office
“On deciding the to leave the UK in 2010 I needed an agent with would let my house, as I didn’t want to sell at the time. Northwood’s fixed income contract ticked all the boxes for what I required. In the 5 year’s I used them as my agent it was a very smooth process. They sent me periodical updates on the inspections done on the house and if there was ever an issue with the house they came to me with a proactive solution to fix it.
I imagine some people struggle letting a house on the other side of the world but for me it was very easy and that was all down to Northwood.
After 5 year’s I then decided to sell the property and once again Northwood were professional in their dealings with me and always kept me informed throughout the selling process.
I couldn’t recommend them highly enough”.
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Ben S – 5 star review for our Peterborough office:
“My wife and I received excellent service from Colin, Andrew and the team at Northwood Peterborough.
We rented our property initially with Northwood for 5 years. During this time we were kept informed and the property was well cared for. This year we decided to sell our property to the tenant.
Colin and his team were instrumental in assisting us to broker a deal and then work towards completion.
His collaborative approach made all the difference and I believe resulted in a successful sale. As we are living abroad his service was even more impressive.”
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Lyn Trotter – 5 star review for our Edinburgh office
“I have dealt with Stuart and his staff for the last two years, firstly when renting out my flat and more recently when selling the same property.
I had a bad experience renting out my flat through Gumtree and was recommended to use Northwood by my brother and sister in law who had nothing but positive experiences of dealing with them.
I cannot praise them enough, particularly Stuart. They are professional, thorough and nothing was ever too much trouble for them. Calls and emails were returned and replied to promptly and I was kept informed every step of the way.
Overall it was a highly positive experience dealing with them and I would not hesitate to recommend them”.
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If you would like to discuss the sale of your rental property, you can find your nearest office >>> here.
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