selling, to get rid of tenants or not?

[timwilky]

We have to dispose of my mothers apartment in a retirement complex.

So limited buyer base. How many would want a small single bedroom apartment in a retirement complex?

When mum went into a care home it was on the market for a year, not a sniff. But after all there were dozens of brand new apartments in the complex available. So to end the relentless management charges, 9 months ago we were able to find a tenant. That generated a little income. (Not enough to cover the care home bills though.)

Now, it has to go. But we are not in a hurry. (Unless my brother/sister need their cut). Do we give the tenant notice and mums estate then picks up the management charges whilst the place is empty. Or maybe renegotiate with the tenant for a shorter notice period and put it on the market with the tenant still in place with notice to quit kicking in on sale. That way at least the empty apartment would not be costing.

Would a tenant in place cause a potential buyer concerns? then again it would be nice to spruce it up to maximise the appeal of the place which we couldn't do whilst occupied.

Swings and roundabouts. Which way to go?


Edit

We intend to abide by the letter of the law if not nicer. The tenant has been brilliant.

[TamSV]

I was once a tenant in a house under similar circumstances.

I was such a good tenant I even showed some potential purchasers around the place when the landlord was busy.

However, I wasn't in a particular hurry to move (due to the above, I was paying a very attractive rent) so the viewers I showed round got very in-depth information about the maintenance issues the house had.

If you can get round that I'd be tempted to leave the tenant in-situ, unless you're confident the place will shift very quickly.

[Spank86]

well what is the notice period?

A house/flat sale rarely goes through in under a month so someone shouldn't be too bothered about waiting a couple of months to move somewhere..

If they've been in 9 months then I'm also wondering what the original contract term is? If it's 12 then you could explain the situation to them and move them to a rolling monthly contract as oppose to another 12 month fixed term (if they're on fixed term that is).

Just a couple of thoughts.

[TamSV]

In terms of buyers being concerned about a tenant being in place I don't think that matters if they know the tenant is definitely leaving once the place is sold.

[shiftin_gear98]

Word of caution when selling your rented property.


I rented my flat out due to being unable to sell it, for 4 years to the same nice lady - though a management company, gave here a few months notice that we intended to sell as she had been the perfect tenant, got a buyer, she went round to view etc etc, liked the tenant so said to let her time expire. So we did.
Only for the now not so nice lady (insert own expletive) to decide she wasn't going to move out after all, and that I had to evict her!
The contract between us counted for sweet FA.
As the seller you have bugger all rights. Our legal system is screwed.


We very nearly lost the buyer, her mortgage offer ran out 2 days after the bailiffs finally removed her.


Finally got rid of her, at great expense, and still had to give her full deposit back as she hadn't damaged anything!


Talk about stress you just don't need. I hope your experience is nowhere near the same. (sorry for sharing)
I will not be renting out another property if I get the chance.


Good Luck.

[ClunkintheUK]

There is even the potential for someone to buy it and keep the tenant, if they are a good tenant.

[SvNewbie]

I remember always getting some info about Scottish law and the landlord deciding to sell when lease agreements back home.

Worth having a word with your solicitor?

[Red ones]

Ask one question.
If you wanted to buy would you want a sitting tenant? At work we sell without tenant if the buyer wants a tenant they can get one. A sitting tenant lowers the value of the property, the rent they pay and the yield on the property defines how much you're going to sell it for.