If you’re a landlord looking to sell up, any current tenants you have may seem to present an issue. Aside from the disruption that the house sale may cause to their living, you may also rely on them to provide access to potential buyers and agents, which can delay progress.
It’s important to remember, though, that your tenants may actually be a huge asset to the sale of your property. Tenanted properties can be an attractive proposition for many buyers, and for yourself and your tenant, selling with them still in place can make things much easier. Here’s why.
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No Gaps In Your Income
If your selling situation means that your tenant will eventually have to vacate the property, they may beat you to it and give notice that they’re leaving. You may then be left in a financial bind. If your house sale drags on, you could be facing a lot of time where no rent is being paid, which can leave you out of pocket. It’s estimated that house sales can take up to 70 days on average, but things can always take longer.
By selling a house with tenants, though, you can ensure that there are no gaps in your income. Your tenant will continue to pay rent up until the house sale is completed, and will then simply begin paying the new landlord. Plus, they won’t be faced with any moving costs. It’s a win-win.
No Need To Evict Your Tenant
When selling a tenanted home, there may come a moment when you have to serve an eviction notice. That’s where the trouble can start. According to Stessa, eviction procedures can take several months and may drag on if your tenant decides to contest it.
However, if your tenant remains in place during the sale, there’s no need to get involved in any eviction procedures at all. Your tenant can carry on living as normal, with no disruption to their lives.
Easier Communication And A Quicker Sale
It might not seem like it, but selling a tenanted property can cause things to move much more quickly and easily. If your tenant knows that they will ultimately have to leave the property when it’s sold, communication can break down. They may stop providing access to agents or be slow to respond to your messages, leading to missed viewings and a slower sale.
On the other hand, if your tenants are to remain in place after the sale, you might find that things are much easier. It’s in the tenant’s interest to assist with the sale so that their life can carry on as normal, so they’ll likely be more amenable to viewings and more communicative.
Conclusion
Although selling your property with the intention of your tenants staying on can have its downsides, its positives can’t be denied. What you lose in a potential buying pool, you gain in financial security, stronger communication, and assurance that your current tenant will have a place to live.
