Updating post from Reddit.
My current tenant has been in the house for almost 3 years (after initially indicating would only rent for 6 months)
2 years ago I put the house up for sale and a couple of months later the tenant came to me in financial difficulty and I offered to cut the rent by 20%. My thinking at the time: good tenant, house will sell soon ie wouldn't get another tenant in and rather house occupied.
A year of little buyer interest, I took house off the market.
Towards the end of last year the rental payments started coming late, nothing significant, a few days, but always paid. Then beginning of this year became very late, 2-3 weeks over due, paid in small increments and slight underpayment.
I decided to try and sell again as I have no interest in being a landlord. Property only listed a few weeks ago but now tenant has said that they are very sorry but in a difficult financial situation, can't afford rent anymore so will move out ASAP.
I'm in a dilemma so would appreciate thoughts/advice:
treat it as a blessing in disguise, house more attractive to potential buyers, no eviction concerns. But I'm 4 hours away, ie not readily available for maintenance, risk of squatters etc. Could be empty a long time. I'd have to take on council tax and utility bills
find a mutual ground, perhaps 50% of rent, keeps the goodwill, have someone caring for the house, paying for the bills and keeping it clean and tidy for viewings. But keeps an element that may put potential buyers off re tenant in situ and could cost me with either limited interest or significant discount
I allow the tenant to leave, engage with the estate agent for a more aggressive marketing campaign and if no action in 3 months then cancel the listing and put it up for rent again (I'd like to avoid but it's an option)
Let them go. If you’re serious about selling the last thing you want is a tenant with financial issues occupying the property. If they later decide to try for social housing the council will tell them to hang in to the bitter end before helping them, and you are the one who would lose our most in that situation.
Thank you for responding. I genuinely believe my tenant has integrity and the risk of overstaying is less likely, but I hear your point, it's a significant risk factor
Your property didn’t sell because it was tenanted. The tenant leaves. Happy days.
Definitely that has played on my mind. Although of the viewings, we never had it from the feedback, I suspect maybe it's something buyers are less vocal about, but think it.
Amazing situation. Your late paying tenant is leaving of their own accord. I would suggest taking the number the estate gives and advertising it for 10k less to try and secure an earlier sale. My most recent experience with estate agents is that they look to compete for your business by being overly optimistic.
I have definitely been proactive on the EA optimism front and priced it myself based on where similar properties are SELLING, not LISTING. Funnily enough was about 15% below what the EA recommended I list at
I worked as an estate agent for just over a year, in that time we never sold a single property with a tenant in situ.
Get them out, clean up the property and then put it freshly on the market with new photos.
What I feel makes this a particular difficult scenario is that it's a higher value property (above 1m) with an appropriate rent which forms my primary source of income (I'm retired). Although to buyers it maybe more desirable vacant, its a balancing act, I live 4 hours away so can't visit regularly to maintain, repair leaks, mow the lawn etc etc ie there is a risk it starts to look worse vacant than a potential risk of tenant issue (and it would always be sold with vacant possession). With no rental income, I couldn't afford to pay someone to maintain it as well as take on the council tax and utility bills etc. It would need to sell very quickly but for that to happen I would have to price it well below market value as that end of the market where it is based is far from "hot".
I wish my tenant would leave as I too am trying to sell the property but they will stay until evicted by a baliff.
Very sorry to hear that. Those situations are bad for all involved but I imagine it's putting a lot of stress on you as it would me