Updating post from Reddit.
I have decided to sell my property which has been rented for the last 15 years - same tenant last 7 years. I have an agent who manages the property but I also have a direct relationship with the tenant which has been pretty good.
I have served a S21 notice to vacate at the end of the current term. The tenant seems willing to do so but are also finding it hard to secure a new rental in the area and have indicated that they may struggle to vacate by the due date. I know supply of rental properties is extremely short in my area so do not dispute what they are saying.
My question is how best to approach the issue if they cannot move out by the due date. As I will not be marketing the property for a few weeks I am unlikely to have sold by this date so, theoretically, I have no problem with them staying a bit longer. However I am concerned that, by allowing them to do so, I am effectively moving to a periodic lease and would legally have to serve 90 days notice from the start of the periodic lease should they start being difficult which could impact a potential sale.
I would prefer the have vacant possession at the end of the current AST but also want to be reasonable and helpful to the tenant if I can. I have no reason to think that the tenant would become difficult but have been reading so many horror stories on reddit of tenants refusing to move that I am concerned.
Is it possible to sign an agreement with them to protect me if I let them stay longer eg I say they can stay on a day to day basis but have to vacate in eg 2 weeks on demand if I find a buyer or would that be null and void as it goes against legislation on rentals? It seems crazy that legislation would stop me from being accomodating to my tenants but my first priority is to put myself in the best position to sell the property in a difficult market.
Any advice gratefully received.
There will be a shortage of rental properties at the low price and good condition that the tenant wants.
That is very different from there being an actual shortage of front of rental properties.
If you have managed the property correctly and the rent reflects market the tenant won’t see a much higher cost by moving.
The best thing to do is try and get them to give you notice .
Do the same search as the tenant and show them what the going rate is in that area. They will need to pay the going rate.
If they are paying a lower rate with you and you try to sell with tenant in situ you’ll get a lower sale price
I had this recently and I kept sending her properties and explaining that she had to compromise.
The notice period during a periodic tenancy is two months I think, not 90 days. However you have already served S21 so there’s no need to do it again when the fixed period ends. You can’t enforce any agreement that is not in legislation, so the only way you can get the tenant out if they are unwilling to go is by seeking an eviction order when the S21 notice period has elapsed. This could take several months at least. But selling with the tenant in situ is definitely an option - if they have a good payment record it should be fairly easy to find another landlord to buy, I have bought property with tenants in situ on several occasions in the past.
Yes, I think at the moment in England if the tenant stays after the AST contract term ends it becomes a rolling one month contract where the tenant has to give you, the LL one month notice to quit but you need to give the tenant 2 months notice. It is changing after the new law goes through.
Now is usually the start of the best time of year to market a property for sale and of course you may need to paint and decorate, sort out maintenance issues before marketing. To be very harsh if the tenant knows you are flexible some way in advance then the heat will be off them to find somewhere.
Can you not sell the apartment with tenant in situ?
Do you have the advert of the apartment you can share the link if someone from this sub is interested?
You do not want a day-to-day agreement, as at the end of the day, they could choose not to vacate. Then you have the buyer angry because they can't complete, as you can't provide vacant possession.
You have S21, give them time to find a property but if too long start court proceedings to gain possession.
Something to consider - would the tenant be willing to buy the property?
We had the same with one of our tenants and after a bit of negotiation they bought it from us, seems like a win win scenario - though not always possible.