Selling an investment property with tenant in occupation

Libra

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I have two investment properties which I'd like to off load. Tenants have just moved out of one and I'm thinking of putting that on the market. Would you advise getting some tenants (as I really can't afford to pay the mortgage without rent coming in) and put it on the market or leave it empty and put it on the market. I've a friend who's an estate agent and has advised it's not really the done thing to be showing a house while there are tenants in occupancy but like I said, I can't really do without the rent for a number of months. It's a two bed apartment in a desirable part of Dublin.
 
+1

If you have tenants in situ, you / the agent will have to seek their permission to show the apartment on each occasion. They can refuse permission which will make it very difficult to sell.

It's also impossible to 'stage' an apartment for sale with the tenant's belongings in place - some buyers have difficulty seeing past clutter, untidiness and dirt.

Leave it empty, present it in the best possible way with a really good clean, paint and repair and tell the agent you need to offload it quickly.

Good luck with the sale.
 
The answer to this question is that it depends..

If the potential buyer is an Investor he/she may be very happy that it is already let and generating income.

At recent property auctions I have noticed that the best prices went to properties that were already let and producing income however most of these were, it must be said, commercial properties.

Anyhow,Its an apartment that you are selling not a country estate and for that reason I think that many potential buyers will be able to see past the clutter. If you cant afford to vacate the apartment for sale. I would come to an agreement with the tenants on viewings and proceed with the sale
with them in situ.
 
Is it not the case that at least some mortgage providers won't provide a non-investor mortgage where there is a tenant in place? So you could be restricting your pool of potential buyers to cash buyers or investors.
 
Apart from the arguments already put forward for leaving it vacant, if I was buying, I would not consider an apartment occupied by tenants, fearing they might refuse to move when the time came, and I would be left in limbo while the owner went through the lengthy procedures required to get them out.

Of course they would have to move eventually (Whenever that might be), but why bother with this apartment when there are plenty of vacant two bed apartments available, even in desirable parts of Dublin, more than likely even in the same complex.
 
Realistically there are very few residential investors in the market. You are likely to be marketing the property to an owner/occupier. Tenants in the property would raise issues for potential purchasers (as per the above comments). Location is another factor. Is the apt in Dublin or in a rising market location? If so, then the existence of tenants may not be a major issue. If you have positive equity in the property you should approach your lender to seek an int only repayment schedule in return for placing the property on the market. In the event of a refusal, you may need to consider stopping the loan repayments and paying int only if you can't afford the full P&I repayments without rental income. Advise the lender why you are doing this and send them evidence that the property is on the market.
 
Have you thought about letting it short term, there are often people who only need accommodation for a couple of months, or advertising it on airbnb so it's generating some income for you but gives you more flexibility.
 
I'm in the market as a potential purchaser. I have already walked away from one good property because there were tenants in situ.

Were I looking for a BTL, I would have some reservations taking on tenants who were brought in by the vendor: for all I know, they might be troublesome. It's an extra risk that many purchasers would not want to take on.
 
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