Keeping Tennants Happy During Sale

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kellyr4

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I am about to put my property that I rent to two couples on the market to sell. Has anybody got any advice on how I should tell them that its going up for sale without causing them to panic and move out too soon?

With the slowing down of the property market it could take months for the property to sell so it would be great to keep my tennants for as close to the sale as possible to cover the mortgage repayments.

Anybody else who has been in this situation? How does it work when it comes to viewings? Do I just tell them to disappear for an hour or two and to make sure the place is tidy?

Also if they did move out on me would the bank allow for a mortgage break for a few months knowing that the property is for sale? Mortgage is currently Interest Only with AIB.

Tricky situation but your views and opinions are welcome
 
I'd suggest you look into your tenants rights first www.prtb.ie before you go wondering what the bank will do for you.

kellyr4 said:
How does it work when it comes to viewings? Do I just tell them to disappear for an hour or two and to make sure the place is tidy?
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You can't TELL them anything. Whilst they have a lease it's their place. You can ASK them if they'll allow viewings of THEIR property but they would be completely within their rights to say no.
 
kellyr4 said:
With the slowing down of the property market it could take months for the property to sell so it would be great to keep my tennants for as close to the sale as possible to cover the mortgage repayments.
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Make the sale conditional on having to give the tenants their appropriate notice, if that was possible. You could try selling it to an investor with tenants in situ. You're really trying to have your cake and eat it though.

How does it work when it comes to viewings? Do I just tell them to disappear for an hour or two and to make sure the place is tidy?
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As Howitzer said, this is their house and you can enter for viewings only if the tenants give you permission. They have no obligation to "make sure they place is tidy" for your viewings. If you want freedom to do what you want and show it in whatever condition you want, give them their notice and show it when vacant.
 
Check the lease and make sure whatever you do does not leave you legally exposed.

Then talk to the tenants and tell them you will give them at least 1 or 2 months notice if you agree the sale. In the interim you could reduce the rent if they are willing to have the house tidy for viewing. They might have the same view on the property market and be delighted to save a few quid for a few months.
 
kellyr4 said:
Anybody else who has been in this situation? How does it work when it comes to viewings? Do I just tell them to disappear for an hour or two and to make sure the place is tidy?
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Since you asked for opinions I'll give you one from someone who is a tenant with a landlord wanting to sell.


It wouldn't really be nice to tell them to "disappear for an hour or two and to make sure the place is tidy". Employ the services of an estate agent to handle the viewings with the tenant. Huge amounts of tact may well be required.

I have to agree though, you do seem to be wanting to have your cake and eat it. If you want to keep your tenants until you sell, you need to get them onside and treat them and their home with a bit of respect. Remember too, some people wouldn't be happy to offer on a house with tenants, what guarantees do they have that the tenants will leave?

Don't be surprised though if they go and find somewhere else to rent, the disruption of viewings wont sit well with someone who knows they're going to be required to leave anyway.

Be sure and stick to the terms of your contract as the prtb tend to come down fairly hard when it comes to broken contracts/deposit retention.
 
kellyr4 said:
With the slowing down of the property market it could take months for the property to sell so it would be great to keep my tennants for as close to the sale as possible to cover the mortgage repayments.
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Are you thinking of putting the asking price at less than comparable apartments that have been recently for sale? If so you are probably right that it will take months to shift which will mean that your tenants have you over a barrel when it comes to accommadating viewings. You could maybe offer them reduced rent during the time its up for sale but I would imagine they would want to extract some sort of benefit for doing so. Alternatively you could go for a quick sale and undercut your rival sellers by 5-10% and hope this does the trick.
 
Guys I think you took me up wrong. I must have come across as a hungry fatcat landlord but I assure you I am not. I have a great relationship with my tennants, but really did not know how to go about approaching them regarding the sale.

I have told them that the property is for sale and that I will keep them informed every step of the way. They are happy to stay for now and are ok about viewings. I gave them the opportunity to make an offer on the property but as they are foreign nationals they are not interested in buying.

Maybe I am wanting to have my cake and eat it buy hoping to retain them for as long as possible until I make the sale.. Is that a sin in the rip off Ireland we are living in? I am 25 years old with a partner and 1 year old child to support. The only reason I am selling the property is so that I can provide a better home for them. I am currently living in my partner's parent's home. A trainee accountants salary does not go a long way in this regard. So with increasing interest rates, living expenses etc. its my tennants who are keeping me above the bread line.

I have always treated them with respect, and I do accept that it is their home as long as they pay their rent. However, as with most young families the time comes to trade up and I am left with no choice but to sell.

Personally I will be glad to just have a home for me and my family and put the "landlord role" behind me. I think it takes a certain typre of person to be one and I aint that type.

Whoever said that renting out property was easy money was way off the truth!!
 
To the OP:

Speaking as someone who's been a sitting tenant in a (subdivided) house the landlord was selling, I'd advise great caution on your approach. The tenants would be well within their rights to refuse to allow access for viewings if they so chose. If you have a good relationship with them, that's a good starting point, but I'd suggest that you meet with them, discuss how viewings might be scheduled, and get clear - written - agreements on notice periods if and when you achieve a sale. It's unlikely a buyer will want sitting tenants and contracts will probably require vacant possession.

If you have a lot of viewings, and require frequent access, you should strongly consider allowing a rent rebate to your tenants to compensate for the inconvenience they will experience. Goodwill can evaporate remarkably quickly if you're told to be out of the house twice or three times in a week...

And do ensure you're tax compliant, or you'll find that salary eaten up even faster with interest and penalties.
 
kellyr4 your attitude astounds me. You genuinely seem to have no appreciation that you are indeed one of those fat cat landlords but the people you are ripping off are US the tax payers. Have you addressed your very large tax liability? Do you even recognise that you have one?

You're a trainee accountant but seem to genuinely have no appreciation for your tax situation. How do you think a tax prosecution would affect you in your professional capacity?

I'm not trying to get on your back but you appear to be sleepwalking into a shockingly bad situation.
 
Howitzer said:
kellyr4 your attitude astounds me. You genuinely seem to have no appreciation that you are indeed one of those fat cat landlords but the people you are ripping off are US the tax payers. Have you addressed your very large tax liability? Do you even recognise that you have one?

You're a trainee accountant but seem to genuinely have no appreciation for your tax situation. How do you think a tax prosecution would affect you in your professional capacity?

I'm not trying to get on your back but you appear to be sleepwalking into a shockingly bad situation.
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The OP would be well advised to regularise his tax matters as a matter of urgency as I can't see the revenue not throwing the book at him when it comes to determining the outstanding liability
 
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