Sell investment property with tenant in-situ

[JohnGonne]

Is there provision to sell an investment property with tenant in-situ? I have reviewed the PRTB guidelines and can see no reference to this - I am aware with termination provisions i.e. give tenants x days notice depending on length of tenancy, that you will be taking possession to sell the property.

I am just wondering is it possible that if you have a happy long-term tenant, on a year-to-year lease, that you can sell the house with tenant in-situ as a condition of sale?

Anyone any experience / comments on this?

 

[Ravima]

you can and some landlords would be happy to buy such a property as there would (should) be no hassle in trying to find tenants. Be sure that you hand over the tenants deposit to the new owner though!

 

[landlord]

However many investors will be unhappy to purchase a property with a sitting tenant. My concerns would be:
I never met or checked references for the tenant my self.
Is the property being sold because the tenant hasnt been paying the rent for the last x months.
Has the tenant signed a contract that I would approve of etc.....
Make sure you give the option to any interested parties of vacant possesion or sale with sitting tenant and that way you will attract investors who may prefer one or the other.

 

[delgirl]

I am also in the process of selling a property which was let and wondered if I should try to sell with my tenant in place.

I chose not to and gave her notice - the main reason being that she's a single mother with 2 kids and the house is very untidy, with toys and 'stuff' everywhere. There's also a cot in the master bedroom which makes it look a lot smaller than it really is.

I think the clutter would definitely put potential buyers off. By terminating the tenancy, I can have the house looking great and appeal to both investors and regular buyers.

BTW, I gave her loads of notice and helped her find another place - just in case anyone thinks I'm heartless throwing a single mother with 2 kids onto the street!

 

[Calina]

However many investors will be unhappy to purchase a property with a sitting tenant. My concerns would be:
I never met or checked references for the tenant my self.
Is the property being sold because the tenant hasnt been paying the rent for the last x months.
Has the tenant signed a contract that I would approve of etc.....
Make sure you give the option to any interested parties of vacant possesion or sale with sitting tenant and that way you will attract investors who may prefer one or the other.

As a tenant, I would expect to sign a new contract with the new landlord. Secondly, as a tenant who's been through a couple of house sales, I have to say that you should make a decision one way or the other before hand. Otherwise you are effectively messing your tenant around and to be blunt about it, could find yourself tied in knots by the minimum notice period required for them.

Personally speaking I find house sales a major disruption if you're still living in the house while it's being sold. I'd prefer to get six weeks' notice before the for sale sign goes up, and then no party is being messed around.

As to the original poster's question: I believe this is quite common in other countries - I can't speak for here. I would venture to say that (in Dublin at least) the investment market is somewhat limited - from what people have said here and over on boards.ie's accommodation forum, it's not seen as a good investment right now. If you're looking to max out your income on the house sale, you'll probably have to widen your net beyond investors happy to take on a sitting tenant.