When opportunity knocks, it’s not always clear whether to say yes or no, particularly when it’s unexpected or means changing your plans.
Selling to your tenant could be one of those times, and even if you’re planning to be a landlord for life, it doesn’t mean you’ll never change your management style or the properties you own.
But is selling to your tenant the best decision for you, and how do you know you’ve made a great deal? There’s plenty to consider before shaking hands, including:
You’ll find tips and tricks for all of that in our blog this week so you can decide whether selling to your tenant is the right choice for you - not just for now, but for your long-term financial freedom.
Selling to your tenant can be an opportunity that opens new and unexpected doors, but it’s still worth taking the time to decide if you really do want to sell.
If the answer to that is yes, the next step is looking at which of the following costs you’ll need to pay to see if selling is worth your while.
After you’ve added up all the costs that apply to you, the question to ask is whether selling to your tenant now will make you better off than keeping your investment and income for the long term.
Selling to your tenant can help you avoid any repairs, decorating and contractors you might need when putting your property on the market, and remove the uncertainty over when you’ll find a buyer.
At the same time, it’s worth considering the following before jumping in:
Ultimately, you need to be as sure as possible that the convenience and certainty of selling to your tenant is as good as it seems and doesn’t have any hidden surprises or misunderstandings.
Your tenant’s idea of a fair price for buying your property could be different to yours, so it makes sense to get some expert and neutral guidance on a reasonable figure.
Depending on how your property was rented out, you have a number of options.
However you get your property valued, negotiating a price from an informed position is the best way to avoid anyone getting cold feet later on.
Agreeing a price is only the start of a sale, and there’s a lot to do to get your tenant over the line to exchanging contracts, so it’s a good idea to set aside time in your week for things like:
Given the need to stay on the case, you might prefer an estate agent to handle the sales progression for you at a fee that reflects a buyer already being in place.
As well as liaising with both solicitors, agents can act as a buffer and mediator in case of any hiccups or further negotiations, and keep you informed of progress while you get on with life.
After you’ve exchanged contracts, the final stage of selling to your tenant involves a few formalities to bring the tenancy to an end with a clean and tidy finish.
As for the tenancy agreement, this will naturally terminate when the sale completes, so there’s no need for either of you to give notice. Time to hand over the keys!
If you want to be sure you’re getting the best deal, or you’d like some expert support in getting the sale through, we’re here to help.
Call us on 01722 580059 or message us at info@piccoloproperty.co.uk for a chat with one of our team about the right way forward for you.
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