Flat to let queries

[Pot Bellied Fool]

Hi All

I've browsed till my eyes bleed but I know that all of human knowledge resides here along with a few landlording bods so can I run things past you for pointers on what we've missed?

Long story short. Got married last year, both moved into my flat & put my now wife's flat up for sale. After 13 months of hassle (another story) the sale has finally fallen through. This leaves us in a bit of a hole and I'm certainly not happy at having the property sat there bringing no revenue in.

So.. it's our intention to let it out whilst keeping it on the market for sale (It's in a nice part of Liverpool & competitively priced but we accept that the sale market is moribund at the moment unless advertising at fire-sale prices - it's even listed on PH Classifieds so don't know why it hasn't sold yet ). It's a 1 bed flat in a 1970's development with off road parking, no through road & should attract fairly decent bods. It's ideal for either a first-timer, singleton, young-couple or pensioner so we think we should get some interest).

What we've done so far/doing.

• Decided on rent based on market rate from Rightmove. (But as the flat is still up for sale, should we be offering a discount in recognition that we might be ultimately serving notice?)
• Place is unfurnished except for cooker & fridge
• Electrician booked to do safety check. No gas in the flat.
• New carpet to be fitted to brighten it up a bit.
• Building Society & Lease Head permissions applied for. (Mortgage is approx 25%LTV)
• Deposit schemes investigated

My understanding is that there's no point in having a shorter than 6 Month AST as that's the shortest you can get possession in anyway so looking at renting it on a 6 month AST but how do you suggest we deal with the fact that...

a) Viewers may need access (presume we can give tenant 24 hrs notice)
b) If we get a buyer, is it possible to bring the tenancy to an earlier end? Or should we be serving notices as soon as someone moves in so that the 'clock is ticking' and then when we don't get a buyer, allow it to become a month by month periodic tenancy after the initial 6 months?

I'm loathe to use an agent due to the perceived high fees Vs action and certainly not a managed letting as we live close enough & have sufficient contacts to check/arrange any repairs. So we'll be advertising it ourselves for a month first & we'll consider an agent after that if no joy.

Anyone know any good online ASTs? Or should we bite the bullet & get solicitor involved?

Any suggestions? What glaring things have we missed?

Many thanks - Dunc the PBF

[sjg]

A tenant has the right to "peaceful enjoyment" or "quiet enjoyment" of the flat. You can write in terms about allowing viewings at any time during the tenancy, but they'd likely be deemed unfair and thus unenforceable. Personally I'd take issue with something like that in a contract before I signed it. Remember that tenants MUST give permission before allowing you or an agent on your behalf access to the property and if you don't have it, there's not a lot you can do.

Standard practice is for the wording of the AST to allow viewings in the last two months of the agreement if it's not being renewed (to allow the landlord to remarket it) but ultimately the tenant can simply refuse viewings until the end of their tenancy.

Diplomacy and arranging viewings at mutually convenient times can go a long way, but you have to accept that while someone is paying you to rent to the place it's their home, not yours, and things happen if THEY allow it. You can be upfront about the sale, offer discounted rent to allow viewings, etc but I doubt many people would be interested in settling for just 6 months and having evenings disturbed with strangers trampling around their home for much of that time.

IMO, either do all you can to get it sold ASAP (it being empty with no chain is a big selling point), or commit to it as a rental prospect for the next year or two and test the market for selling it then.

[Hoppy2008]

Pot Bellied Fool said:

Hi All

I've browsed till my eyes bleed but I know that all of human knowledge resides here along with a few landlording bods so can I run things past you for pointers on what we've missed?

Long story short. Got married last year, both moved into my flat & put my now wife's flat up for sale. After 13 months of hassle (another story) the sale has finally fallen through. This leaves us in a bit of a hole and I'm certainly not happy at having the property sat there bringing no revenue in.

So.. it's our intention to let it out whilst keeping it on the market for sale (It's in a nice part of Liverpool & competitively priced but we accept that the sale market is moribund at the moment unless advertising at fire-sale prices - it's even listed on PH Classifieds so don't know why it hasn't sold yet ). It's a 1 bed flat in a 1970's development with off road parking, no through road & should attract fairly decent bods. It's ideal for either a first-timer, singleton, young-couple or pensioner so we think we should get some interest).

What we've done so far/doing.

• Decided on rent based on market rate from Rightmove. (But as the flat is still up for sale, should we be offering a discount in recognition that we might be ultimately serving notice?)
• Place is unfurnished except for cooker & fridge
• Electrician booked to do safety check. No gas in the flat.
• New carpet to be fitted to brighten it up a bit.
• Building Society & Lease Head permissions applied for. (Mortgage is approx 25%LTV)
• Deposit schemes investigated

My understanding is that there's no point in having a shorter than 6 Month AST as that's the shortest you can get possession in anyway so looking at renting it on a 6 month AST but how do you suggest we deal with the fact that...

a) Viewers may need access (presume we can give tenant 24 hrs notice)
b) If we get a buyer, is it possible to bring the tenancy to an earlier end? Or should we be serving notices as soon as someone moves in so that the 'clock is ticking' and then when we don't get a buyer, allow it to become a month by month periodic tenancy after the initial 6 months?

I'm loathe to use an agent due to the perceived high fees Vs action and certainly not a managed letting as we live close enough & have sufficient contacts to check/arrange any repairs. So we'll be advertising it ourselves for a month first & we'll consider an agent after that if no joy.

Anyone know any good online ASTs? Or should we bite the bullet & get solicitor involved?

Any suggestions? What glaring things have we missed?

Many thanks - Dunc the PBF

Dunc, PM me, and ill send you the AST that I use for my properties.
Hoppy

[Pot Bellied Fool]

Thanks Hoppy, PM on the way.

Good points Sjg, diplomacy is the order of the day. We know we're trying to have our cake & eat it But hey, we gotta try!

Realistically, we don't expect a sale for the immediate short term, there's a lot of people sat on their hands at the moment just waiting to see what happens & I can't really blame 'em.

[NoelWatson]

A lot of my friends have done something similar - attempted to sell one of their flats when moving in together. Personally I don't understand the logic, unless you think you will be able to sell it for the same price in a year or two for the price you couldn't achieve today.