Can I sell my property during my rent-to-rent scheme?
Broadly speaking, the answer is ‘yes’ – after all it is still your property! That said, it’s important to remember that your rent-to-rent agreement is a legally binding contract – and of course not all such contracts are the same. So if you’re thinking of selling, your very first course of action really ought to be checking the fine details of your agreement. Although the actual stipulations vary a great deal, your contract will certainly contain clauses relating to termination by you, the property owner – and it’s essential that you understand them fully before you make any arrangements pertaining to the sale. In particular, take note of your obligations to your rent-to-rent provider – including the length of the notice period required.
In any event, it’s advisable to let your rent-to-rent operator know as early as possible of your intentions rather than wait until you’re contractually required to do so. It’s not just a business courtesy – it can be important to give them as much time as possible to make new arrangements for tenants who’ll have to find a new place to live!
Don’t forget, though, that your duties to your rent-to-rent operator aren’t your only legal and contractual obligations – and while your operator obviously has control over current tenancies, maintenance contracts and the like, they can’t be expected to be across every issue that could affect them relating to your property.
Next is the question whether your property will have tenants in place when it’s sold. Of course, this may depend on your agreement with your provider – and of course the details of the tenants’ agreement. It’s by no means always a drawback for the property to have tenants when it’s sold – the new owner may well be happy to have an instant revenue stream. On the other hand, if you’re selling to someone who plans to live there, they’ll much prefer vacant possession. Hence the importance of timing your sale to coincide with contract termination or renewal according to your circumstances. Hand in hand with this decision is the equally important one about marketing the property. For example, if your rent-to-rent agreement’s about to expire, it’s a great time to market your property to prospective homebuyers. If, on the other hand, your agreement is still running – and allows for the sale – you have the perfect opportunity to market the property as an attractive investment opportunity with a ready-made income stream!
Of course, as with any property transaction, it’s crucial that you get professional legal advice and work with accredited property professionals to ensure you avoid the many potential pitfalls, to ensure the sale goes smoothly and to deliver the financial outcome you’re after.
With that in mind, we’d suggest a talk with the Abel Living team about your plans for some clear, considered insights and advice.