How to do right by tenants when selling?

I've also posted on here previously about wanting to sell a property with tenants in situ, but most suggestions I got were to just advertise through normal estate agents. I had a normal estate agent view the property but due to the tenant's lifestyle (mental health issues) the agent said I needed to evict the tenant and sell with vacant possession (after spending money on doing it up). Tenant has been with me for 8 years and has no rent arrears, so I did not want to evict my tenant. Like yourself, I wanted to do right by my tenant and avoid making him homeless.

Why do you need them out? Many other landlords would be willing to buy with an incumbent tenant. I have sold 3 student houses in the couple of years all to landlords all pleased to buy with tenants - saves them finding any.
I would discuss with tenants, see if you can get as buyer willing to take on the tenants and all the time you are doing this you still benefit from the rent. If in the end you can't sell tenanted, then come to an arrangement with tenants to sell with vacant possession.
As with the vast majority of landlord/tenant issues, there is nothing like a good relationship with a tenant to make almost anything possible.

Reply to the comment left by Annie Landlord at 28/09/2017 - 14:01
I would also be grateful for the name of the tenanted specialist Linda used as well.
Many thanks

Reply to the comment left by terry sullivan at 29/09/2017 - 09:54
Not sure what you mean Terry? Tenants have been on periodic for several years

Reply to the comment left by Bill O'Dell at 29/09/2017 - 10:33
Thanks Robert and Bill. I have an excellent relationship with my tenants and I'm sure they will be amenable to viewings etc if they think it will either mean they don't have to move, or they will receive a golden handshake from me if they do have to move. But I'm still back to the original question of where to find landlords who would like this great investment with great tenants! (Yield is 8%) Are high street estate agents the only way? Did wonder about auction? I have attended a few but never bought or sold through that route.

I agree with the comment about selling to a landlord. I bought a property with a tenant already in place who had been there for 5 years before I purchased it. Our relationship has been great, you just need to do some research on the tenant to ensure one isn't buying a problem tenant. I found mine on Rightmove and probably paid full market value but I had no voids, no remedial work needed and no fees to any agent. The tenant agreed to an increase in rent but just below market rates so it was a win win all round.

Not sure why you would want to offer your tenants a golden handshake ? They have been renting from a fantastic landlord for the many years who has now decided to sell up. That's life and they have had a lovely 8 years in your property isn't that enough ? I guess you're for some strange reason feeling a bit guilty about selling up, as they have been good tenants. My advice don't be.
Simply advertise the property in the normal way and don't even mention it is tenanted at the moment. Any residential buyer looking to buy for themselves will naturally assume the tenants will be given notice and they will be buying with vacant possession. A landlord buyer equally will assume your tenants will leave, or tell the landlord there's the option of your tenants remaining in situ if the new landlord wants.
I wouldn't recommend a high street agent they're too expensive. Try an online agent such as EMoov who charge £795. You'll have to do the viewings yourself but that's a good thing, you can explain the circumstances to a potential buyer at the time of viewing, without an estate agent messing it up. Good luck.

The problem with what you suggest Dylan is that tenants have a "right of quiet enjoyment" and unless expressly stated in their tenancy agreement, they are not obliged to allow viewings. They may be shift workers or have a young baby, so they are not being unreasonable, or they may just not want disruption to their home, as it their right.
A tenanted property often does not show well either, depending on how your tenants live and they may not make it clean and tidy for viewings.
Any owner occupier buyer will likely be put off by tenants and worried that they may not leave on completion, meaning an unknown length of time to go to court and get bailiffs in etc. if the worse happens.

Potential buyers will need a lot of reassurance that this will not be the case.
So, unfortunately, it is not as straightforward as you would make out ....

Reply to the comment left by linda green at 28/09/2017 - 13:26
Hi Linda
Would you be able to share the details of your specialist buyer for tenanted properties? Due to S24 am having to sell 3 HMOs in SE London.

Reply to the comment left by Dylan Morris at 29/09/2017 - 12:21
Yes Dylan, it is a bit of guilt about selling up I suppose. But you are right. We have had a mutually respectful relationship between a good landlord and a good tenant. But sometimes good things come to an end. My hope is that another decent landlord keeps them on. I have never used the online selling portals but that may be a good route. Thanks for the info.