Tips on How to Rent Out A House That is Taking Too Long to Sell

June 14, 2021

So you listed a property for sale, expecting it to be sold in a few months. But for some reason, the market isn’t on your side and it’s taking too long for the house to be sold. What’s worse is that it is incurring monthly costs rather than generating monthly income. 

In such a case – it might be best to rent your property until the market rebounds and the odds are finally in your favor. Before you jump into hiring an agent to list your property for rent, here are some factors you have to consider:

Adjusting the price

Buyers are not keen on properties that are tenant occupied unless they are in the business of renting out properties themselves. In this case, they may just be too happy that they will “inherit” a tenant from the start of owning the property. A drawback is that the tenant’s agreement with you as the seller will be binding until it expires, whether the property has a new owner or not. Always inform buyers of any legal agreements you have signed with a tenant, as not doing so can invoke a breach of sale and cost you dearly.

Scheduling viewings

With the property open to buyers’ inspections, you will be legally obliged to inform tenants at least 24 hours ahead of time that you or your agents want to bring someone around for property viewing. By law, you cannot insist on viewing times and/ or arrangements and will have to schedule it when it is convenient for the tenants. 

Setting your expectations

An empty property will have a larger pool of willing buyers than a tenanted one. Also expect buyers to use the fact of a tenanted property as a bargaining tool to secure a discount on the asking price. It’s only fair if they are facing taking on the risk, so fathom that in when you determine what you want for the property.

Listing the property

You can list your property for short-term lets with us. Not only will you minimize the risk of not generating any income as you wait for the property to be sold, you will also be able to adjust the costs per day for the rental. On the other hand, you are not guaranteed bookings day-after-day, plus you will have to see to it that the property is fully furnished and in tip-top shape 24 hours a day. On the positive side, this will mean the property is always staged and looking its best, a great plus for buyers.

Many people have successfully let out their properties while they are busy selling it without incidents or problems and made some good money doing it. Be clear about the benefits and the risks and use a savvy notary or legal expert to draw up the rental agreements as they need to be water-tight. You can also speak to any of our letting experts at Mega Homes 4U, as they have more than 10 years of experience in dealing with landlords and tenants, 1both in the long- and short-term rental markets.