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20180806 Better to sell when tenanted or vacant?

20180806 (Mon)

Is it better to sell my house when it is rent? Or when it is vacant?

Many investors would have this question in mind. A house tenanted has a better value or one which is not?

There are two levels of decision making here. One at the level of law, and another at the level of perception.

From the perspective of law, a tenanted house would have two legal issues. First the tenancy agreement with the existing tenant, and the sale and purchase agreement with the buyer.

From the perception of selling a tenanted house, buyer would think that the tenant is a lousy tenant, and thus you are selling the house to get rid of this recalcitrant tenant (who does not pay rent, for eg).

From the legal point of view. A contract above another contract is possible, if by the nature of the contract, the parties involved consent to the 2nd contract. Because in law it cannot harm the third party.

You can sell your property together with the tenancy agreement if the purchaser agrees to the terms.

The inconvenience of selling a tenanted house is the viewing requires the consent of the tenant. Therefore, it would be harder to arrange for viewing if tenant is not cooperative. Another issue is tenant being tenant, they prefer not to move out hence, if they talk directly to the prospect buyer they will comment on the negative aspects of the house.

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