Tips on How to Rent Out A House That is Taking Too Long to Sell
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 favour. Before you jump into hiring an agent to list your property for rent, here are some factors you have to consider:
Finding short-term tenants or guests
If you need a tenant or a guest for a short-term lease, it would be wise to list your property to marketplaces such as Malta Holiday Lets. This marketplace has prospective guests who are specifically looking for a holiday or a short-term let. Agents at Malta Holiday Lets can even help you manage your property, from the simplest tasks such as processing refunds to the most complex ones like MTA licensing.
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.
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 Malta Holiday Lets. Not only will you minimise 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 Frank Salt Real Estate Letting, as they have more than 50 years of experience in dealing with landlords and tenants, both in the long- and short-term rental markets.