Selling an HMO

[RWD3M]

Hi all,

No, I'm not trying to sell it here, but I know there are a few landlords here so I thought I'd ask, has anyone any experience of selling one?

We're now looking to sell our second (of only two) HMO (fully licensed) and when we sold the first it proved to be a pretty painfull experience (idiot buyers, slow solicitors etc). We elected to use a residential estate agent to market the property and I'm not convinced this was the best decision. But, what alternatives are there?

A quick Google search brings up a few places but of course they all promise the earth and will likely deliver the same painful experience.

I'd be interested to hear of any of your suggestions/recommendations based on experience.

Thanks,

NB When I use the term we, I really mean Mrs RWD!

 

[gaz1]

most im aware of was done either by selling them as hmo or at an action

whilst action can be a better way to sell said property

ive also been a tenant as well whilst the property was being sold whilst you might not want to interfere you could ask them

whilst my landlord put the property under a 5 year rent clause in another words the new owners had to pay me to get me out which i was very grateful to have after the sale of the property

but the crevert was the rent had to be paid if i faltered on the rent i lost the 5 year protection

 

[Dozzer]

Auction, you may not get the best price, but most of the potential buyers know the risks that come with HMO and the bids are legally binding.
How long are the tenancy terms? and with the new renters rights coming into force, HMO will have limited appeal.
Friend has quite large portfolio of rentals, and just had the rigmarole of getting his landlords licence from Southend Council!!

 

[RWD3M]

Auction, you may not get the best price, but most of the potential buyers know the risks that come with HMO and the bids are legally binding.
How long are the tenancy terms? and with the new renters rights coming into force, HMO will have limited appeal.
Friend has quite large portfolio of rentals, and just had the rigmarole of getting his landlords licence from Southend Council!!

Tenancies are all 10 months (all students at the local Medical School) currently being renewed, but all will expire July 26 when the tenants graduate (fell into place quite nicely).

We've had this one about 20 years and Mrs RWD has now decided enough is enough!

 

[RWD3M]

most im aware of was done either by selling them as hmo or at an action

whilst action can be a better way to sell said property

ive also been a tenant as well whilst the property was being sold whilst you might not want to interfere you could ask them

whilst my landlord put the property under a 5 year rent clause in another words the new owners had to pay me to get me out which i was very grateful to have after the sale of the property

but the crevert was the rent had to be paid if i faltered on the rent i lost the 5 year protection

That's the intention, selling as an HMO. The last one sold as a residential and it was a right royal PITA!

 

[dobbslc]

landlords licence

???
I've never heard of that.

 

[hotponyshoes]

Selling one will always be a hassle as you'll get private buyers who think they will convert it back to a single house then it will fall through due to the doom & gloom they get from the solicitors and the mortgage companies.

Any estate agent can do the job but maybe just instruct them to list it under 'commercial property' on rightmove rather than residential to save you some messing about..

 

[RWD3M]

???
I've never heard of that.

Oh you'd be amazed at the crazy schemes some councils will come up with to make money!

 

[dobbslc]

Ahh it's not a national thing then

 

[RWD3M]

Ahh it's not a national thing then

It sort of is, but....

There are national guidelines, but local councils seem to be able to do as they please. I could give examples but TBH, it'll only get my blood pressure up and result in

 

[Nomad]

Hi, I've no personal experience with HMOs but have had a little to do with property...

One of the property forums has a dedicated HMO section, you might want to see if they have any info.

HMO & Multi-Lets

www.propertytribes.com

 

[Mark 5]

Hi all,

No, I'm not trying to sell it here, but I know there are a few landlords here so I thought I'd ask, has anyone any experience of selling one?

We're now looking to sell our second (of only two) HMO (fully licensed) and when we sold the first it proved to be a pretty painfull experience (idiot buyers, slow solicitors etc). We elected to use a residential estate agent to market the property and I'm not convinced this was the best decision. But, what alternatives are there?

A quick Google search brings up a few places but of course they all promise the earth and will likely deliver the same painful experience.

I'd be interested to hear of any of your suggestions/recommendations based on experience.

Thanks,

NB When I use the term we, I really mean Mrs RWD!

Based on experience, IMO a l;arge Property Auction would be your best option.

If you go down that avenue have all paperwork to hand, from deeds, any mortgage/buy to rent details, gas safety/fensa/electrical certificates, any works done that have long guarantees to name a few and the name of your conveyancer/solicitor.

While such details are not required to sell a HMO at auction, you will need to complete questionnaires after sale, such questions will be asked, be ready for them, have the paperwork to hand.

Use an online conveyancer, however find someone/firm you can visit in person and use to dealing with short auction sale/completion dates and impress upon them you are looking for that legal expertise and swiftness, get your requirements and their understanding of them in their written introductory to you, they need to have dealt with HMOs in auction.

You will know this but make sure once you instruct, you in person, not in a phone call, not an email, in person, you get their Client Account paying in details, ( don't lose them ), and don't deviate from them, any such change--question, in person.

 

[RWD3M]

Hi, I've no personal experience with HMOs but have had a little to do with property...

One of the property forums has a dedicated HMO section, you might want to see if they have any info.

HMO & Multi-Lets

www.propertytribes.com

Thanks @Nomad , I'll take a look.

 

[gaz1]

since they are leaving in july sell as ex rental then or adapt back to a normal property

Oh you'd be amazed at the crazy schemes some councils will come up with to make money!

to a degree i agree with it

there is a but though alot of the dodgy ones then go below the radar very quickly there plenty of renters out there with really bad property ive seen many and many are unfit to rent

seen many as built many flatlets and bedsits over the years even the legal ones have been in an unfit state to rent and yet the system has been paying them it makes a right mockery of the rent to is the flat fit enough to live in

also want workers only

 

[Dozzer]

???
I've never heard of that.

Landlords Licence https://www.gov.uk/government/publi...e-rented-sector-a-guide-for-local-authorities
Its a bit of an odd one, there are national guidelines, that each council can interpret to suit their own needs.
They are supposed to stop the "Slum landlord" problem, in areas where housing is in short supply.
But they fall short as if you put all your housing stock into a company, its then the company that applies for the licence and goes through all the checks (they do a DBS check) not the individual.
just to add salt in the wound, housing association and council stock is exempt from the rules, private renters have to meet, you couldn't make it up.
With all the new renters rights, an acquaintance who runs and estate agents that prominently deals with rentals, about a 3rd are considering liquidating their stock. its dissuading the small mom & pop renters out of the rental market, allowing the likes of Blackrock to snap up at a discount.

 

[RWD3M]

^^^^This!

 

[dobbslc]

We're thinking of selling one flat to help pay for some house renovations etc, also the other reasons are,
1, all the new rules to shaft the decent private landlord.
2, Clarion Housing (the lease holder) a bigger shower of ****e you won't find, corrupt and incompetent.

 

[RWD3M]

there is a but though alot of the dodgy ones then go below the radar very quickly there plenty of renters out there with really bad property ive seen many and many are unfit to rent

seen many as built many flatlets and bedsits over the years even the legal ones have been in an unfit state to rent and yet the system has been paying them it makes a right mockery of the rent to is the flat fit enough to live in

That's exactly it. Mrs RWD has been positively anal fastidious when it came to keeping up with all the various changing requirements, so much so that it now barely covers our costs. The landlords that prefer not to bother simply don't tell the council!

Again, the responsible ones are easy prey.

 

[RWD3M]

Anyway, I need to stop ranting! BP won't take it.

So getting back to my question, thanks for the replies, some food for thought. I may well come back to this as anything progresses.

 

[Dozzer]

^^^^This!

Sorry if i raised your blood pressure.