Sometimes property owners have what are known as sitting tenants living on their properties. If these property owners decide that they want to sell their property then things could become more complicated due to the presence of a sitting tenants. The property can still be sold but there are some things to take into account as the presence of a sitting tenant does have some bearing on the property’s sale.
A sitting tenant is defined as a person that lives on your property to whom you are renting the property. Usually in most situations, sitting tenants pay lower rents than do other tenants living in similar properties. There are many different reasons that these sitting tenants pay reduced rent charges. Many times the sitting tenant has a long term agreement which specifies the amount of the rent. In other situations, the sitting tenant can be a part owner of the property and therefore resides on it as a sitting tenant. Sometimes this occurs when the sitting tenant is a relation to the owner. Another reason for the reduced rent could be due to the fact that the tenant is going through financial hardship.
Sitting tenants can be one of two varieties. One is known as a protected tenant. Protected tenants have tenancy agreements that were made prior to 1989. Assured short hold tenants are another sort of sitting tenant. These tenants would have tenancy agreements made after 1989. Of these two kinds of sitting tenants, an assured short hold tenancy is typically better for a potential buyer.
In most situations, the presence of a sitting tenant will affect the value of a property. Most values decrease a bit with a sitting tenant. The reason for this stems from the reduced rent rate that the new buyer will receive from the sitting tenant. This rent will be lower than what they could rent the property for in other situations. Even though a sitting tenant might come with a property, it is not a hopeless situation. Many properties are bought and sold every day with sitting tenants. Some buyers like the fact there is a steady renter paying regular rent.
