Decided to sell - time to tell tenant

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Pepper2

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Would appreciate advise on how to handle the following.
Have a investment property rented for almost 2 years to the same tenant. Lease is up in the next few weeks. Have decided to sell the property over the next 3-6 months. What steps should I take?
 
You need to give the tenant a valid notice of termination and observe the notice period (42 days).

[broken link removed]
 
Fixed term tenancies are lawfully terminated on expiry of the relevant fixed term - there is no requirement in such circumstances to issue a notice of termination.

Having said that, you probably should give your tenant a heads up at this stage that you do not intend to enter into a further letting agreement (or that you are only prepared to enter into a 3/6 month letting agreement) on expiry of the current lease.
 
I'm not sure you're correct, the tenant has Part 4 rights which were acquired during the fixed term.

FIXED TERM TENANCIES AND PART 4

The existence of a fixed term tenancy does not preclude the operation of Part 4. Part 4 runs with a fixed term tenancy, so that the continuous occupation by a tenant under a fixed term tenancy for a period of 6 months, means the tenant shall, as in the normal course, become entitled to the protections of a Part 4 tenancy. In cases of fixed term tenancies however, the rights under Part 4 only apply to the extent that they benefit the tenant over and above the rights afforded to him or her under the terms of the fixed term tenancy.
Click to expand...

From - [broken link removed]
 
Well, there was no mention in the original post of the tenant having issued the requisite notice of their intention to stay in the property on the expiry of the fixed term period pursuant to rights accrued under Part 4.

If the tenant does intend to claim Part 4 rights at the end of the fixed term, then they are entitled to do so but must compensate the OP for any loss due to their failure to issue the requisite notice and, in any event, the OP can then terminate the Part 4 tenancy pursuant to Section 34 of the Act.

The point stands that a fixed term letting agreement lawfully terminates on expiry of the fixed term - without any notice of termination having issued.
 
Thank you for the replies. Tenant has not said if they wish to stay on or not. Need to meet with them. I will let them know my intention to sell and offer a short term lease if they wish to stay while property is being sold is probably my best option?
 
Hi Pepper

If I was in your shoes, I would simply let your tenant know, as soon as possible, that you do not intend to enter into a further letting agreement in respect of the property on the expiry of the current agreement because you intend to sell it within the next 3 months.

I would then ask when would be a suitable time to arrange for a final inspection of the property and emphasise that you are anxious to make the necessary arrangements to return their deposit, ensure that you have a forwarding address for post, etc. You might also suggest that you would be happy to provide them with a good reference as you have always found them to be a model tenant (assuming that is the case, obviously!).

If your tenant does exert their Part 4 entitlements (which is their right), then you will have to be careful to observe the formalities of issuing a valid notice of termination, with the appropriate proofs as per the recent legislative amendments (the Residential Tenancies Board website has a good summary of the new requirements).

Either way, you should get to the same position - vacant possession - but if your tenant does exert their Part 4 rights, it might take a few weeks longer.

Personally, I wouldn't dream of trying to sell a property without first securing vacant possession - it's a huge turnoff for potential buyers.

Hope that helps.
 
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