Can I sell a tenanted property in the UK?
Posted by Jordan Evans
Many landlords ask whether it is possible to sell a property that already has tenants living in it. It is an entirely valid question, especially if you are planning your next move or looking to release equity. This guide walks you through everything you need to know, along with how to manage the process smoothly from start to finish.
Row of houses
Can a landlord sell a house with tenants?
Yes, a landlord can sell a house with tenants, although the process works a little differently to a standard sale. When you sell a property while the tenants remain in place, it is known as selling with tenants in situ. In this situation, the occupants stay in the home and the buyers simply become the new landlords.
Selling with vacant possession, on the other hand, means the property must be completely empty, with all belongings removed by completion.
Pros and cons of selling a house with sitting tenants
If you own a buy to let with tenants and are thinking about selling, it is worth weighing up the advantages and disadvantages of selling with sitting tenants compared with selling an empty property.
Pros
Appealing to landlords
Many buyers assume a tenanted property is harder to sell, but landlords often find it extremely attractive. With tenants already in place, the buyer avoids the cost and time of finding new occupants, which can save weeks or even months of marketing.
No void periods
Selling a property can take several months. If the home is empty during this period, the lost rental income can be painful. A tenanted property continues to generate income throughout the sale, keeping your cash flow steady.
Lower risk of break-ins
Empty properties can be more vulnerable to break-ins. A home with tenants offers natural protection and provides peace of mind that the property is being looked after.
No need to redecorate
If you plan to sell with vacant possession, you may need to carry out repairs or redecoration to get the home ready for viewings. Selling with tenants in situ often removes this cost because the property is still in everyday use.
Cons
Potentially lower sale price
A tenanted property usually appeals only to landlords. This reduces your pool of potential buyers, which can sometimes affect the sale price. Home movers wanting to live in the property will not consider it. Here are our 10 quick ways to add value to your house before selling.
Challenges with viewing
Flexible tenants make the process much easier. However, if your tenants are reluctant to allow viewings, it can slow the sale and potentially affect the value. Cooperation is key.
More paperwork
Selling a tenanted property comes with additional administration and compliance checks. At Comfort Estates, our team has over thirty years of combined experience in the Nottingham property market. We regularly handle sales of rented homes and can support you through the entire process.
Essential documents for landlords selling a tenanted property
When selling with tenants in situ, you will need a full set of documents on top of the standard paperwork required for any house sale. These include:
- The signed tenancy agreement
- Proof of your tenants right to rent
- Rental history, including payments, repairs and any complaints
- The inventory report
- Gas and electrical safety certificates (EICR)
- Energy performance certificate (EPC)
- Deposit protection details
- A condition report plus notes on any repairs
Nottingham Estate Agent
Need help selling a tenanted property?
If you would like guidance or support at any stage, we are here to help. Our team has more than thirty years of combined experience in the Nottingham property market and we would be delighted to assist you with selling your tenanted property.
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