Posted: Tuesday, October 25, 2022

Selling a Property with Tenants: All You Need to Know

If you are a landlord grappling with the prospect of selling a property with tenants, it is important to understand all the ins and outs of the process. Let’s look at everything you need to know if you are considering selling a home with tenants in situ.  

Can a home be sold if there are tenants? 

It is possible to sell a property with its current tenants to a new landlord or investor. The marketing of your property should let potential buyers know that the tenants will remain, and once the sale is completed, they will start making their rental payments to the new buyer. You can also choose to terminate the tenancy and sell the property vacant. The amount of notice you will need to give will depend on different factors such as the terms in your tenancy agreement. This is a route taken by many landlords who wish to sell the property to a new homeowner, rather than another landlord.  

Selling a home with ‘tenants in situ’ 

Selling a property with ‘tenants in situ’ means there is already a tenant living in the property when you sell it. Depending on the terms of the tenancy agreement, the tenant can continue to live in the property under the same terms, even with a new landlord managing the property. The most common type of tenancy is an assured shorthold tenancy, which is an agreement that there is an agreed initial ‘fixed term’, after which you only need to give the tenants two months’ notice to regain possession of your property.  

What are the advantages of selling with tenants in situ?  

Tenants in situ can be an attractive selling point if you are marketing the house to other landlords, as the property offers a guaranteed rental income right away, and they can skip the hassle of finding new tenants. It also means that the property won’t be empty during the conveyancing process, which will protect your rental yield from a lengthy void period.  

What are the disadvantages of selling with tenants in situ?  

When selling with tenants in situ, you will need to market the property as a ‘buy-to-let’ listing. This could narrow the pool of potential buyers on the property market, and low demand can result in the property selling for less. The tenancy agreement cannot be altered by the new landlord without the tenant’s consent, and the lack of control over the terms could lead to delays or even result in the buyer pulling out.  

Evicting tenants and selling with vacant possession  

If you’re able to obtain vacant possession, this is the best way to sell your property to someone looking for a place to call home as you will be able to prepare your property and control its appearance throughout the entire marketing period. You won’t have to worry about your tenants leaving the property messy or cluttered with personal items, and this could be the difference between selling your property quickly or having it linger on the market for longer than you had hoped.  

Getting organised for a sale 

Making sure you are vigilant and willing to put in some legwork early will prepare you for your sale and speed up the process. It’s also incredibly important that you have a good relationship with your tenants, as this will minimise disagreements later down the line. To prepare for your sale, you will need to ensure that you have a current and signed tenancy agreement that could stand up in a court of law should it be necessary. This is in case your tenants refuse to leave the property; in which case you will need to make sure all of the prescribed documents were served correctly at the start of the tenancy. This will include a valid gas safety certificate, an electrical safety certificate and an energy performance certificate.  

You will also need to demonstrate that any deposit was registered within a government-approved scheme. And lastly, you will need proof that your tenants signed for having received all of the documents. 

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I can't speak more highly of the team at Homesearch. When I met Michael to discuss the sale of my home instantly from that meeting, I could tell how knowledgeable they were. From that moment until closing, everything went absolutely flawless. This experience of selling went without a hitch with them giving great tips on preparing my home for viewings. Thank you. I really appreciate all your help during this process. I highly recommend Homesearch to any person who is looking to sell their home or buy a new home.

Loretta Barrett, Seller

I started with two very well known real estates, but I hated it. I was simply another number to them and I didn't feel they were honest and transparent. With HomeSearch I felt comfortable that they were on my side and they were always available to help. The process is hard enough, so having a team who supports you can make such a difference. Highly recommend.

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The reason we chose Homesearch to sell our property was that we liked the straightforward, no-nonsense approach of both Anna and Michael. They gave an honest appraisal of our property and a clear idea of what we could expect to sell it for. In fact, the offer we accepted exceeded our expectations. The sale took longer than we would have liked, due to delays caused by the buyers' solicitor, but Michael was tenacious and must have worn his phone out keeping everyone informed of progress.

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Homesearch are hands down the best agent I have ever worked with ! The team helped me in an extremely complex sale. Without the knowledge and experience of the whole team, my sale would not have completed. I dont normally write reviews, only when they are truly deserved. An exceptional team! Very kind and personable, reliable & trustworthy.

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My experience with Homesearch is that they are professional, friendly and go above and beyond to ensure that something stressful like selling a house runs as smoothly and stress free as possible. They work hard to get the results and have kept me updated throughout the process. I honestly could not recommend them enough, they are easily the best company I’ve dealt with in the buying/selling houses field. And to top it all off, they always answer the phone in the most pleasant tone and always provide service with a smile.

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Homesearch are PROFESSIONALS. I sold my property through Homesearch and I have not dealt with a more competent agency. Every single person  dealt with knew exactly what they were talking about and I can tell that they all have knowledge in the industry and were not just picked up from the street. From the get go I was impressed and I will certainly do business with them again.

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Many thanks Homesearch for locating professional corporate tenants for my property. I am very happy with your property management service as you always ensure that the tenants give the property back in good order at check out. Five Stars!

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I have been absolutely delighted with the exceptional service I have received from Homesearch. They have removed all the stress & hassle of renting my property and dealt with all manner of situations I would have struggled with in such a professional & courteous manner. They give valuable unbiased advice with such a wealth of experience. Nothing is ever too much trouble for the staff, who are always friendly & helpful. Homesearch let and managed my property and I am very happy with their property management services, they are very knowledgeable.

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From our first viewing right through to the present, Home Search were brilliant. They helped make the whole process quick and stress free and even now we are in and settled, they are still happy to assist us with any queries we may have. We couldn't recommend them highly enough.

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