If you’re a landlord in the Romford area, and you’re thinking of putting your property up for sale, you might be wondering how easy selling a property with tenants is going to be.
There’s no avoiding the fact that having sitting tenants – or tenants in situ as they are also called – will put off buyers looking to live in the property immediately. However, it’s not all bad news. Selling with tenants may be an attractive prospect for investor landlords – who get a rental property without the hassle of finding tenants to fill it. To help you decide whether selling a property with tenants is the right thing for you, we look at the issues involved, your other options and some of the key things you should know.
What is a sitting tenant or tenant in situ?
A sitting tenant is someone who is renting the property at the time of the sale. They may be intending to stay in the property once it is sold – if they are still in the fixed term of their contract, they are entitled to do so.
Can you sell a property with tenants in it?
Yes, you can sell the property if you wish, but as a courtesy you should let your tenant know of your plans. Your tenants may wish to put in an offer on the property, themselves, if you give them the opportunity.
How many months’ notice should a landlord give to a sitting tenant?
If you are planning to sell the property with sitting tenants, there is no legal notice period you will need to give.
If you decide that you’d rather market the property without tenants you may be able to ask them to leave, using a Section 21 no fault eviction notice. Be aware that the government has plans to reform the law in this area. If the tenant is no longer in the fixed period of their tenancy, you can give them two months’ notice to vacate the property. Read full details of how to do this on the gov.uk website.
What are the tenant’s rights if the landlord wants to sell?
If the tenant has an assured shorthold tenancy, as most do, they have the right to remain in the property during the fixed term of their tenancy.
Can a landlord sell a property with tenants to another landlord?
Yes – and unless you are able to give your tenants notice to leave the property, or they are interested in buying it themselves, you will only be able to sell to another landlord who is happy to take the place with its existing tenants in situ.
Can the tenant refuse viewings?
This depends on whether you added a clause about viewing into your tenancy agreement. If you didn’t, you may need to rely on your tenants’ goodwill. Be considerate when arranging viewing times. As with any visit to the property, you’ll need to give them at least 24 hours’ notice in writing and get their permission. You might want to offer an incentive to encourage them to be helpful over viewing, such as a rent reduction.
What are my options if the tenant refuses to leave?
If they are still in the fixed term of their tenancy, there isn’t much you can do other than wait before selling – unless they have defaulted on their rent or otherwise broken their tenancy agreement. In this case you may be able to evict them using a Section 8 notice. Once the fixed term has passed, you can currently give them notice to quite using a Section 21 notice.
What is the process of selling a buy-to-let property with tenants in situ?
The steps you’ll need to take if selling with tenants are as follows:
- Inform your tenants of your intention to sell as early as possible and find out if they want to remain in the home or if they are interested in buying it.
- List the property for sale, making it clear to buyers that it has tenants in situ.
- Get your tenants’ permission before viewings of the property take place.
- Instruct a conveyancer or solicitor with experience of selling with sitting tenants.
- Accept an offer on the property – your solicitor will draw up a contact specific to your situation.
- Your solicitor will transfer the tenancy agreement to your buyer and transfer the name on the tenancy deposit scheme to theirs.
- Completion will normally happen on the day the rent is due so there is no need for moving payments between buyer and seller
If you’re thinking of selling a property with tenants in the east London and Essex areas of Romford, Hornchurch, Ilford, Dagenham, Rainham, Upminster or Harold Wood, we’d be happy to advise you further about your options and the pros and cons. We’d also love to offer you a valuation of the home, to help you decide. Contact us today.
