If you’re a landlord looking to sell your rental property, selling your house with sitting tenants shouldn’t have to be a problem. There are several things you can do that will help the sale of your house go through smoothly, particularly if you have a poor relationship with the tenants or the rental market is slow. We’ve compiled the list below that will go some way in arming you for this situation.
Can I sell my house with sitting tenants?
• The majority of landlords choose to sell their property with sitting tenants. These are occupants living in a property that the owner intends to sell. If the tenant has an ongoing contract with their original landlord, they retain the right to continue living in the rental property when it is sold.
• To evict tenants, a landlord needs to serve a valid Section 21 Notice under the Housing Act 1988. This can only be given once a tenancy term has ended, or if a legal break clause is used to end the tenancy early. Landlords must give a minimum of two months’ notice before eviction, which can be very impractical if you’re wanting to sell your rental property quickly.
Benefits of selling with sitting tenants
Some landlords will look to buy a property with sitting tenants as a way to ensure a secure income, as they won’t have to find new tenants and can enjoy instant rental income. Other advantages of selling with sitting tenants include:
• No need for lettings agents: If a landlord purchases a property with the tenants already in, there is no need for a rental estate agent. This saves on fees, the cost of making up new paperwork and time spent having to find a deposit protection scheme.
• Tenants already Vetted: The next landlord has the assurance that the tenants already are looking after the property. It also saves the landlord time looking into the tenants’ occupation, payment history and references.
• No set-up costs: Buying a property with tenancy saves the new landlord from having to find tenants, conduct credit checks and write up a new tenancy agreement.
• Reduce financial loss: Rental properties in some areas can take many months to sell. It’s never good to have a rental empty. By selling with sitting tenants, the current landlord is guaranteed money until the sale completes.
Assure your tenants they’ll be given plenty of notice before any viewings from buyers that are shown around the property. This can also be said for surveyors inspections. Speak to your tenant and ask what would make the process easier for them whilst the house is on the market. Try and see it from their point of view, they might have lived in the property for a long time and now they have to allow strangers to walk through their home. So ensuring you get them onside will serve you well throughout the sale.
Selling with sitting tenants can be hard, but if you have a good relationship with your renters and other landlords are searching for rented properties on the market, it can be a good way to guarantee a swift house sale.
If you’re a homeowner looking to sell your property swiftly, contact our experienced team at Swift Move Now today.