Many landlords assume they have to get the tenants out before they can sell. That can mean months of lost rent, an empty property, and a lot of stress for everyone. In many cases, there’s a better option: selling with the tenants in place to an investor who wants a property that’s already let.
Here’s what you need to know.
Your options
Sell to an investor with tenants in place
This is often the simplest route. The buyer takes over the tenancy, the tenants stay in their home, and you keep receiving rent right up to completion. Investors like tenanted properties because the income starts on day one.
Sell empty on the open market
Selling vacant usually opens up more buyers, including owner-occupiers with mortgages, so it can achieve a higher price. But you’ll need to end the tenancy properly, which takes time and must follow the current rules, and you’ll lose rent while the property is empty and on the market. Always take advice before serving any notice.
Sell at auction
Auctions regularly sell tenanted properties to investors, with a fixed timetable. It’s a good fit if you want certainty on dates.
The landlord’s document checklist
Buyers of tenanted properties, and their solicitors, will ask for these early. Gathering them before you start is the single biggest thing you can do to avoid delays.
- The tenancy agreement, signed, plus any renewals.
- Deposit protection certificate and the prescribed information given to the tenant.
- Gas safety certificate (current), if there’s a gas supply.
- Electrical installation condition report (EICR).
- Energy performance certificate (EPC).
- Rent statement, showing what’s been paid and any arrears.
- How to Rent guide confirmation, if it applies to your tenancy.
- HMO or selective licence, if your property needs one.
- Details of any ongoing issues, repairs or disputes.
Missing or out-of-date documents don’t always stop a sale, but they can reduce what a buyer will pay, or cause weeks of back and forth between solicitors.
Talking to your tenants
Tenants will usually be more cooperative if they hear early and honestly what’s happening. If you’re selling to an investor with the tenancy in place, reassure them that their tenancy continues and nothing changes day to day. Agree reasonable notice for any viewings or surveys, and stick to it.
Selling more than one property?
If you’re reducing or exiting a portfolio, you may be able to sell several properties to one investor, or stagger the sales to suit your tax position. Speak to your accountant about the timing. See our guide to exiting a landlord portfolio.
How Heritage can help
We work with private investors who buy tenanted properties across the North of England and the Midlands. We’ll tell you which documents a buyer will need, introduce your property to investors who are a good fit, and agree a clear net figure with you before anything goes ahead. Our team then chases the solicitors through to completion, so you’re not left wondering what’s happening.
Read more about selling a tenanted property, or tell us about yours and we’ll come back to you with your options.