Selling Rented Property: A Guide for Landlords

Can you sell a property with sitting tenants?

Yes - landlords can sell a rental property even if tenants are still living there, but specific legal steps and notice periods must be followed. The process depends on whether you plan to sell the property with sitting tenants or give notice to regain possession first. As a landlord, you have specific responsibilities and obligations to your tenants, and this guide will show you how to navigate the selling process.

How to sell a property with sitting tenants?

If tenants are under a valid tenancy agreement, you cannot evict them simply because you wish to sell. Instead, you can:

1. Sell with tenants in situ (also known as “sitting tenants”).
2. End the tenancy using the appropriate legal notice.

Key legal options for ending a tenancy:

• Section 21 notice (Housing Act 1988): Requires at least two months’ written notice. This is a “no-fault” eviction and cannot expire before the fixed term ends.
• Section 8 notice (Housing Act 1988): Can be used if tenants have breached the tenancy agreement, such as rent arrears or illegal activity.

Always seek legal or lettings advice before serving notice to ensure full compliance with landlord regulations.

Advantages of selling with sitting tenants

Selling to another landlord with tenants already in place can offer benefits:

• Instant rental income for the new buyer.
• No void period while finding new tenants.
• Reduced marketing disruption - viewings can be limited.

This option is often preferred by investors looking for an existing buy-to-let opportunity.

How to manage viewings when the tenants still live in the property?

You do not automatically have the right to show potential new tenants or buyers around the property. You are only to do this if it is agreed in the tenancy agreement and you give the existing tenants at least 24-hours’ notice in writing. If you do not have this, you will need to ask the tenants for permission. 

What happens if the purchaser becomes the new landlord of the tenants?

When a property is sold with tenants in place, the buyer becomes the new landlord.

• The existing tenancy agreement remains valid, though the landlord’s name and payment details will change.
• Tenants are not required to sign a new contract but must be formally notified in writing of the change in ownership and rent payment information.
• A new tenancy agreement can be signed later for clarity and administrative ease.

haart can help

At all stages, it is important to seek advice and professional help from your lettings agency to guide and support you. haart offer full management and protection to help landlords.

If you would like any help or advice, please contact your local haart lettings branch.