Guide to Selling a House With Sitting Tenants in North London

What’s the best way to approach selling a tenanted property? Before putting your rental property on the market, it’s worth finding out what’s involved so you can anticipate the ups and downs.

Being a landlord can be very rewarding, and North London has a high proportion of renters. Rental properties tend to be sought-after in West Hampstead, for example, while almost half of Willesden Green households rent privately – one of the highest proportions in Brent.

However, you may have decided it’s time to sell up and move on to new opportunities. If your property is still tenanted, then a crucial question lies ahead – can you sell a house with a tenant in it?

Is it legal to sell a house with tenants?

Yes, it is legal to sell a house with tenants in situ. The buyer will become the landlord and take on the tenancy agreement.

Why sell a house with tenants as a landlord?

Landlords can avoid losing income if the house takes a longer time to sell, and it may be more straightforward than evicting during the fixed term of a tenancy. Perhaps you also want to continue providing a home to good tenants by finding another landlord to buy the property.

Is it better to sell a house with tenants?

Selling your rental property with sitting tenants allows you to receive income until the sale completes, and the new landlord to benefit from immediate income from tenants with a proven history. You won’t have for the 60 days’ notice period to pass, or worry that they won’t leave by the deadline. However, the tenants may need reassurance.

Is it hard to sell a house with tenants?

It’s sometimes easier to sell a house with vacant possession – in other words, to evict the tenants before selling. In these financially challenging times, selling a property is now the most common reason for ending a tenancy, according to research for the National Residential Landlords Association (NRLA).

Your pool of potential buyers is limited to landlords, which can lower your property’s selling price. But if you want to sell with vacant possession, you must serve a Section 21 ‘no fault’ eviction notice correctly if it’s an assured shorthold tenancy agreement, or your tenants can challenge the eviction.

Considerations & rules for selling a house with tenants

Even though your priority is now finding a potential buyer, as a landlord selling a house with sitting tenants or tenants who have yet to move out, you must still respect your tenants’ rights during the sales process.

• Your tenant’s right to quiet enjoyment still stands. When selling tenanted properties, landlords have the right to arrange viewings at reasonable times if the tenancy agreement states it, but you must give 24 hours’ notice and get permission.
• If you do decide to evict the tenants, be sure you follow the eviction process correctly to avoid delaying or losing a sale.
• Happy tenants are more likely to be cooperative. Keep them in the loop about your plans to sell with sitting tenants, and be gracious if they can’t accommodate a request.
• If it’s a furnished rental, it’s usually sensible to include the furniture with the property.
• Investment buyers don’t want to walk into a tricky legal situation, so ensure that all the tenancy documentation is in order and ready to hand over.

How to sell a rental house with tenants

To help you, we’ve prepared a summary of the process explaining how to sell a house with a sitting tenant:

1. Notify your tenants – Notify your tenants that you’ve decided to sell, and give your tenants two months’ notice if you decide to sell with vacant possession.
2. Prepare to sell – As with any property sale, meet with and engage estate agents and conveyancing solicitors.
3. Arrange viewings – Work with your tenants to arrange viewings, and observe notice periods for access without fail.
4. Landlord documents – Gather your gas and electrical safety certificates, tenancy agreement, inventory and Right to rent evidence for the future buyer.
5. Deposit protection – Tenancy deposits are taken seriously, so ensure it’s handed over correctly. Transfer the deposit to the new landlord’s name.
6. Taxation – Capital gains tax must be reported and paid within 60 days of selling a buy-to-let property, as explained on gov.uk. Your conveyancer will usually handle this.

Ultimately, your situation will have a bearing the best way to sell the property, and it’s worth seeking expert advice to make sure the transition is handled well.

Know how to sell a house with sitting tenants?

If you are a landlord who is planning to sell your property in Dollis Hill, Cricklewood, Neasden or nearby areas of North London, we will be glad to assist. Find out more about operating as a landlord in north London with our guides on deposit disputes, landlord repair obligations, and rent increases.

Contact Portland to find out what we can do for you.