A guide to Selling Rented Property

Depending on your tenants, selling rented property can become complicated. As a landlord, you have responsibilities and legal obligations - it’s important to make sure you’re within the guidelines.

This guide will help landlords with selling rented property if they still have tenants living there.

What is a sitting tenant?

This guide is referring to sitting tenants; the tenant who occupies a rental property when there is a change of landlord or the landlord decides to sell.

This information doesn’t apply if you’re selling at the end of a tenancy agreement or haven’t entered a formal tenancy agreement yet.

How can I sell the property with sitting tenants?

First, it’s important to note, that you’re not legally allowed to evict tenants just because you want to sell the property. You can sell with sitting tenants, or you will need to give the tenants notice at the end of the tenancy.

Am I breaking tenant's rights?

As a landlord, you’ll know that tenants have a right to be given notice. There are two types of notice;

1) Section 21 of the Housing Act 1988

To use Section 21, landlords need to give at least two months notice. This may change, depending on other conditions find out more here

2) Section 8 of the Housing Act 1988

Using Section 8 means you can take possession of the property at any time, under certain circumstances including if the tenants are;

Using the property for illegal reasons
Behind in payments

Find out more on Section 21 and Section 8 here - Gov.UK

How shall I manage viewings with tenants still living there?

Even as a landlord and owner of the property, you don’t automatically have the right to host viewings when selling or renting property. If it’s in the tenancy agreement, you simply need to give the existing tenants at least 24 hours notice in writing.

What if the purchaser becomes the new landlord?

If the pid, but the landlord’s name will need to be changed. In these cases, it is useful to get the new tenancy agreement agreed upon and signed as soon as possible.

At times, the tenant may decide to refuse to sign anything. They have the right to do this and in this situation, the new landlord should communicate in writing with the tenants telling them about the change of landlord and giving them the new payment details for the rent.

What if the purchaser becomes the new landlords?

The landlord’s name will need to be changed. In these cases, it is useful to get the new tenancy agreement agreed upon and signed as soon as possible.

Speak to Felicity J Lord

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