How landlords can sell properties

If you are a landlord there is a chance that you want to sell up. After all, a recent survey reckons 1 in 10 landlords are planning to quit the property market.

So, if you are one of those looking to sell your property, what do you need to know?

If you want to sell a rental property, there are two options available:

•   Sell with vacant possession
•   Sell with tenants in situ

Here, we give you the inside track on each option.

Selling with vacant possession

For many landlords, selling with vacant possession is preferable, especially if they want to attract buyers who are planning to live there rather than rent it out. When selling with vacant possession the property is empty on completion day, leaving the new owner to move in. If the buyer wants to rent it out, they can find new tenants.
To do this, you could serve notice on your tenants immediately. There are pros and cons in doing this:

Pros

•  The property is empty so your estate agent can show up at any time to carry out viewings.
•  You don’t need to keep your tenants in the loop or ask them for access.

Cons

• As soon as the property is empty you won’t have any rental income.
• Any delays will hit you in the pocket as you’ll need to pay the mortgage and bills from your own funds.

The alternative is to tell your tenants that the property is going to be put on the market and ask them to co-operate with viewings. Once the property is sold, you can then serve notice to your tenants.

But the issue here is that the notice period is usually two months – but it could be longer. While a sale may take time to be completed, it could mean the buyer needs to wait before your tenants move. Some may not be willing to do so and this could affect your sale.

Selling with tenants in situ

Rather than trying to serve notice on your tenants, you could sell with them in situ. As you would expect, this means the tenants continue to live in the property.

Such a move would be perfect for anyone who wants to buy to let. You can sell the property and the tenancy agreement and deposit transfers to the new buyer. As a result, they have an immediate rental income.

But selling in this way narrows your market. Not everyone is looking for a buy-to-let property and if the survey already mentioned is correct, it could make your property harder to sell because people want to leave that market.

You also have the issue of dealing with your tenants, who may not be happy that you’re selling. They can’t stop you, but it’s better to have them on side.

How to sell with tenants in situ

Selling your property with tenants starts in the same way as any other property sale. You inform the tenants of your intentions, put the property on the market and ensure you advertise it stating there are sitting tenants. You can then arrange viewings.

It can be a bit more complicated once your offer is accepted, so find a conveyancing solicitor with experience in these transactions. You will need a contract that permits the sale with sitting tenants and navigate other logistics of selling with tenants in situ, such as the transfer of the tenancy agreement and the deposit.

If you are planning on selling your property, contact our experienced team at Jill Moore Select Property