Selling a house is known to be one of the most stressful experiences that any one person can have in their lifetime – but what if you’re a landlord with sitting tenants who is looking to sell? Things just got that little bit more complicated.
Unfortunately in the last few years, landlords everywhere have experienced the government’s regulations being enforced which has led to their profits reducing as well as the rise of difficult tenants making the jobs of the property owners less than desirable. This is why more and more landlords are looking to sell buy to let properties in their portfolios at present.
It can be difficult to know what to do in regards to the existing tenants, so today we’re going to explore what the challenges can be, and what you can do to solve them.
Selling with Tenants
It can be difficult to know to sell with a tenant in situ, but luckily, it’s not impossible, and it’s not as challenging as you might think.
One of the perks, is that it could actually end up costing you less in the short term. The problem is if you’re a landlord with an empty property, you’re ultimately losing money. Depending on the state of the market at present and the location and desirability of the property you’re selling it could actually end up taking a while for it to be taken off the market. In a desirable area, a property could go in as little as six weeks. However, in some areas where the local council may be slower, it could take them that amount of time alone to come back with all of the necessary searches. This time is before you’ve even managed to get the property on the market, so can cause massive delays in the selling process overall.
If the property therefore doesn’t sell for a long time and remains empty, you’re actually going to lose money, whereas if you had tenants, you’d actually still have an income from them. Likewise, if you’re looking at selling to another landlord, a sitting tenant can make the property all the more desirable to them. This is because the new owner would therefore be guaranteed to have an income on the property from the word go, and won’t have to search for a tenant themselves. Plus, they don’t have to think about refurbishing or renewing in order to make it desirable. It makes their life easier, and their finances more certain.

What are the Logistics of Selling with Tenants in Situ?
It’s important to know the logistics of selling a property that’s currently being let out

to tenants so that everybody knows where they stands in regards to the sale.
Usually in a tenancy contract, there’ll be a clause that stipulates if the landlord wishes to sell the property, then tenants have to allow the viewings to take place. However, tenants will require appropriate notice of the viewings, and this is usually around twenty four to forty eight hours in advance. All contracts are different, so it’s important to check yours. If there’s nothing in the contract about this, then you’re just going to have to trust in your tenants being nice.
Of course, you also have to consider the deposit itself – and transferring this tends to be fairly easy, but the process itself does depend upon the scheme the landlords choose to use. In order for the deposit to remain protected, the responsibility falls on both the current landlord, and the buyer. These schemes differ between Great Britain, Scotland and Ireland, so be sure to do your research and know which ones are on offer to you depending on where you’re either selling or buying.

What Could Go Wrong?
Last of all, like with anything, there’s always something that could go wrong.
Sometimes, tenants will choose to leave their property and stop renting whilst the house is still on the market. This tends to be because they’re unhappy with the viewings and disturbances they’re subjected to due to the sale.
If you’re worried about this, make the extra effort to ensure that they’re happy throughout the process, and do everything you can to make it easier for them. This not only makes the overall experience more pleasant for them, but could also save you a lot of hassle in the long run. For example, try not to book viewings first thing on a Sunday morning – and work on a timetable that’s suitable for not only you, but your tenants too. Keep everyone happy, and you’ll be happy too – trust us.