Selling a House with a Sitting Tenant: A Complete UK Property Guide

Selling House with Sitting Tenant
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Selling with sitting tenants terrifies most estate agents.

Last week, David’s agent refused his instruction. “Impossible to sell,” they said. His tenant had three years left on their lease.

We completed his sale yesterday.

Sitting tenants don’t stop sales. They just change the buyer pool completely.

I’ve handled many tenanted property transactions. From problem tenants to perfect ones, each sale taught me buyer psychology.

Here’s the truth: Some buyers prefer sitting tenants.

Guaranteed rental income from day one appeals to many investors.

This guide reveals my tenanted property strategy. You’ll discover which tenant situations add value and which destroy deals.

The critical factor? How you present the tenancy story.

Your “problem” tenant might be your strongest selling point.


Understanding Your Legal Rights When Selling a Property with Sitting Tenants

Understanding Your Legal Rights When Selling a Property with Sitting Tenants

You can sell your rental house even with tenants still living there.

I’ve helped many landlords sell houses while tenants stayed in them. Your rights depend on what type of tenancy agreement you have. Fixed-term agreements run for set periods, like 6 or 12 months. Periodic agreements continue month by month.

Tenants have the right to live in the house without being bothered too much. You can’t harass them or make their life difficult.

You must give proper notice before showing the house to buyers. Usually this means 24 hours written notice for viewings. Tenants can say no to some viewings if you ask too often.

Tenant deposits must stay protected in approved schemes during the sale. You need to transfer these protections to new owners properly. Right to rent checks prove tenants can legally rent in the UK.

The Housing Act 1988 and Landlord and Tenant Act 1985 set out your main rights and duties. These laws protect both you and your tenants during sales.

Consider specialists who buy rental houses with problem tenants if normal sales prove difficult. Some buyers prefer houses that already have good tenants paying rent.


Methods for Selling Your Tenanted Property in the UK

Here are the 3 primary approaches to sell your property when sitting tenants are in place…

Estate Agents

The conventional route creates obstacles for houses with sitting tenants:

  • Average sale period: 12-18 months (considerably longer – buyers are wary of tenant complications)
  • 2 out of 3 sales fall through (most collapse when purchasers learn about tenancy situations)
  • You need agents familiar with sitting tenants and tenancy law
  • You’ll encounter these costs:
    • Agent fees (up to 3%)
    • Legal costs (up to £4,000)
    • Tenancy assessments and legal documentation (£500-£1,500)
    • Tenant management during sale process (£2,000-£15,000)
    • Void period expenses if tenants vacate (£1,000-£5,000)
    • Extremely few buyers want properties with sitting tenants

Property Auction 

Auction selling brings investors who specialise in sitting tenant properties:

  • Duration: 3-4 months
  • Sale finalises instantly when hammer falls
  • Important factors:
    • Property sold as-is – bidders understand all tenancy arrangements
    • Draws property investors and rental specialists
    • Perfect for investment portfolios – attracts suitable buyers
    • Must declare completely about sitting tenants in sale literature
    • Wait 4-8 weeks until auction day
    • Wait 28 days to finalise sale
    • Registration fees (up to £1,000)
    • Auction house charges (up to 6%)
  • Full sitting tenant details must be shared with all bidders

Check our guide on selling a house at auction to learn how this process works for properties with sitting tenants.


Benefits and Challenges of Selling with Tenants in Situ

Selling with tenants has good points and bad points. Understanding both helps you make the right choice. Some landlords benefit while others should wait.

Benefits

Rental Income Continues
  • You keep getting rent money while selling.
  • Monthly rent keeps coming in during the sale process. This helps pay your mortgage and bills. Empty properties make no money.
  • Rent covers holding costs like insurance and council tax. Selling your house fast with tenants means steady income.
Investors Want Income Properties
  • Property investors like buying tenanted properties.
  • They get rental income from day one. No need to find tenants or market empty properties. Good tenants are hard to find.
  • Investors pay fair prices for properties with reliable tenants. They understand rental yields and property returns.
Lower Preparation Costs
  • You don’t need to spend money preparing empty properties.
  • No deep cleaning or expensive decorating needed. Tenants’ furniture hides property flaws. No staging costs or utility bills.
  • Save thousands on preparation and marketing costs. Properties sell as-is with sitting tenants.
Proven Rental History
  • Buyers can see actual rental income records.
  • Bank statements show real rental payments. This proves the property makes money. Empty properties have no income proof.
  • Good rental history attracts serious investors. Payment records show tenant quality.
No Empty Property Costs
  • Empty properties cost money with no income.
  • Council tax increases for empty homes. Insurance costs more for vacant properties. Utilities still need paying.
  • Security becomes a problem with empty houses. Tenanted properties stay occupied and secure.

Challenges

Fewer Potential Buyers
  • Most buyers want empty houses they can move into.
  • Only investors buy properties with sitting tenants. This means fewer people bidding. Less competition often means lower prices.
  • Family buyers can’t view properly with tenants there. First-time buyers avoid tenanted properties completely.
Viewing Problems
  • Showing properties with tenants is difficult.
  • Need 24 hours’ notice for viewings by law. Tenants can refuse unreasonable requests. Some tenants deliberately make viewings difficult.
  • Limited viewing times reduce buyer interest. Weekend viewings often work better.
Lower Sale Prices
  • Tenanted properties sell for 10-20% less than empty ones.
  • Buyers discount prices for the inconvenience. Viewing restrictions put buyers off. Less competition keeps prices down.
  • Investment buyers expect discounts for quick purchases. Cash buyers want even bigger reductions.
Mortgage Problems
  • Many buyers can’t get mortgages for tenanted properties.
  • Residential mortgages don’t work with sitting tenants. Buy-to-let mortgages have stricter rules. Deposit requirements are higher.
  • This reduces the number of potential buyers significantly. Cash buyers have more advantages.
Legal Complications
  • Selling with tenants creates extra legal work.
  • Tenancy agreements transfer to new owners. Deposit protection must continue. Tenant rights need to be protected throughout.
  • More paperwork and legal costs are involved. Solicitors need experience with tenanted sales.


Managing Viewings and Tenant Relations During the Sale

You must give tenants 24 hours written notice before any house viewings.

I’ve worked with landlords who tried to show houses without proper notice and got into legal trouble. Tenants can refuse viewings if you don’t give enough notice or ask too often. They have the right to live peacefully without too much disruption.

Work with your tenants to find viewing times that suit everyone. Weekends and evenings often work better for tenants.

Good tenant relationships make sales much easier. Happy tenants will keep the house tidy and be polite to buyers. Angry tenants can say bad things about the house or refuse to let people in.

Some tenants don’t want to help with viewings because they’re worried about being asked to leave. Be honest about their rights and what happens after the sale.

Messy or rude tenants can put buyers off completely. Consider offering small payments for keeping the house clean during viewings.

Uncooperative tenants need careful handling to avoid harassment claims. Always follow legal notice periods and be polite. Document all communications in case of disputes later.

Consider specialists who understand tenant situations if normal sales become too difficult. Some buyers like houses with complex situations, including difficult tenant relationships.

Keep tenants informed about the sale process to reduce their worries.

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Valuation Considerations for Tenanted Properties

Houses with tenants sell for less money than empty ones.

I’ve seen tenanted houses sell for 10-20% less than similar empty houses. Most buyers want to move in right away and don’t want tenants there. This means fewer people want to buy your house.

Current rental yield shows how much money the house makes each year. Good rental income attracts more buyers who want investment houses.

Long tenancy deals can put off buyers who want more control. Short deals or monthly tenants give buyers more choices. Some areas have lots of people wanting to buy rental houses, while others don’t.

Get professional valuations to set the right price for tenanted houses. Normal estate agents often don’t understand rental house values. Getting your house valued right stops you from wasting time with the wrong prices.

Look at what similar rental houses sold for in your area. Don’t compare with normal family homes, as they sell for different reasons.

Investment buyers care more about rental money than how the house looks. Good tenants paying fair rent can help you get better prices.


Alternative Options: Vacant Possession vs Tenanted Sale

You have two main choices when selling rental properties. 

Each option has different costs and benefits. Choose the one that fits your situation best.

Vacant Possession

Serving Tenant Notices
  • You must give tenants proper legal notice to leave.
  • Section 21 notices need a 2-month warning. Section 8 notices vary by reason for eviction. Use the correct forms or notices won’t work.
  • Get legal help to serve notices properly. Mistakes let tenants challenge notices in court.
Legal Timeline for Removal
  • Removing tenants takes time, even with valid notices.
  • Minimum 2 months for Section 21 notices. Some tenants leave voluntarily after notice. Others fight eviction through the courts.
  • Court proceedings add 3-6 months extra time. Bailiffs enforce eviction orders if needed.
  • Plan 6-12 months total for difficult cases.
Costs of Getting an Empty Property
  • Removing tenants costs money before you sell.
  • Legal fees range from £500-£3,000 per case. Court costs add £300-£600 extra. Bailiff fees cost £150-£400.
  • Empty properties need security and maintenance. Insurance costs more for vacant homes.
  • Budget £2,000-£5,000 total for the eviction process.
Higher Sale Prices
  • Empty properties usually sell for more money.
  • Vacant possession adds 10-20% to sale prices. More buyers compete for empty houses. Family buyers pay top prices.
  • Better viewing access increases buyer interest. Properties show better without tenants’ belongings.
  • Higher prices offset eviction costs.
Risks of Empty Properties
  • Empty properties create new problems and costs.
  • No rental income while marketing the property. Council tax increases for empty homes. Vandalism and break-ins become risks.
  • Utility bills continue with no rental income. Security measures cost extra money.
  • Properties can stay empty for months.

Tenanted Sale

Start Marketing Immediately
  • Selling a tenanted property needs no tenant removal first.
  • Put the property on the market straight away. No waiting for eviction processes. No legal costs for removing tenants.
  • Start viewings within days of marketing. Investors buy properties with sitting tenants.
Faster Sales with Investors
  • Property investors make quick buying decisions.
  • They understand rental yields and returns. Cash buyers complete in 2-4 weeks. No mortgage delays or surveys.
  • Investors want income properties immediately. Less time wasted with unsuitable buyers.
  • Quick sales reduce holding costs.
Keep Rental Income
  • Rent money keeps coming during the sales process.
  • Monthly rent covers the mortgage and bills. No void period costs or losses. Steady income until completion.
  • Rent helps with moving and buying costs. No financial pressure to sell quickly.
  • Income continues until keys are handed over.
Lower Selling Costs
  • Selling with tenants costs less overall.
  • No eviction legal fees or court costs. No empty property insurance or security. No utility bills for vacant homes.
  • Properties sell as-is with no preparation. Marketing costs are the same either way.
  • Total selling costs are much lower.

Making Your Choice

  • Consider your situation carefully before deciding.
  • Quick sales favour tenanted sales. Maximum prices favour vacant possession. Financial pressure suggests keeping tenants.
  • Good tenants make selling easier. Problem tenants make vacant possession better.
  • Calculate total costs for both options first.


Why Choose Property Buyers Today for Your Tenanted Property Sale

If you want to sell your house fast when it has sitting tenants, we might be perfect for you.

I’ll be honest with you. We will offer less money than an estate agent would tell you to ask for. But we will always give you our best price and make everything easy for you.

We have bought sitting tenant properties in just 10 days from when we made our offer. This is why many landlords pick us to work with…

Sell your house fast with Property Buyers Today. Skip the hard parts of selling houses with tenants still living there.

Speed

Most house sales take months, but we can buy your property in as little as 7 days.

This quick process is perfect if you need to move soon or want to avoid being stuck in a long chain of buyers and sellers. We have the cash on hand so don’t need to wait for mortgages or a chain to collapse. 

Guaranteed Sale

Did you know 1 in 3 sales fall through on the open market?

We know how frustrating it is to get 6 months into a process and have a buyer pull out.

When we give you the final price for your house, that’s the amount you’ll get. Guaranteed!

No Costs 

You won’t face any costs with us.

We handle all the expenses involved in buying your property, including legal fees and surveys. You get cash in your bank when the sale is complete, and there are no surprise estate agent commissions to worry about.

No Stress Or Hassle

Our team supports you through the whole selling process.

We keep you updated about what’s happening and answer any questions quickly. You’ll always understand what’s going on with your sale and what happens next.

Free Property Valuation 

Our property experts will value your house at no cost to you.

They look carefully at your property and check local market prices to give you an accurate figure. This professional service comes with no obligations.

No Viewings Required

Forget about cleaning and tidying for viewings.

We don’t need multiple visits or open houses to make our offer. This means no strangers walking through your home, and no disruption to your daily life.

All Properties Welcome 

Whether your house needs work or is in perfect condition, we’ll buy it.

We have experience with all types of properties and conditions. This means you can sell your house to us no matter what state it’s in.

Professional Legal Service 

Our expert team manages all the legal requirements for you.

We work with experienced property lawyers who make sure everything runs smoothly, and put your property at the top of their list. This gives you peace of mind that your sale is being handled properly from start to finish.

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