Tips for selling a property with a tenant 

If you decide to sell your investment property and have a tenant in situ, it's important you understand the process. Depending on the local market and the demand for buy to let properties, selling with a tenant is often your best option.

A few things to consider when you are selling:

Selling to another landlord

The clearest route for landlords to take if they are selling a property with a tenant in situ is to another investor/landlord. Your tenants won’t have to move out and your buyer will not have the worry of finding another tenant - This is a win win all round.

Your tenants

This is something many landlords overlook, and it’s a mistake to do so. Selling to your tenants can be a great solution, providing they can afford to make the leap.

Tenants who love the property will be keen to stay on, as it’ll mean far less aggravation for them, and you’ll avoid a lot of the same hassles as well. Automatically assuming that your tenants are not in a position to buy is miscalculation many make. Don’t follow suit!

Avoid the void

One of the most common ways in which landlords can come unstuck financially is to incur the dreaded void period for prolonged periods. Selling your property with tenants in situ can help you steer clear of this potentially draining stage. Selling a property without a tenant may take some time to sell and as a result you could potentially lose a lot of rent that would of otherwise would of been paid by your tenant.

Security against fall-throughs

Selling up with tenants in place will add another layer of security beyond that of missed rent; it will also give the landlord some protection against buyers pulling out as well. 

Of course, this will still be frustrating and costly should it happen, but at least the landlord will be able to draw rent while the property gets remarketed and another buyer is sought if their tenants remain in place.

A more attractive investment

Selling your property with tenants in residence will be a far more attractive proposition for investment purchasers.

Professional landlords know how hard good tenants can be to come by. Therefore, if they find a property that suits their needs and it has settled tenants already in there paying rent, they will undoubtedly see the situation as win / win.

Potentially speedier sale

While there are no guarantees, selling a flat or house with tenants in residence could result in a faster sale for the vendor. Those who buy investments do so with their heads rather than their hearts, so it’s either right for them or it isn’t. If it satisfies their requirements, they are likely to want to get the deal done quickly.

Investors often need to move fast to secure the best deals, so you can often expect a smoother sale in this regard.

What do you say to your tenant if you decide to sell the property?

This part of the process is never easy, but it is a vital element that you’ll need to address sooner rather than later. 

Keeping tenants on your side is vital for so many reasons. It is very important to let your tenant know that you intent to keep them in the loop as much as possibly can. Consider how your tenant will feel inviting strangers into their space - for this reason, it's important to go the extra mile when arranging viewings. Block viewings are a great way to do this, as they will keep disruption to a minimum.