Selling a property that’s currently rented can be a sensitive process, especially if your tenants are still living in the home. Whether you’re selling to another landlord or planning to list the property as vacant, there are clear rules to follow and best practices to help things go smoothly.
This guide explains what a sitting tenant is, what the law says, and how to communicate the sale with professionalism and care.
What is a sitting tenant?
A sitting tenant is someone who lives in a property under an existing tenancy agreement — usually an assured shorthold tenancy (AST) or a regulated tenancy. In short, they’re still living in the home when the landlord decides to sell it.
Sitting tenants have legal rights, and landlords have a duty to respect the terms of their tenancy even during the sale process.
The Renters’ Rights Bill
The upcoming Renters’ Rights Bill is expected to bring several changes to the private rental sector, including the end of Section 21 “no fault” evictions and a shift to a single system of periodic tenancies.
Extended notice period
Under the new rules, all evictions will need a valid reason, such as the landlord needing to sell the property. Notice periods may also be extended in some cases. If you’re planning to sell your property with vacant possession, it’s essential to factor in these upcoming changes and give your tenants the appropriate notice.
Do sitting tenants devalue your home?
In some cases, having a sitting tenant can reduce the property’s value, particularly if the tenancy type restricts rental increases or if there are maintenance issues. That said, a tenanted property may appeal to buy-to-let investors who want immediate rental income.
It all depends on your buyer. If you’re selling to another landlord, a sitting tenant might be a selling point. If you’re marketing to owner-occupiers, it may be seen as a complication.
How to inform your tenants
Selling a property can be stressful for tenants, especially if they worry about losing their home. A clear, respectful approach can help maintain goodwill throughout the process.
Maintain a good relationship with your tenants
Your tenant is more likely to cooperate with viewings and provide access to the property if you have a good working relationship. Let them know your reasons for selling and how you intend to support them through the process.
Communication is key
Tell your tenants as soon as you’ve made a decision. Be transparent, answer their questions, and provide reassurance. If you’re not asking them to move out, clarify that their tenancy will continue under the new owner.
Give the two months’ notice
If you’re asking your tenant to leave, you’ll need to serve a Section 21 notice under the current system, giving at least two months’ notice. Make sure your tenancy agreement and deposit protection are in order before doing so, as any issues could invalidate the notice.
Inspect the property
Before listing, visit the property to assess its condition. Agree with your tenant about any repairs or tidying that may need to be done. A well-presented property helps attract buyers and speed up the sale.
Appoint solicitors, a conveyancer and an estate agent
Choose professionals who are experienced in selling tenanted properties. Your agent should be able to manage viewings around the tenant’s availability and explain the situation clearly to potential buyers.
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Organise photography and viewings with current tenants
Give your tenant plenty of notice before arranging photos or visits. Try to be flexible with timing and always respect their privacy. You must give at least 24 hours’ written notice before entering the property.
Gather relevant documents for your property
Make sure you have:
- A copy of the tenancy agreement
- Proof of deposit protection
- Gas and electrical safety certificates
- Energy Performance Certificate (EPC)
- Records of maintenance and inspections
Having everything ready from the start makes the process quicker and less stressful for everyone involved.
Pros and cons of selling with tenants in situ
Advantages:
- Immediate rental income for the new owner
- Attracts investor buyers
- No void period or loss of rent during the sale
Disadvantages:
- Smaller pool of potential buyers
- Lower market value if the tenancy limits rent increases
- Tenants may be less cooperative with viewings
What to consider when opting for eviction
If you’re selling to someone who wants vacant possession, you may need to serve notice and wait until your tenant moves out before listing the property.
This route can take longer, and there’s always the risk of delays if the tenant struggles to find a new place. You may also have a void period where the property is empty and not generating rental income.
Think carefully about your timeline and finances before deciding to evict.
Are you a landlord? We’re here to help
Selling a property with a sitting tenant can feel complex, but you don’t have to do it alone. At Ellis & Co, we understand the legal process, your responsibilities, and how to market tenanted homes with care.
Whether you’re looking to sell to another landlord or secure vacant possession first, our experienced team can help you find the best route forward.
Further reading from Ellis & Co
- How to encourage a long-term tenancy
- Why DIY tenancy agreements are a bad option for landlords
- Top 10 mistakes that landlords make – and how to avoid them
