Selling a currently tenanted property can be difficult, especially when dealing with long-standing or regulated tenants. Many landlords confuse regulated tenants with those on assured shorthold tenancy agreements (ASTs), leading to misunderstandings and legal complications. Understanding the tenancy type and your legal responsibilities is crucial if you’re considering selling a house with a sitting tenant.
What Is a Sitting Tenant?
A sitting tenant typically remains in a property after ownership changes hands and continues to pay rent. In some cases, particularly with regulated tenants, they may have occupied the property for decades without a written tenancy agreement. These tenants benefit from enhanced rights and protections under historical housing legislation, which can make repossession exceptionally difficult, costly, and time-consuming.
If you inherited a property with a tenant who pays rent but refuses to sign a new agreement, you may be dealing with a regulated tenancy. In these situations, negotiating a formal tenancy agreement can help clarify the tenant’s legal standing and improve the property’s attractiveness to buyers.
Legal Obligations When Selling a Tenanted Property
When looking to sell a home with tenants in situ, landlords must remain compliant with the Protection from Eviction Act 1977. This legislation prohibits any action that could be deemed as harassment, such as:
- Withholding essential services like electricity or water.
- Changing locks or barring access to the property.
- Entering the property without notice.
- Attempting to remove the tenant without a court order.
- Using verbal or physical threats.
These actions can lead to severe legal consequences, including criminal charges.
Approaches to Managing Tenants Before Selling
1. Open and Respectful Negotiation
Start with a conversation. If your tenant cooperates and understands your intention to sell, you can reach an agreement without conflict. If the relationship is strained, consider involving a neutral third party with experience in tenant negotiations. This approach is often more cost-effective than hiring a solicitor and can lead to a swifter resolution.
2. Handling Eviction Yourself
While many online resources offer guidance on legally evicting tenants, the process is riddled with potential pitfalls. Administrative errors—such as incorrect notice forms or missed deadlines—can result in costly court delays. Tenants may also contest the eviction by citing maintenance issues or improper notice.
3. Professional Legal Support
Using a solicitor specialising in housing and property evictions is often the most reliable route. Although it may come with higher legal costs, this ensures that the process adheres to the proper legal framework and minimises delays.
Selling with Tenants in Situ: A Simpler Solution
For many landlords, especially those dealing with complex tenancy arrangements or reluctant occupants, the most straightforward solution is to sell the property with the tenant in place. This choice is particularly appealing if you wish to avoid lengthy legal proceedings or ongoing management responsibilities.
At The Property Buyers, we specialise in purchasing properties with tenants in situ. Whether your property is let under a short-term AST or a regulated long-term tenancy, our experienced team understands the intricacies of these transactions. We offer a fast, hassle-free process and take care of the legal work — giving you peace of mind and a clean break.
We provide a non-refundable deposit on exchange and aim to finish the purchase within 2–3 weeks. Our buyers are comfortable taking on properties with guaranteed rental income, making us a preferred choice for landlords looking to exit quickly and professionally.
Navigating Tenant Rights and Notice Periods
A common misconception among landlords is that tenants must vacate the property simply because it is being sold. In reality, unless there are grounds for eviction under the Housing Act — such as rent arrears of two months or more — a tenant cannot be forced to leave during the term of their tenancy.
For tenants on an assured shorthold tenancy, landlords must serve a Section 21 statement, giving at least two months’ notice. It’s important that this notice is issued correctly and includes all required documentation to avoid legal setbacks.
Property Viewings During Tenancy
Landlords can conduct viewings while the tenant still lives in the property, but this must be handled professionally and respectfully. A minimum of 24 hours of reported notice is required, and viewings should generally occur during reasonable daytime hours. If your tenancy agreement allows for weekend viewings, they must still be carried out carefully and courteously.
Considering Selling Your Property with Sitting Tenants?
If managing a tenanted sale’s legal and administrative burden feels overwhelming, you’re not alone. At The Property Buyers, we help landlords across the UK sell properties with tenants in place — whether short-term or regulated. Visit thepropertybuyers.co.uk to learn how we can help you sell your tenanted property efficiently and ethically without the hassle of evictions.
Simply complete our short online form, and a member of our team will contact you to provide a free, no-obligation valuation tailored to your specific situation.