Selling a property that already has tenants in place—known as selling “with tenants in situ” - is increasingly common, particularly among landlords looking to adjust their portfolios. While this route can present some challenges, it also has clear benefits for the right type of buyer. Here’s what you need to know if you’re considering selling your rental property with tenants in place.
What Does “Tenants in Situ” Mean?
A property with tenants in situ is one that is currently occupied by renters under a tenancy agreement at the time of sale. Rather than regaining vacant possession, the landlord sells the property as an investment, transferring the tenancy to the new owner.
Advantages of Selling With Tenants in Situ
- Instant Rental Income for Buyers
Investors often see tenanted properties as attractive, as they generate income from day one. This can make your property more appealing to fellow landlords. - No Void Periods
The new buyer avoids the cost and hassle of finding tenants, reducing the risk of empty months without rent. - Smooth Transition
In many cases, tenants can continue living in the property without disruption, creating stability and reassurance for them and for the buyer.
Considerations for Landlords
- Smaller Buyer Pool
Selling with tenants in situ typically limits your market to investors rather than owner-occupiers, which can affect the sale price. - Legal Compliance
All tenancy agreements, safety certificates, and deposit protections must be up to date. Any issues here can delay or derail a sale. - Tenants’ Rights
Tenants have legal protections during the sales process. You must provide adequate notice for viewings and respect their right to quiet enjoyment of the property.
Tips for a Successful Sale
- Get Your Paperwork in Order – Ensure tenancy agreements, rent records, and compliance documents are complete and accurate.
- Communicate With Your Tenants – A cooperative tenant can make viewings and transitions far smoother.
- Work With an Experienced Agent – A local estate agent who understands both sales and lettings can market your property to the right audience.
- Be Realistic on Price – Consider the balance between securing a faster investor sale and maximising value.
Final Thoughts
Selling a property with tenants in situ can be a smart move, particularly if your goal is a quicker sale to another landlord. It offers clear benefits for investors and can ensure continuity of income for the buyer, it also provides reassurance for the tenants.
At The Property Quarter and The Letting Quarter, we have over 30 years experience in sales, and lettings, and selling properties with tenants in situ. If you are a Landlord looking to restructure your portfolio, please give us a call, our team of passionate property professionals are ready to help.
