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Navigating the Process of Selling Tenanted Properties: What You Need to Know
If you own a rental property, there may come a time when you decide to sell the property. But what happens if you have a tenant in place? Selling a tenanted home requires a bit of extra planning and communication to ensure a smooth process for everyone involved.
In this article, we’ll explore the pros and cons of selling a tenanted property, legal considerations, how to communicate with your tenant, and why appointing a trusted agency for this process helps.
Selling a Tenanted Flat or House: What It Means
First, let’s define what we mean by a tenanted property. This is a property that you own and rent out to a tenant currently. If you decide to sell the property, the tenant is still under a rental agreement and has the right to remain in the property until the end of the lease term. As the landlord, you have the right to sell the property, but you must follow certain legal requirements and communicate with your tenant throughout the process.
Pros and Cons of Selling a Home With Renters
There are both pros and cons to selling a home with tenants. On the one hand, having a tenant in place means you have rental income coming in until the property sells. This can be helpful if you’re in a financial pinch or are looking to sell promptly. On the other hand, having a tenant in place can also make it more difficult to show the property to potential buyers and make necessary repairs.
Legal Considerations When Selling a Tenanted Flat
When selling a flat with tenants, there are legal considerations you must keep in mind. First and foremost, you must honour the terms of the lease agreement. This means you cannot end the lease early just because you want to sell the property.
Communicating with Your Tenant: What You Need to Know
Clear communication is key when selling with tenants. You must be transparent with your tenant about your plans to sell the property and what it means for them. Start by giving them proper notice before showing the property to potential buyers. This will give them time to prepare and make alternative living arrangements if necessary.
Finding the Right Buyer for Your Tenanted Home
When selling a tenanted flat or house, it’s important to find the right buyer. You want someone who is willing to honour the terms of the lease agreement and work with your tenant throughout the selling process. Consider working with an estate agent like Cairn who have relevant industry experience in the sector. Cairn can help you find buyers who are willing to work with your tenant and ensure a smooth transition.
Completing the Sale: What Happens to the Tenant?
Once the sale is complete, the new owner must honour the terms of the lease agreement. This means the tenant has the right to remain in the property until the end of the lease term. The new owner may choose to renew the lease or use the property for something else once the rental agreement expires.
Selling a Tenanted Property – Final Thoughts
Selling a tenanted home requires extra planning and communication, but it’s certainly possible to do so successfully with the right agency. If you’re considering selling a tenanted flat, get in touch with Cairn’s dedicated team of property professionals to learn more.
Explore more key information on our tenanted properties page here.
Cairn also specialise in selling tenanted flats, if you would like to discuss investment opportunities, please do get in touch with our investment team here.