How to Sell a House With a Sitting Tenant in North Manchester & Rochdale  

Is selling a house with a sitting tenant more practical than selling a vacant property? If you’re planning to sell your North Manchester buy-to-let, be sure you’ve considered the ups and downs of both options.

Rental properties in Bury, Royton, Newhey or Littleborough can offer good value for landlords. Yet perhaps you’re pressured by rising costs in the current climate, or maybe you’re an accidental landlord who’s calling it a day. After all, 32% of Manchester properties are private rented, as per the 2021 Census, and behind every buy-to-let is a landlord with their own financial and personal priorities. 

Whatever your reasons, you essentially have two options: serve notice, or sell with tenants in situ. To find out more about what’s involved, read our guide to selling a property with a sitting tenant. 

Why sell a house with sitting tenants?  

You can sell a house with a sitting tenant, and there can be some financial and strategic advantages for landlords. For example: 

• Maintain a steady rental income during the selling process 
• The tenants won’t have to move out 
• No need to wait out the eviction notice period  
• Landlords may appreciate reliable, long-term tenants in situ 
• A new landlord could benefit from an immediate income 
• Property investors are usually ready to proceed 

When to avoid selling a house with tenants in situ  

However, there can also be disadvantages to selling a house with tenants in it. You should consider: 

• Selling a vacant property allows you to target residential buyers too 
• You need a cash buyer as most mortgage lenders require vacant possession 
• Narrower appeal can result in a lower selling price 
• More paperwork, primarily transferring the tenancy documents to the new landlord 

How to sell a house with a sitting tenant  

There’s more than one way of selling a house with sitting tenants. Each method reaches a slightly different audience and there and pros and cons to be aware of. 

Selling by auction 

Property auctions are a common route to sell tenanted properties. Contracts are exchanged quickly, and auctions attract buyers who won’t be fazed by sitting tenant. However, you will reach fewer buyers overall, but selling prices can be lower and auction fees higher than with a traditional estate agent.  

Selling with an estate agent 

If you sell the tenanted property with a good local estate agent, their market knowledge can be invaluable. For instance, they may already have contacts looking for a buy-to-let opportunity in Rochdale. Your property will also be listed on the agent’ website and property portals, reaching more potential buyers. 

Key considerations when selling tenanted property  

You can sell a house with a sitting tenant, but be mindful of their rights. It’s also beneficial to maintain a good relationship as your tenants may be happier to accommodate viewings. There are further practical considerations as well. 

1. Type of tenancy agreement  

Check the contact terms, as it may spell out your right to conduct property viewings. Otherwise, you will need to seek the tenants’ agreement as you go. 

2. Tenants’ Rights 

Your tenants’ right to quiet enjoyment is still protected. Observe the 24 hours’ notice period before gaining access, and remember they can request an alternative day or time. Landlords also have a duty to maintain the property as normal.  

3. Property Value 

Selling tenanted properties can lead to a lower selling price, sometimes 20% below your property’s potential market value. It’s a good idea to do the calculations to decide what you’re comfortable with. 

4. Renovation 

You could avoid renovating or redecorating if you sell to a property investor. Though, you will have to hand over the details of outstanding repairs, so the new landlord can pick up where you left off. 

5. Tenancy Documents 

You must transfer the tenancy agreement, evidence of your tenants’ right to rent as outlined on gov.uk, and gas and electrical safety certificates. Transfer the deposit to their new landlord too, along with full details of the approved tenancy deposit scheme that protects it.  

What options exist if I don’t want to sell with tenants in property?  

After fixed-term period of an assured shorthold tenancy agreement (AST) has passed, you can serve a Section 21 notice to evict your tenants with 2 months’ notice to sell with vacant possession. There are other options to consider too. For example, the tenants may ask if they can buy the property, or you could rent to short term tenants until you sell.  

Ultimately, selling a property with a sitting tenant is a decision that only you can make, but talking to a local property expert can help you to make an informed choice. If you want to discuss selling your property in Bamford, Oldham or Chadderton, our knowledgeable team can help. Contact Cowell Norford today. 

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