Plenty of landlords reach the point where selling a tenanted property makes sense, maybe to release capital, shift investment strategy, or simplify their portfolio. Having tenants in place doesn’t complicate things as much as it changes the route. With a bit of planning and the right know-how, it’s entirely possible to sell smoothly and in some cases, even more efficiently.
Selling a property with tenants? Here’s what every seller should know – tenant rights, tenancy types, and how to keep your sale on track.
What is a sitting tenant?
A sitting tenant is someone who is living in the property under an existing tenancy agreement and remains there while the property is being sold. The new owner takes over the tenancy and becomes the tenant’s new landlord.
So, what does sitting tenant mean in practical terms? It means the buyer takes on both the tenant and the existing agreement, making it different from selling a vacant property. This setup is common in buy-to-let sales and can appeal to investors seeking immediate rental income.
Legal rights of sitting tenants
Understanding what rights sitting tenants have been essential before listing your property. A tenant’s rights don’t change just because you’re selling. They are protected under law, and their agreement continues unless formally ended through the correct legal process.
Here are a few key legal rights of sitting tenants:
- The right to remain in the property until the tenancy is lawfully terminated
- The right to quiet enjoyment, meaning they can’t be disturbed without notice
- The right to refuse viewings unless viewings are clearly permitted in the tenancy agreement
So, what are the rights of a sitting tenant? Simply put, they’re entitled to the same protections and notices as they were before the sale was on the table.
Related: Private tenants’ rights: Everything you need to know
Tenancy types and their impact on sale
The type of tenancy in place can affect how, and how easily, you sell a tenanted property. Here’s a breakdown of the most common types of tenancy:
- Assured Shorthold Tenancy Agreement (AST): The most common type in England, usually lasting 6–12 months. These are relatively straightforward to end with notice after the fixed term.
- Assured Tenancy: Often long-term and provides more protection for the tenant, making it harder to regain possession of the property.
- Fixed Term Tenancy Agreement: A tenancy with a fixed end date. You can sell during the term, but the buyer must honour the agreement.
- Short Assured Tenancy: Used in Scotland, similar to the AST but under Scottish legislation.
- Periodic Tenancy: This usually rolls on monthly after a fixed term ends and is easier to bring to a close with proper notice.
Before selling, it’s a good idea to review your tenancy documents, whether it’s an assured tenancy agreement, a shorthold assured tenancy, or another type, so you’re clear on your legal position.
Related: What is a lodger? Tenant vs lodger
Can you sell a property with tenants?
The short answer is yes. Whether you’re dealing with a short-term or long-term rental, there are no legal barriers to selling a home with renters living in it. Some landlords prefer to sell with tenants in place, especially when targeting other investors. Others may aim for vacant possession by giving notice and waiting for the tenancy to end before marketing the property.
However, the process will depend on your buyer, your timeline, and the type of tenancy agreement in place.
Pros and cons of selling with tenants
Every decision in property comes with trade-offs, and selling with tenants is no exception. Here’s a quick look at the potential benefits and drawbacks.
Advantages of selling tenanted property:
- You can continue receiving rental income until completion
- The property may appeal to other landlords looking for instant rental return
- You avoid the costs and delays of an empty property between tenancies
Things to consider:
- Some buyers, particularly owner-occupiers, may be put off by tenants in place
- Access for viewings can be more difficult
- If the tenancy is long-term or has special protections, it may limit your selling options
In some cases, particularly with an older assured tenancy, a sitting tenant may have additional rights that make repossession or renegotiation harder, something worth exploring early with a solicitor or letting agent.
Related: A complete guide to solicitors’ fess when selling you home
A balanced approach makes all the difference
Selling a property with tenants doesn’t need to be stressful or complicated. With clear communication, legal awareness, and the right support, it’s entirely possible to make the process work for everyone involved – yourself, your buyer, and your tenant.
Whether you’re considering selling now or just exploring your options, reviewing the tenancy type and understanding what are sitting tenants’ rights will help you avoid surprises and plan a smoother route to sale.
Thinking of selling your rental property?
If you’re weighing up whether to sell with tenants in place or aim for vacant possession, it helps to have guidance that fits your situation. At Whitegates, we’ve supported landlords at every stage of the journey, from valuations, through to completion.
We provide practical advice, tailored insights, and support when you need it. Get in touch with your local Whitegates branch to speak to a team that understands the lettings market and, how to sell successfully, with or without tenants.
