What about selling with sitting tenants?
It may be more complicated to sell your buy-to-let property if it currently has tenants in it. However, it’s still possible, and is preferred by many sellers as you can continue to receive rental income while the property is on the market.
If you’re selling an occupied property, you’ll need to explain this to your tenants as soon as possible. Tell them why you’re selling and reassure them that their tenancy agreement still stands.
When selling a tenanted property, there’s a chance you’ll be selling to another landlord.
In this instance, be prepared for the buyer to carefully examine the terms of the existing tenancy, and the sitting tenants themselves – they may, for example, want to carry out their own referencing.
If you want to sell a tenanted property unoccupied, you’ll need to make sure you give tenants a legally compliant Section 21 eviction notice.
Buy-to-let: is now a good time to sell a house?
Whether it’s the right time to sell your rental property will depend on your personal circumstances. For example, you may need to raise money for another business interest or maybe you no longer want to be a landlord.
When it comes to selling a property, external factors you’ll need to consider include:
If average property prices in your area are healthy, it’s likely the value of your rental property has increased. And if there’s high tenant demand for rentals and a lack of supply, it’s likely other investors could be looking to buy property in your area.
If, based on the above, it doesn’t feel like a good time to sell, it could be worth holding on to your property for a bit longer to make sure you maximise your return on investment.
Where are landlords looking to sell?
Of those who said they were planning to sell a property in 2024, the most popular UK regions were the South East, Wales, and the South West.
The graphic below shows a regional breakdown of the most popular selling locations among buy-to-let investors:
