Introduction
Selling a property can be a complex process, and it becomes even more intricate when tenants are still living in the property at the time of sale. For landlords, this scenario—known as selling with tenants in situ—can have both benefits and challenges. Understanding the legal requirements, the potential buyer pool, and how to navigate tenant relationships is key to ensuring a smooth transaction.
What Does Selling with Tenants in Situ Mean?
When a landlord sells a property with tenants in situ, it means the property is sold with the current tenancy agreement still in place. The tenants remain in the property and continue to pay rent to the new owner, who becomes their landlord once the sale is complete.
This arrangement is common among investors who prefer to purchase a property that is already generating rental income. It can also be appealing to landlords who wish to sell quickly without going through the process of evicting tenants first.
Benefits for the Seller
Selling with tenants in situ can offer several advantages. Firstly, it ensures continuous rental income right up to completion, which can be particularly important if there is a mortgage to cover. Secondly, it can make the property …