If you are a landlord thinking about selling, one of the biggest decisions is whether to sell with tenants in place or wait until the property is vacant. With the Renters’ Rights Act changes coming into force in May, this decision is more important than ever.
From May, Section 21 “no fault” evictions will be abolished. This means landlords will no longer be able to regain possession simply by serving notice. All tenancies will move onto rolling periodic agreements, giving tenants greater security and fewer reasons they can be asked to leave. If you want the property back, you will need to rely on specific legal grounds, such as selling the property, and follow a more structured process.
Selling with tenants in place can still work well in the right circumstances. For investor buyers, an existing tenant provides immediate rental income and removes any void period. With stronger tenant protections coming in, some buyers will see stable long term tenants as a positive. However, others may be more cautious, as taking on tenants now means less flexibility if they later want vacant possession.
Selling vacant usually opens the door to a wider range of buyers, including owner occupiers and developers. A vacant property is often easier to present, easier to view and can move through the sales process more quickly. The challenge is timing. If vacant possession is important, landlords need to plan ahead, as regaining possession after May is likely to take longer and require more careful compliance.
The right approach depends on your goals. If maximising buyer demand and speed is the priority, selling vacant is often the stronger option, provided you act early. If rental income and investor appeal matter more, selling with tenants in situ can still achieve a good result, particularly in strong rental areas.
With the law changing, early advice is key. Understanding your tenancy position and the local buyer market can make a significant difference to both price and timescale.