Selling Properties with Tenants: What Investors Should Know

Are you an investor thinking about selling a property with tenants on a lease? It’s definitely possible and, in some cases, can even be an advantage. However, there are a few key factors to consider that can help you get the best outcome—whether your buyer is an investor or a potential owner-occupier.

1. Tenancies Continue Despite Ownership Changes

It’s a common misconception that when a property changes hands, the tenancy agreement can simply end. In reality, the tenancy agreement is protected under law, meaning that the lease stays in effect unless both parties agree otherwise. This can be advantageous if your buyer is another investor, as they’ll inherit the stability of an established tenant. However, if you’re aiming to attract owner-occupiers, you might consider listing the property closer to the lease’s end, giving tenants a chance to find alternative housing and making the property more appealing to a wider pool of buyers.

2. Tenant Rights to Terminate within the First 60 Days of a New Lease

If your property is listed for sale within the first 60 days of a new lease, tenants have the right to end the lease, which could affect the sale if they choose to leave. Additionally, if it can be shown that you had plans to sell prior to signing a new lease, the lease could also be terminated. Planning your sale strategically and being transparent with tenants can prevent disruptions and help maintain a smoother sales process.

3. Tenant Control over Photos and Open Houses

Tenants have the right to privacy and peaceful enjoyment of their home, which extends to how you market the property. Tenants can refuse internal photos and may limit open houses, so it’s essential to communicate with them to find a solution that respects their privacy while allowing prospective buyers to view the property. Excessive inspections can be seen as intrusive, so it’s best to work collaboratively with tenants to establish a schedule that suits everyone involved.

Marketing and Selling with a Tenant in Place

While it might seem simpler to sell a vacant property, selling with a tenant in place can have benefits, especially if you’re targeting investors looking for a reliable income stream from day one. At Blackbird and Finch, we’re experienced in navigating the complexities of selling tenanted properties. Our team will work with you and your tenants to ensure that the sale process is smooth, respectful, and efficient, keeping both buyers and tenants informed and comfortable.

If you’d like to learn more about selling your investment property with tenants, feel free to reach out to me. I’d be happy to answer any questions and help you through the process.

Peter Harvey
Sales Specialist
Blackbird and Finch
📞 04288 00078
✉️ [email protected]