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How to Buy & Sell Property with a Sitting Tenant

Originally published at: How to Buy & Sell Property with a Sitting Tenant | OpenRent Landlord Hub

Landlords often evict their tenants before putting the house on the market. They assume this is the fastest route to a successful sale because it is what potential buyers want.  But landlords should seriously consider the alternative: selling the property with the tenant in situ. A good sitting tenant can be a significant asset for…

I’m in the process of purchasing a property with a tenant in situ. The current agreement is for a fully furnished let but I want to change it to unfurnished. The seller is coming to an agreement about the furnishings directly with the tenant. The current tenancy is periodic.
I would like to offer the tenant a new 1 year AST. What is the best way of going about this please?

You should be aware that there is no compulsion on the part of the tenant to sign a new AST and they could insist that you continue to honour the terms of the agreement you will inherit.

If they do agree, just prepare all new paperwork (AST and all other prescribed documents) and all parties sign them. The new tenancy, (as long as its with the same named people as the existing tenancy) will just replace the old one.