Hi there, does anyone have any experience of selling a rental property whilst the tenant is still in there? I was thinking I could reduce the rent if the tenant showed prospective buyers around. How could this work?
I am just weighing up my options as may have to sell. Any advice appreciated. Thank you.
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Is the tenant leaving once the property is sold, or is the property on the market with the tenant in-situ? Have you had a discussion with the tenant about this at all? If you have a good relationship with them, then they may be open to allowing viewings, but they are allowed to refuse. You can offer to minimise any disruption by doing multiple viewings in one session. I would not ask the tenant to show them around though, I would recommend this is done by the landlord or agent.
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Thank you. Yes the tenant would move once it’s sold. So would be looking for somewhere whilst it’s on the market. If they refused to allow viewings done by myself or agent I may have to give them the two months notice as we are on rolling now.
Yes unfortunately it can happen that the tenant refuses access (their legal right to quiet enjoyment). I have had that happen before, despite having a good relationship with the tenant; they were dealing with a lot of personal anxiety at the time even though they had been the one to give notice. It’s frustrating but there’s very little a LL can do apart from wait until the tenant vacates.
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The tenant may not be in a position to move out on demand and many sellers have lost their buyer in these circumstances. Some prospective buyers would also be put off buying a tenanted property because of the potential delays and may not offer.
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I have done the reverse (bought a property with a tenant in place). The tenant was happy to show me round but it was made clear to him that as a professional landlord I was not expecting them to move out.
That said, we did end up issuing a new AST on the same terms because the AST used by the former owner looked like Noddy’s First Contract 
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Hello, Usually a solicitor will not proceed to exchange of contracts unless it is clear that the buyer is assured of vacant possession. This means that most of the time the property has to be vacant before exchange. It follows that the tenant needs to move out BEFORE the property is sold. In such a case there is always a risk that they move out and the house does not sell. If you are lucky you might find a professional LL that will buy with the tenant in situ. Hard in the current market. While considering your options don’t forget that Auction with or without tenant is an option. Tenant in situ properties often sell for a discount - it used to be around 10 - 12%. Have you asked the tenant if they wish to buy the property? Good Luck
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This has been my experience. Conveyancers won’t take the risk of completion without VP. Specialist solicitor might though.
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