Selling your house to a tenant is possible if you decide you no longer want to rent out the property. Provided your tenant has the funds to pay or get a mortgage, many landlords choose to sell to tenants to cut down on the time it takes to sell a rental.
In this article, we’ll explain how landlords can sell a rental property to a tenant and the steps you need to take.
How to Sell Your Rental Property to a Tenant
1. Get a Valuation
Before selling your property to a tenant, get a valuation of the property to determine what the resale price is. Speaking to an estate agent in the local area is the best way to get an accurate idea of how much you could sell your property to your tenant for.
2. Check Fees
If you already work with a letting agent, check your contract agreement for any fees you may have to pay when selling the property to a tenant. Not all letting agents charge a fee, but some do – particularly if they introduced you to the tenant and hence played a part in arranging the sale.
3. Speak to an Estate Agent
While estate agents are known for marketing your property, they can help with other matters relating to a sale, too. Just because you won’t need to market your property when selling to a tenant, there are other benefits to bringing an estate agent on board.
Working with an estate agent to sell your home to a tenant can also mean they:
- Undertake a valuation of the property
- Support with negotiations for the final sale price
- Check the tenant has the funds to pay
- Liaise with solicitors and mortgage advisors to help progress the sale
- Manage liaison between you as the seller and the tenants as the buyer
- Keep you informed during the selling process
4. Instruct a Solicitor
Just like the sale of any property, you want to work with a high-quality solicitor. When selling your property to a tenant, you ideally want to find a conveyancer that has experience in this particular kind of sale. Ask your estate agent for a recommendation if you need help finding a good solicitor.
5. Serve Notice on the Rental Agreement
Naturally, when selling your property to a tenant, you need to bring the rental agreement to an end. Depending on the terms of your agreement, it may be better for your tenant to serve notice rather than the landlord since the notice period may be shorter. When selling your house to a tenant, many landlords serve notice and agree to exchange simultaneously, so that completion can be in 1-2 months’ time.
Need an Estate Agent in Torbay ?
If you’re selling your Torbay property to a tenant, Ridgewater Sales and Lettings are your local property experts. Get in touch with us today to book a valuation of your property and talk through how we can help make selling to a tenant as smooth as possible.
Give us a call on 01803 525100 or email us at neil@ridgewater.co.uk to talk to one of our friendly agents now.