Selling a Tenanted Property – Fast, Easy and for the Best Price

Transcript

In today’s video, I’ll show you exactly how to sell a buy-to-let property for the strongest possible result – sharing what’s working for landlords right now, plus insights from over 20 years of hands-on experience selling properties and operating in the sector.

Let’s get into it…

I’m Ruban Selvanayagam, co-director at Property Solvers alongside my business partner, James Durr. 

James has been a landlord since around 2003 and I started in 2006 and it’s fair to say we’ve both been through plenty of ups and downs in the buy-to-let world, including credit crunch, Brexit and the pandemic. But I can honestly say – we’ve never seen a more challenging climate for landlords than what we have right now.

“The reasons? To begin with, Section 24 tax changes have stripped away most mortgage interest relief, significantly reducing profits for landlords with personally owned properties. Then you’ve got local authority licensing schemes adding admin and costs, tougher EPC requirements on the horizon, and the prospect of longer notice periods and more restrictions on gaining possession through the Renters’ Rights Bill. 

Add in rising maintenance + refurb costs, insurance premiums, and interest rates – it’s somewhat easy to understand why quite a few clients we speak to are cashing in completely or downsizing their portfolios.

Let’s be clear – this isn’t just a blip. Research from Savills shows that buy-to-let properties are being sold five times faster than investors are buying them, signalling a significant shift in the market. 

Data from consultancy TwentyEA backs this up – in Q1 2025, 15.6% of all new instructions were previously rented homes, up sharply from 9.8% in Q1 2024. Out of 451,000 new instructions in that quarter, well over 70,000 were ex-rentals. Some are calling it a landlord exodus – and in many ways, they’re right.

For James and myself, we’ve sold parts of our portfolios over the last 10 years or so, mainly for tax and restructuring purposes. We’re still landlords, but when the numbers stop stacking up, we’ve reassessed. 

For us, that means keeping the stronger, better-performing properties and selling off anything that’s high-maintenance, low-yielding, or is just no longer a good fit for buy-to-let.

Now, despite all the seeming negativity, there are still plenty of buyers looking for rental properties that are priced sensibly.  Selling a tenanted property has its challenges – but with the right approach, you can keep the process smooth, avoid setbacks and still achieve a price you’re happy with.

So let’s map out how to sell fast, stay compliant and keep more of the capital gains from your rental properties.

Step 1 – Decide Who You’re Selling To

When you’re selling a tenanted property, the first decision you have to make is whether you want to sell with the tenant in situ – or vacant?

Selling with the tenants staying put can make a lot of sense in certain scenarios. It mainly appeals to other landlords and investors, and the big advantage is you keep earning rent right up to the point of completion. It’s ideal if you’ve got reliable, long-term tenants paying a fair rent, because it gives the buyer immediate income from day one.

The flip side is that your buyer pool usually ends up being smaller, and investors will usually be more price-conscious. Most will focus heavily on the gross and net yields the property is generating and take a much more commercial view of the purchase. 

We’ve also worked with landlord sellers with regulated tenants and, in those cases, the property has to be sold with the tenant paying a low rent even though the property is worth a decent sum of money, which makes things trickier still.

Selling vacant – on the other hand – opens the door to owner-occupiers, who are often willing to pay more. Therefore, more competition for the property can mean a higher sale price. But there’s a process to follow – you’ll need to give notice, follow the correct legal steps, and appreciate that you may lose rental income during the marketing and sale period. And if you’re selling through an estate agent, that period could easily stretch to six months or more, assuming there are no fall-throughs.

A happy compromise can be to sell with vacant possession – that is to allow the tenants to stay until close to completion. That can make viewings and marketing a bit challenging, but it sometimes works well for both sides.

We’ve had cases where selling with tenants in situ was clearly the best move – particularly when they were on long-term assured shorthold tenancies and paying above-average rent. But, in most cases, we’re advising clients to get vacant possession first, because the uplift in sale price more often than not outweighs the cost of the void period. Ultimately, the way you proceed here will depend on your goals and timeframes as a seller as well as your tenants’ willingness to cooperate.

Step 2 – Get the Legal Side Right

If you’re selling with tenants in place, during the conveyancing process, you’ll need to hand over the original tenancy agreement, proof of deposit protection, gas safety, EPC certificates, electrical safety or EICR records and any licensing documents. 

It’s therefore well worth having this all in place well before you start the sales process, as missing documents can create delays and even spook buyers.

Step 3 – Work With the Tenant

By keeping the property tidy, allowing flexible viewings and providing reassurance to prospective buyers, a cooperative tenant can help you sell faster and for more.

We’ve had sales where tenants have even glowing references to buyers and that kind of goodwill makes a huge difference. On the other hand, if a tenant feels blindsided or resentful, it can make viewings awkward and slow down the whole process.

If you’re selling vacant, make sure any Section 21 or Section 8 notices are served correctly – and keep proof of service. I can’t stress this enough: get it wrong and you could lose months. We’ve seen deals collapse because a seller thought they’d served a valid notice, but they’d missed a simple compliance step and everything goes back to square one. 

And remember, the rules around possession are under constant review, so keep an eye on ongoing legislative changes in the rental sector.

Step 4 – Present the Property Well

First impressions count, no matter if the property is rented or vacant. 

If selling with tenants, explain how viewings will work, give plenty of notice, and maybe even offer a rent discount or gift voucher as a goodwill gesture for keeping the place tidy. Happy tenants are more likely to cooperate and even help influence buyers’ decisions.

If selling vacant, a quick spruce-up – like a lick of paint, freshened carpets, tidied garden – can work wonders.  We’ve sold plenty of tenanted properties where a simple deep clean and minor fixes added serious appeal – and helped us negotiate better offers.

Step 5 – Choose the Right Sales Route

When it comes to selling, you’ve got three main routes – and each has its pros and cons.

Going through an estate agent, or what’s called a private treaty sale, opens up the property to the widest possible market. This often translates to a higher price, but it’s a slower process and – as I mentioned before – there’s always the risk of fall-throughs – particularly if the buyer needs a mortgage or is part of a chain.

Selling at auction can be a great option both if you’ve got tenants in place or if selling with vacant possession. Buyers know exactly what they’re getting, and once the hammer falls, contracts are legally binding. It can also work well if certain compliance documents are missing – as long as buyers are told upfront.

These days, we’re generally suggesting a reserve, or minimum price, of around 85 to 90% of the true market value. And as auctioneers, our job is always to get you the highest price we can – driving competition between bidders and presenting the property in the best possible light.

Then there’s the direct cash sale. This is the fastest and most certain option, with completion possible in as little as 7 days. The price will be lower, but for landlords who need speed or absolute certainty, it can be worth it.  Through our own cash sale service here at Property Solvers, there are no legal fees or estate agency costs as you’re selling directly to us.

Here at Property Solvers, we’ll walk sellers through all three routes. It’s never one-size-fits-all, and we’ll always be honest if a different approach is likely to get you more money.

Step 6 – Get the Pricing Right

Once you’ve chosen your route, the next key move is to position the property’s price strategically at the right level. This isn’t about plucking a number out of the air – it’s about basing it on solid market evidence.

Start by looking at recent sold prices for similar properties in the immediate area. Then, check what’s currently on the market and how long those listings have been up alongside the ones that are sold subject to contract and under offer. For tenanted property sales, you’ll also want to see what comparable rental yields investors are paying for in your location.  You’ll often then be able to see how the benchmarks are different relative to the owner-occupier market.

At Property Solvers, we combine this with real-time demand data to set a range that’s competitive but still reflects the property’s true value. A well-pitched asking or reserve price will grab attention, create competition and get you the result you want without the sale dragging on unnecessarily.

If you want a clear, data-backed view of what your property could sell for right now – whether tenanted or vacant – drop me an email at ruban@propertysolvers.co.uk and I’ll be happy to send you a free, no-obligation house valuation report.

Step 7 – Highlight the Investment and Development Opportunity

If your prospective buyer is an investor, you’re not just selling a property – you’re selling a business opportunity. Make it easy for them to see the numbers by having prepared some key data points including rental history, yield calculations, details of recent upgrades, and any scope to increase the rent in line with the market.

Go beyond just the single buy to let side of things. Is there development potential? Could the property be extended, split into multiple units such as an HMO, or converted into a different use class under permitted development rights? Maybe there’s space for a loft conversion, or the ability to add an extra bedroom to the side or rear of the property.

Investors think in terms of upside. If you can show them there’s more value to be unlocked, you’re giving them a reason to stretch that bit higher on the price – and in competitive situations, that’s exactly what you want.

Whether marketing to investors or owner-occupiers, present the property’s story in a way that highlights its strengths, addresses potential concerns upfront, and positions it as a solid purchase.

Step 8 – Know Your Prospective Buyer’s Funding Position

When you’re selling a tenanted property, understanding your buyer’s funding is crucial. If they’re buying with cash (through a private cash buying company or at auction for example), the process is generally faster, simpler, and far less likely to collapse. However, you’re probably going to have to compromise on price.

If they need a mortgage, things can get more complicated – especially if the property’s value is heavily tied to its rental income or if there are any quirks with the tenancy.

Some lenders won’t touch certain tenancy types, and even with standard ASTs, there can be stricter criteria. For example, if the rent doesn’t comfortably cover the mortgage repayments, or if the surveyor sees other potential underwriting risks, things can get stalled or even fall through.

By knowing your buyer’s funding position early on – and ideally having proof of funds or a mortgage agreement in principle – you can avoid wasting time on deals that were never going to complete in the first place. Indeed, given the choice, we generally advise sellers to prioritise buyers using cash or, at the very least, those initially funding through bridging or other forms of short-term finance.

Step 9 – Negotiate Win-Win Terms

If you’re not happy with the offers you’re receiving, the answer isn’t always to walk away – sometimes it’s about finding creative ways to bridge the gap. For example, you might agree on a delayed completion, giving the buyer more time to arrange funding or sell another property. Often, that extra breathing space is enough for them to meet your price.

Another option – though less secure – is an option agreement. Here, the buyer pays you an agreed fee for the right (but not the obligation) to purchase the property at a set price within a fixed timeframe. This can suit buyers who need time to secure planning permission, raise funds, or sort out other arrangements. For you as the seller, it means receiving an upfront fee with the potential of a full sale later – but you also carry the risk that the buyer may walk away and only the option fee is left on the table.

Another approach is seller finance – where you effectively lend part of the purchase price to the buyer and they repay you over time, usually with interest. This can sometimes help secure a deal if the buyer can’t get full funding from a bank straight away. For the seller, the potential upside is earning a steady income stream and possibly a higher overall return. But it also comes with clear risks: your capital is tied up, you’re exposed if the buyer defaults, and enforcing repayment can be complicated and costly.

Whichever route you choose, work with a reputable solicitor who’s experienced in these types of deals. The right legal advice will protect your position and ensure everything is legally watertight.

Step 10 – Plan for Tax on Your Gains

When you sell a buy-to-let property, the tax bill can take a serious bite out of your profits – and many landlords don’t see it coming.

For individual landlords, this usually falls under Capital Gains Tax. You can sometimes soften the blow by timing your sale strategically – for example, spreading transactions over two tax years to double your annual allowance. If you’ve lived in the property before renting it out, you may qualify for Private Residence Relief. And if your spouse both owners’ allowances can be used.

This is where a good accountant is worth their weight in gold. For instance, they’ll know exactly what you can and can’t offset – from stamp duty paid on purchase, estate agent or auctioneer fees in addition to legal and survey costs, through to genuine capital improvements like a new kitchen, an extension, or replacing a roof. What you can’t claim is everyday maintenance – things like redecorating or fixing a boiler – because those would have already have been offset against rental income. The golden rule is to keep detailed records and receipts.

If you hold the property in a corporate structure such as an SPV or in a partnership, the rules are somewhat different. Here, corporation or partnership tax rules apply, and the reliefs and allowances available could have a major impact on your overall liability. Again, I’d strongly advise you to consult with a qualified tax adviser to make sure you’re making the most of what’s available and staying fully compliant with the relevant tax legislation.

One last thought: the difference between a smooth, profitable sale and a stressful undersell often comes down to planning. Take the time to get the legal side right, work constructively with your tenant if they’re in place, and choose the sales route that matches your situation. Do that, and you’ll be in a far stronger position to walk away with a result you’re happy with.

And if your goal is simply to get the property sold fast and move on, speak to us here at Property Solvers – we can guide you through your quickest, most profitable options.

I’d also be delighted to run off a free house valuation report which has a range of useful information to help you make a better decision regarding any property you’re looking to sell.  My email again is ruban@propertysolvers.co.uk.

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