As a property owner, you might find yourself in a situation where you want or need to sell your rental property.
This could be due to a variety of reasons like financial circumstances, property market conditions or a shift in your investment strategy.
However, selling a rental property comes with its own set of responsibilities and obligations, and the process is not as straightforward as selling a vacant house.
Giving notice to tenants
The first obligation is to inform your tenants. You are required to give your tenants notice before selling.
The notice period depends on the type of tenancy agreement.
Assured shorthold tenancies (ASTs), which are the most common type in the UK, require a minimum of two months’ notice. This is often done through a Section 21 notice.
Remember, landlords can not evict tenants without proper legal notice. It is important to be respectful of your tenant’s rights throughout the process.
Right to access
Although you have the right to show potential buyers around the property, you can not just walk in at any time.
You must give your tenants reasonable notice, usually at least 24 hours and arrange visits at convenient times.
It is also good practice to ensure your tenants feel comfortable during these visits. An example of this would be to keep the number of viewings to a minimum and ensure they are conducted as efficiently as possible.
Maintaining the tenant’s security deposit
As a landlord, it is your responsibility to ensure the tenant’s deposit is protected in a government-approved tenancy deposit scheme, even during the sale.
If a new landlord takes over, they will need to also protect the deposit and notify the tenant of the change.
Existing tenancy agreements
The sale of the property does not automatically end any existing tenancy agreement.
If the property is sold while tenants are still living in it, the new owner will have to take over the existing tenancy agreement, effectively stepping into the shoes of the old landlord.
Compliance with legal requirements
When selling a property, landlords need to ensure they comply with all legal requirements.
This includes providing an Energy Performance Certificate (EPC) to potential buyers and ensuring all gas and electrical equipment has been checked and certified by a registered engineer.
Additionally, the property must meet all health and safety regulations.
Informing your mortgage lender
If there is a mortgage on the property, you should inform your lender about your intent to sell.
Some mortgages have restrictions on selling and you may need the lender’s consent before proceeding with the sale.
Selling a rental property as a landlord involves significant responsibilities and legal obligations. Landlords should be clear on their rights and duties and consider seeking legal advice to ensure a smooth process.
If you need advice on selling your property as a landlord, get in touch today.