Selling a house can be a stressful time and if you have tenants living in your property then things can get much more complicated. It doesn’t have to be, Howells Solicitors is here to help. Here are a few things you should consider when selling a property with tenants:
What Are Your Eviction Rights?
Although you are the owner of the property, you are not entitled to evict your tenants just because you’ve decided to sell up. You have two options:
1. Sell the property to another landlord with the tenants in situ.
OR
2. Serve notice on your tenants to vacate the property once the tenancy period comes to an end.
What Are Your Rights Regarding Property Viewings?
Your original tenancy agreement should have laid out your rights regarding property viewings, providing guidelines on showing your property to perspective buyers, while tenants still are living there. This should have been authorised and included in the agreement, which both parties signed, prior to the tenant moving in. If this was not included in the agreement then you are not entitled to show people round, and instead you must ask the tenants for permission to do so.
You should also provide your tenants with at least 24 hours’ notice when planning a viewing, ideally this should be delivered in writing. This will give them time to prepare, whether this is to clean and tidy the property, or to simply make plans to vacate it during the planned visit.
What Happens Once the Property is Sold?
Once the property is sold, the new owner will assume the position of landlord for the rest of the agreed tenancy term. The new owner is not entitled to evict the tenants just because they’re the new landlords. The tenancy agreement will still stand, although the landlords name will now be different.
For this reason it is a good idea to have a new agreement signed as soon as possible if the new owner wants the tenant to remain. The new owner should also write a formal letter to the tenant to explain that they are the new landlord and how payment of rent should be altered.
The new landlord must also contact the Deposit Protection Service in order for the older landlord to transfer the deposit. The deposit status should be ‘active’ for this action to be completed and once done, the details should be retained.
Tenancy protection has been mandatory in England and Wales since 2007, and failing to protect a tenant’s deposit by transference could result in major penalties, such as the inability to regain possession of the property or a court order to pay the tenant up to three times the original amount, as well as costs.
Do you have landlord or tenancy law questions? Then speak to one of our experienced solicitors today by calling 0808 178 2773. We have specialist solicitors who deal with issues related to selling property with tenants every day, so let us help you and get in touch today.
