A growing number of UK landlords are discovering that selling a rental property does not necessarily require vacant possession.
Traditionally, landlords planning to sell a buy to let property have been faced with a difficult choice. Either serve notice on the tenant and wait for the property to become vacant, or attempt to sell the property on the open market while tenants are still living there – something that can make the process significantly more complicated.
Serving notice can take time and may lead to months of delay before the property can even be marketed. During that period landlords may face void periods, lost rental income and uncertainty around when the property will actually be ready to sell.
At the same time, selling with tenants still in place can also present challenges. Many owner-occupier buyers prefer vacant possession, meaning tenanted properties sometimes attract fewer buyers on the open market.
However, an increasing number of landlords are now exploring alternative routes to market that allow them to sell properties with tenants remaining in place.
In some cases, landlords are even selling properties directly to investor buyers or property companies, avoiding the uncertainty of traditional chains and lengthy marketing periods.
A common scenario many landlords now face
Consider a typical situation.
A landlord owns a rental property that has been let for several years. The tenant pays rent reliably and the property has performed well as an investment.
However, the landlord has now decided it may be time to sell.
Perhaps they want to release capital tied up in the property. Property values in many areas have increased significantly over the past decade, meaning some landlords now hold substantial equity.
In other cases landlords simply want to reduce their exposure to property investments or step away from the responsibilities of managing tenants and maintaining buildings.
Whatever the reason, once the decision to sell has been made many landlords assume there are only two options available.
The first option is to serve notice on the tenant and wait until the property becomes vacant before selling.
The second option is to try selling the property on the open market with the tenant still living there — something that can make arranging viewings difficult and sometimes create uncertainty for tenants.
But landlords are increasingly discovering that there is a third option.
Investor demand for rental properties
Despite the challenges some landlords are facing, demand from property investors remains strong.
Professional investors and property companies continue to look for rental properties across the UK, particularly those that already have tenants in place and generate immediate rental income.
For investors, properties with tenants already living in them can actually be attractive. The rental income is already established and the property is already operating as a rental investment.
Because of this demand, many rental properties are now being sold off market, directly to investors rather than through traditional estate agency listings.
These transactions can sometimes move significantly faster than conventional property sales because they avoid long property chains and repeated viewings.
Selling with tenants in place
For landlords who want to avoid disrupting tenants, selling to an investor buyer can provide a practical solution.
In many cases the tenancy simply continues after the sale completes. The tenant remains in the property and continues paying rent under the existing tenancy agreement.
From the landlord’s perspective this means there is no need to serve notice or create uncertainty for tenants while the sale progresses.
For tenants it can provide stability, as they are able to remain in the property without needing to move.
For investors it means acquiring a property that is already producing rental income.
As a result, this type of transaction can benefit all parties involved.
Cash purchases and investor buyers
Companies such as Bettermove operate within this space by working with landlords who want to sell rental properties.
In some situations Bettermove is able to purchase properties directly for cash, allowing the sale to complete quickly and without the uncertainty of chains.
Because the buyer is already in place, the process can often move forward more efficiently than a traditional open market sale.
Importantly, properties can often be sold with tenants remaining in place, meaning landlords do not need to serve notice and tenants are not forced to leave their home.
Where a direct purchase is not appropriate, the property can instead be introduced to Bettermove’s network of investor buyers, many of whom are actively seeking rental properties across the UK.
This can apply to:
- a single buy to let property
- multiple rental units
- or an entire landlord portfolio
Properties may also be sold tenanted or vacant, depending on the landlord’s situation.
This flexibility allows landlords to explore different routes depending on their priorities.
Another situation landlords increasingly face
Not every landlord owns a large portfolio of rental properties.
In fact, a significant proportion of landlords across the UK own just one or two rental properties. Many originally purchased these properties as long-term investments, while others became landlords accidentally after moving home and deciding to rent out their previous property.
For these landlords, the decision to sell can often feel more complicated than it should be.
They may assume the only realistic option is to list the property with a traditional estate agent and wait for a buyer to emerge.
But when tenants are living in the property, the process can quickly become more difficult.
Viewings may be harder to organise, tenants may feel uncomfortable about the sale, and owner occupier buyers may prefer properties that are vacant.
As a result, many landlords believe they must first serve notice and wait for the property to become empty.
However, where the buyer is another landlord or investor, the presence of a tenant can actually make the property more attractive, not less.
Selling vacant properties to investor buyers
While many landlords sell with tenants still in place, this approach is not limited to tenanted properties.
Vacant rental properties can also be attractive to investor buyers.
Some investors look specifically for vacant properties because they plan to refurbish or improve them before re-letting.
Others simply want properties that can be quickly re-let once the purchase has completed.
This means landlords who already have vacant properties may also be able to explore alternative selling routes rather than waiting for traditional buyers.
Portfolio sales are also becoming more common
Another trend emerging in the buy-to-let sector is landlords selling multiple properties at the same time.
In some cases this may involve a small portfolio of two or three properties. In other situations landlords with larger portfolios may choose to sell several properties together.
Portfolio sales can be complicated through traditional estate agency routes because each property must typically be marketed separately.
However, when dealing with investor buyers, portfolios can sometimes be sold more efficiently.
Investors who specialise in rental property are often interested in acquiring several properties within a single transaction.
For landlords looking to simplify their investments or exit the market entirely, this can provide a practical solution.
Why some landlords choose this route
Landlords exploring these alternative routes to market often highlight several advantages.
These may include:
- potential cash purchase
- the ability to sell with tenants remaining in place
- faster completion compared with traditional sales
- no estate agency fees in many cases
- the option to market the property to investor buyers
- greater discretion than open market listings
For landlords who prioritise speed, certainty or privacy, these factors can make the process significantly easier.
A shifting landlord market
While some landlords are choosing to sell, demand from investors continues to remain strong.
This means that in many cases rental properties are simply changing ownership within the sector rather than leaving the rental market entirely.
Properties that were once owned by individual landlords are increasingly being purchased by professional investors or property companies who continue to rent them to tenants.
For landlords considering their next move, understanding the different routes to market can help ensure they make an informed decision.
Thinking about selling a rental property?
Bettermove works with landlords across the UK who are considering selling rental properties.
This may involve a direct cash purchase or introducing the property to a network of investor buyers actively seeking rental homes.
Properties can often be sold with tenants remaining in place, avoiding disruption for tenants and removing the need to serve notice.
Learn more about selling a rental property
