What is a tenanted sale?
A tenanted sale is the sale of a property with the tenants staying in place. The tenancy continues and the buyer becomes the landlord on completion, so tenants must be told who their new landlord is. Many investor buyers prefer tenanted properties because the rent continues from day one.
Read more in our guide: Selling a portfolio with tenants
Key facts at a glance
| Item | Detail |
|---|---|
| What happens to the tenancy | It continues unchanged; the buyer becomes the landlord on completion |
| Who the buyer usually is | A landlord or property investor |
| Notice to tenants | The new landlord must give written notice of their name and address within two months (Landlord and Tenant Act 1985, section 3) |
| Rent | Apportioned on the completion statement for the period of the month after completion |
| Deposits | Transferred to the buyer and re-protected where needed |
| Pricing | Based mainly on rent, yield and tenancy quality, often below vacant value |
How a Tenanted Sale Works
In a tenanted sale, also called selling with sitting tenants, the property is sold subject to the existing tenancy. Nothing changes for the tenant except who they pay rent to. The buyer takes over the tenancy agreement, the deposit and the landlord's legal obligations from the date of completion.
Since the Renters' Rights Act 2025 removed Section 21, tenanted sales have become the most common way for landlords to sell, because they avoid the four-month notice and the 12-month re-letting restriction that come with Ground 1A.
Tenanted Sale or Vacant Possession?
| Tenanted sale | Vacant possession | |
|---|---|---|
| Notice to tenant | None needed | Ground 1A: 4 months minimum |
| Rent during the sale | Continues to completion | Lost from when the tenant leaves |
| Buyers | Investors, often cash buyers | Owner-occupiers and investors |
| Sell a portfolio in one deal | Yes | Usually property by property |
| Price | Based on rent and yield, often a discount to vacant value | Full vacant market value |
| Risk if the sale fails | Tenant and rent still in place | Cannot re-let for 12 months after the notice ends |
The difference between tenanted and vacant value varies widely. It is often small for typical buy-to-let houses in strong rental areas and larger for family homes in owner-occupier areas, which is why we look at each property individually.
What Buyers Will Ask For
- a rent schedule showing each tenant, rent, payment history and arrears;
- tenancy agreements, written statements of terms and any rent increase notices;
- deposit certificates and prescribed information;
- gas safety certificates (annual), electrical installation condition reports (every five years) and EPCs;
- any HMO or selective licences;
- details of any disputes, notices or repairs reported by tenants.
A complete pack reduces the time spent in conveyancing and the scope for price renegotiation.
Keeping Tenants on Side
Tenants must allow reasonable access for valuations and surveys, with at least 24 hours' notice, but they do not have to agree to viewings beyond that. Most tenants are reassured to hear that their tenancy will continue and that they are not being asked to move. An off-market sale also avoids for-sale boards and public listings, which can unsettle tenants.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A tenanted sale is the sale of a property with the tenants staying in place. The tenancy continues and the buyer becomes the landlord on completion, so tenants must be told who their new landlord is. Many investor buyers prefer tenanted properties because the rent continues from day one.
Yes. The tenancy continues and the buyer becomes the landlord on completion, so the tenant does not have to leave.
No. You can sell a tenanted property without the tenant's consent, but you need to give reasonable notice for access and the new landlord must tell the tenant who they are.
Often it sells for less than with vacant possession, because only investors will buy it. The gap depends on the property, the rent and the local market, and is sometimes small.
The buyer, as the new landlord. The deposit is transferred to them as part of the sale.
Thinking About Selling Your Portfolio?
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