My Landlord is Selling My Rented Home - Should I be Worried?

The prospect of your home being sold can be an unsettling one – but you needn’t worry. 

If your landlord (or letting agent) has told you that your home is going to be sold, and the tenancy taken over by a new landlord, this means that (at least in most cases) not a huge amount will change for you. 

However, it’s important to know where you stand, and exactly what to expect when you hear the news that your landlord is selling up. 

Here at Portolio, we specialise in the sale of tenanted property, and making the process as seamless as possible for both landlords and tenants – which means making sure you’re just as informed about what’s going on. 

Below, we’re going to talk about the process involved when your landlord is selling your rented home, and what happens to the tenancy agreement – as well as your deposit. 

How will the sale affect you? 

Any time a property goes up for sale, it’s only natural that some level of access is needed in order for the sale to go ahead; for example, arranging for the home report survey, marketing photos, or to show potential buyers around. 

Any good estate agent who specialises in the sale of tenanted property will take a very considerate approach, and some of the above visits can be combined to minimise disruption for you. 

After all, it’s your home (and you’ll also have the option to purchase it before it goes to market). 

Exactly how the sale is handled will vary depending on the agent, but to give you a better idea of how we handle things here at Portolio, we’ve outlined our own process, below.

What will the process look like for you? 

Clear communication is key when numerous parties are working together for the best outcome; in this case, enabling you to stay in your home whilst a sale price is agreed for your landlord. 

Here’s what a typical process looks like for us when dealing with tenants. 

Step 1: Explaining the process

Once your landlord has told you about his intentions to sell, we’ll send you a copy of our tenant’s guide, explaining what to expect and answer any queries you may have – that part’s especially important. 

Step 2: Arranging access

We’ll work with you to agree a time that’s convenient to arrange a home report survey and marketing photos. For the photos, we help you ensure your home is prepared and that nothing private or personal is on display. 

Step 3: Marketing the property

The next step is to market the property online – we would also market through our extensive list of property investors (again, this may vary depending on the estate agent your landlord uses). 

TIP: You may find it reassuring to learn that vacant possession is not an option when a landlord is selling tenanted property through our channels. 

Step 4: Viewings 

Once there is interest, it’s time to arrange some accompanied viewings. These would always be with your permission, and approval, as well as being in line with your tenancy agreement – it will also give you the opportunity to speak to prospective landlords.

TIP: The addition of virtual tours means that physical viewings can be kept to a minimum, and only for serious buyers.  

Step 5: The sale 

A sale is agreed and completed. Congratulations! You have a new landlord. Your tenancy rights remain the same, and you may or may not have a new letting agent (depending on your new landlord’s preference). 

NOTE: Timescales after an offer acceptance may vary. For cash purchases, this process could take as little as four weeks – however, if your new landlord is using lending to purchase, it could take around 8 – 10 weeks to complete. 

What happens to your tenancy agreement? 

I’d say nine times out of 10, nothing at all. 

If you decide to stay on in your home, your tenancy agreement will simply change hands to the new landlord, who will be bound by the tenancy agreement in the same way as the old one was. 

You will still retain your legal rights, and the same laws and rules will be applied to the new tenancy; so you can feel safe and secure in the place you and your family call home.

However, there are still some cases where a new tenancy agreement is required by law; for example, when a mortgage lender or insurance provider stipulates it’s a condition of the new agreement. We’ve gone into more detail on this via our blog on the subject.

What about my deposit? 

Your deposit still belongs to you, and should be protected by the Tenancy Deposit Protection Scheme Scotland. However, it must be updated to reflect your new landlord – this is something your letting agent (or landlord) should be in touch about. 

Here’s what Carol Bradburn, Customer Relations Manager at SafeDeposits Scotland, had to say: 

“The transfer of a property and therefore the deposit from one landlord to another is not uncommon, and we have simple steps in place to accommodate such a movement. 

“The change in ownership does not alter the position that the deposit must be protected so it is important to ensure protection is updated early in proceedings so that the new landlord does not find themselves in breach of legislation.”

Advice from the property pros 

I know the prospect of your home being sold, and having a new landlord you don’t know, can be daunting, as it feels out of your control. 

However, the fact that your landlord is selling your rented home in a way that means you’ll be able to stay in your home, should be reassuring. 

Any good estate agent specialising in tenanted property sales will know the importance of communicating with you in a clear, efficient manner, whilst answering any questions you may have about the sale. 

In summary… 

You don’t have to worry. If your landlord is selling your rented home so that someone else can take over the tenancy, it can actually be quite a simple process (as outlined above) and nothing should change for you. 

A good specialist estate agent will always attempt to achieve the best possible outcome of a fair sale for your landlord, whilst you get to stay in your home. 

Has your landlord told you they’re looking to sell? If so, do they know selling tenanted property is an option? We’d be happy to speak to them to find out if we could help. 

We’re always here to provide free, no-strings advice. You can also direct them to the free guide we’ve linked to below.

Written by Chris Wood (MD & Founder) and Ross MacDonald (Director of Sales & Co-founder).

Get in touch on 0333 344 2855 or email us at [email protected]