Curious about the process used when selling a tenanted property?
If you’re considering selling your tenanted property, it may feel a little daunting, and there’s a heck of a lot to think about.
You may have only just stumbled across the fact that it’s possible to sell your property with the tenants still inside (as not everyone’s aware this is even an option), and want to know a little more about how it works first.
As the only estate agent in Scotland specialising in open market tenanted property sales, we feel it’s important to get this information out there, so more people can be aware of some of the great benefits that come with selling a tenanted property.
So, if you want to know more about the process for selling a tenanted property, read on.
What’s the process for selling a tenanted property?
If you’re thinking that selling your property with the tenants still living there could be the best option for you, we’ve outlined the typical process you can expect to go through with a tenanted property sales specialist (or estate agent specialising in tenanted property sales).
As a caveat, no two estate agents will be exactly the same. We’ve based this on our own process we go through with landlords in Scotland, so you can get a better understanding of what to expect, from getting in touch with an estate agent, right through to completion of sale.
Step 1: Making contact with a tenanted sales specialist
You might do this via an online form on their website, by emailing them, or simply giving them a call. You may even want to contact more than one estate agent or specialist, so you can be sure you’re making the right choice. Always trust your gut.
Once you’ve contacted them, they should be happy to arrange a time to speak with you (via phone, Zoom, or even in-person if possible) so they can understand your goals and give you some free, impartial advice to determine if selling with sitting tenants is definitely the right option for you.
If it sounds like it is, they’ll then conduct a full appraisal of your property that looks into the value and potential sale price of your property. This should take just a few days, and they’ll then send you the results (preferably by email, but always check this).
Step 2: Communicating with your tenant
You may wish to communicate with your tenant directly first, or through your letting agent (if applicable) to let them know what’s happening. Once you’ve done this, your tenanted sales specialist should be happy to take over and ensure your tenants are at ease.
TIP: We personally have some helpful guidance on this that we’re happy to pass on to anyone who needs it.
They’ll be able to answer any questions and allay any fears your tenants may have, as well as providing them with a helpful information pack to ensure they know exactly what’s going to happen next. This step is absolutely vital in getting your tenants onboard.
From here, your chosen tenanted sales specialist should be able to easily sort out access arrangements for the home report survey, and marketing photos – something that requires a little bit of extra care when selling a tenanted property.
Step 3: Marketing your tenanted property
There are numerous ways a tenanted sales specialist can market your property. They can usually do this online via their website, as well as on well-known and trusted sites such as Zoopla, Rightmove, On the Market and Prime Location – alongside various social media channels.
One of the things that separates a tenanted property sales specialist, like us, from a regular estate agent, is the work they do to build a huge list of active property investors, who are looking for good property investments. It’s sort of like our not-so-secret weapon!
Step 4: Negotiating the best price
When it comes to negotiating the best price for your tenanted property, the right estate agent can really come into their own, using their industry knowledge, experience and savvy tactics to ensure you get the best price.
Depending on the property and location, the advertised sale price is usually a Fixed Price, that is often above survey value. But, this isn’t true in every case.
TIP: Read our recent case study to learn more about how we can help you get the best price for your tenanted property.
Your chosen tenanted sales specialist should also be happy to take a proactive approach to ensure the missives are started with your solicitor.
Step 5: Getting over the finish line
This is the part where you’ll have to sit tight whilst the process plays out. Any good estate agent who specialises in tenanted property sales should be able to guide you through the process and do everything in their power to ensure the sale is completed smoothly and you receive the funds.
At this stage, a tenanted property sales specialist should be keeping things on track, dealing with any issues that crop up, and keeping you (and your tenants, and your letting agent – if applicable) in the loop at all times.
This is mainly because selling a tenanted property is a bit different to selling the traditional way, and taking an active role is required to ensure things go smoothly.
What about the fees?
You may notice we haven’t mentioned fees yet; that’s because you shouldn’t have to pay anything upfront to your chosen tenanted property sales specialist.
They may charge a nominal marketing fee (£204 inc. VAT) if they’re going to be taking photos and marketing online, but again this is usually only charged once a sale has been agreed.
Once the property is sold and full settlement takes place, only then should you expect to pay a fee. Typically, you’ll be looking at around 1.8% inc. VAT – with no other hidden extra charges whatsoever. Simple, eh?
TIP: Be very wary of any traps like hidden additional charges, and ensure you won’t have to pay anything extra for the likes of marketing photos, brochures and viewings.
Advice from the tenanted property pros
Always take the time to research all your options. When speaking to an estate agent who specialises in tenanted property sales, make a note of any questions you have. Finally, always trust your gut. Remember, they should listen to your goals, before determining if this is the right solution for you.
TIP: It’s also a good idea to go online and check out their Google reviews. These will tell you a lot about other people’s experiences and whether they’re able to get the right results.
Selling a property with the tenants still inside isn’t right for everyone, but there are a lot of reasons why landlords find it attractive. Think this may be the best option for you? Ask your chosen estate agent about their process – it should be similar to the one above.
Thanks for reading. We hope this blog has been of some use to you when researching the process for selling a tenanted property. Bear in mind, not all tenanted property sales specialists will be the same. Saying that, the above is a good guideline to look for.
Remember, the right estate agent should make you feel at ease, and be happy to answer any questions you may have. You should also never feel under any pressure. We understand this is a huge, life-changing decision for a lot of people, and it’s important to take your time.
Have any questions, or feel you’d like to learn more about selling a tenanted property? Why not get in touch – we’d love to hear from you!
Written by Ross MacDonald, Dir of Sales & Co-founder of Portolio
Get in touch on 07388 361 564 or email to firstname.lastname@example.org