Selling Your Buy-to-Let in Cardiff with Sitting Tenants: A Landlord's Guide

Are you a landlord in Cardiff considering selling your investment property, even with tenants currently in residence? Many landlords believe they must wait until a tenancy agreement ends, but that's not always the case. Selling a property with sitting tenants in Cardiff can be a strategic move, particularly appealing to other investors.

At Red Key, your local Cardiff property experts, we're here to help you navigate the process. We'll explore the advantages and disadvantages of selling your buy-to-let in Cardiff with a sitting tenant, empowering you to make an informed decision.

What Exactly is a Sitting Tenant in Cardiff?

In the context of selling your property, a 'sitting tenant' in Cardiff refers to a tenant who holds a fixed-term tenancy agreement at the time you decide to sell. Crucially, their right to occupy the property continues until their fixed term expires, even after the sale of the property.

The Advantages of Selling Your Cardiff Rental Property with a Sitting Tenant

1. Highly Attractive to Other Cardiff Landlords: While some landlords might be hesitant about selling a property with existing tenants, it's often a significant draw for other landlords looking to expand their Cardiff property portfolio. For these buyers, acquiring a property with a sitting tenant means:

   • No need to market the property for rent themselves.

   • Immediate rental income from day one, avoiding costly void periods.

   • A seamless transition into property ownership with a ready-made income stream.

2. Maintain Rental Income & Avoid Voids in Cardiff: The property sales process can take several months. If your Cardiff rental property were empty during this time, you'd face extended periods without income. A key benefit of selling with a sitting tenant is that you continue to receive rent payments throughout the sales process, ensuring a consistent income stream right up to completion. This is a crucial financial advantage for landlords in Cardiff.

3. Reduced Security Risks for Your Cardiff Investment: Empty properties, especially those on the market, can be vulnerable to break-ins or vandalism. While security systems can help, having a sitting tenant living in your Cardiff property as normal significantly reduces this risk, providing peace of mind during the sales period.

The Considerations of Selling Your Cardiff Rental Property with a Sitting Tenant

1. Limited Target Market in Cardiff: While it's possible to sell a property with sitting tenants to homeowners in Cardiff, your primary and most receptive market will typically be other landlords or property investors. This narrows your buyer pool, but it's important to remember that for the right buyer (another investor), a tenanted property is often highly desirable.

2. Potential for Lower Offers from Homeowners: If a homeowner in Cardiff is interested in your tenanted property, they will need to understand and follow the legal eviction process before they can move in. This can be time-consuming and involve additional administrative work. Consequently, homeowners may seek to negotiate a lower asking price to compensate for this inconvenience.

3. Increased Administration for Cardiff Landlords: Selling with sitting tenants does involve some additional administrative steps. While working with an experienced letting agent like Red Key will significantly simplify this, you will need to:

   • Provide the buyer with all relevant documentation, including Right to Rent documents, original tenancy agreements, and up-to-date gas and electrical safety certificates for Cardiff properties.

   • Legally transfer the tenants' security deposit to the new buyer.

   • Ensure compliance with the Renting Homes (Wales) Act 2016 during the transfer of ownership.

Get Expert Advice for Selling Your Cardiff Rental Property

Navigating the sale of a tenanted property requires specific knowledge of landlord and tenant law in Wales and the Cardiff property market. At Red Key, we are your dedicated local property experts, with extensive experience in both Cardiff and Newport.

If you're a landlord seeking expert advice on selling your property with a sitting tenant in Cardiff, our friendly team is ready to answer all your questions and guide you through a smooth, compliant, and successful sale.

Contact Red Key, your trusted Cardiff Lettings and Sales Specialists, today! Call us on 02920 090690 or email hello@redkeylets.co.uk to discuss your specific situation.