A property sale can be daunting for tenants. The sale of a tenanted property doesn't just involve the landlord and the buyer; it impacts the tenant's rights and living situation. This guide explains how landlords can maintain a positive relationship with tenants and adhere to legal obligations when looking to sell.

What Happens When a Landlord Sells

When you sell a property, the tenancy agreement automatically transfers to the new owner, who then assumes the landlord's responsibilities. A seamless transition means no disruption for tenants, preserving the terms of their existing agreements.

• You must inform tenants about the sale and provide the new landlord's details.

• The incoming landlord has two months post-purchase to relay their contact information to the tenants. This communication is crucial for continuity and ensures tenants know whom to address for rent and maintenance.

Failing to provide the new landlord's details can lead to legal complications. Until this information is shared, you remain liable for any tenancy agreement breaches. Non-compliance can lead to legal action against the new landlord, emphasising the importance of clear communication.

Arranging Viewings

While property inspections typically require 24-hour notice, viewings for sale do not automatically fall under this rule. You must consult the tenancy agreement for any clauses regarding viewings and negotiate viewing times that respect tenant privacy and convenience.

Rent and Deposits After Sale

The tenancy's terms, including the rent amount, remain unchanged after the sale. Any adjustments, like rent increases, must follow the established legal process, respecting the terms of your tenancy agreement. Additionally, your tenant’s deposit must stay protected in an approved scheme, seamlessly transferring responsibility to the new landlord.

Rent Increases, Arrears, and Deposits

For rent increases to be valid, they must adhere to the conditions set out in your tenancy agreement or follow a formal legal process. Assured shorthold tenants and regulated tenants have specific protections and procedures that landlords must follow to legally increase rent.

The protection of the tenant’s deposit continues unaffected by the sale. Both you and the incoming landlords have responsibilities to ensure the deposit's continuous protection, safeguarding your tenant’s rights to have their deposit returned at the end of their tenancy, subject to the property's condition and any unpaid rent.

Should there be outstanding rent arrears at the time of sale, your tenant’s debt transfers to the new landlord. They inherit the right to pursue any outstanding rent in line with the original tenancy agreement's terms.

Ending the Tenancy

Sometimes, a sale might prompt a landlord to end a tenancy. The procedures and notices required, such as serving a Section 21 notice for assured shorthold tenancies, depend on the tenancy type. Both tenants and landlords must understand these processes to ensure they're conducted fairly and legally.

For landlords seeking guidance or more information on property sales and tenancies, seek expert advice from AST Assistance. Ensuring you're informed can make all the difference in maintaining a positive renting experience during these changes. For more information about how we can help you manage your tenancies, contact our knowledgeable team on 01706 619954 or fill out our contact form.