While the fundamental legal process of selling your rental property to your tenant is the same as if you were selling to anyone else, there are a few extra considerations, things you need to know and steps you’ll have to take.
Bringing the rental agreement to an end
Landlords have to give at least two months’ notice to their tenant, in general, whereas a tenant paying rent monthly only has to give one. So the most straightforward way to bring the tenancy to an end is for both parties to agree to a month between exchange and completion, is for the tenant to give their month’s notice at the point of exchange.
What price should you sell for?
Establish a reasonable price as you would in any other situation: by asking two or three agents to appraise the property. Take their advice on the current market and what interest they would expect, because it may be the case that by selling the property on the open market you could achieve a higher sale price. Alternatively secure an independent valuation, based on the property’s condition via a RICs surveyor, qualified to do valuations.
At the same time, it’s important to be fair with your tenant. If you find that demand for your type of property is very high, you could propose marketing it for a number of weeks to gauge interest, but give your tenant first refusal.
