This may be more important for certain types of landlords. Sim Sekhon, the group chief executive of Propoly and Legal For Landlords, said selling in this way “could become particularly popular for so-called ‘accidental landlords’ – older investors who are looking to retire, or highly leveraged buy-to-let owners.
“For any landlords who suddenly find themselves in need of a quick sale, it might provide a valuable lifeline.”
Finally, while there are risks for fellow landlords buying with tenants in situ, the fact that they’ll be earning rental income immediately can be attractive.
Greg Tsuman, of Martyn Gerrard Estate Agents, added: “If the tenancy is already in place and managed correctly, rental income will start from day one of completion. It makes it far easier to accurately calculate the rental yield of a property.”
What are the downsides?
The main issue you’ll need to grapple with when selling a tenanted property is finding a buyer.
Mr Sekhon said: “Without being able to sell to owner-occupiers or first-timers, you’re left with only fellow landlords or investors. This is the biggest obstacle for a selling landlord.”
Moreover, not all these individuals will be keen.
Mr Sekhon added: “Some landlords will be wary of inheriting any tenants or agreements that they themselves have not been able to fully vet.”
With options few and far between, this can affect factors such as the price, the speed of sale and how much room there is for negotiation.
Mr Norris said: “You are restricted to a much smaller pool of buyers, and as such, are likely to sell for a much lower price than if the property were vacant.”
