5 mistakes landlords make when selling with sitting tenants…and how to avoid them

If you’re considering selling a buy-to-let you own, you are not alone. Negative conditions, which will peak on 1st May 2026 when the majority of the Renters’ Rights Act is implemented, are forcing investors out in their thousands. To be precise, 93,000 are forecast to leave the rental market by the end of 2025, a figure published by Black & White Bridging.

The ease of which landlords can regain their properties will change when Section 21s are banned, making selling with sitting tenants a more appealing than ever. If not executed properly, however, landlords can damage the prospects of a sale and even devalue their buy-to-let.

Here are the top 5 mistakes landlords make when selling with tenants in situ…..and how to avoid them.

1. Problem: Not being honest with your tenants

Many landlords assume that because they are not disrupting the rental agreement, the tenants will be happy. Sadly not every renter will understand how a landlord-to-landlord sale works, so they might be angry and upset when they discover their home is being sold. Disgruntled tenants may take their frustration out on the property, or be less likely to accommodate visits from property professionals or prospective buyers.

Solution

Communicate early with tenants and make sure it’s in writing. The key information points should be:

• Their tenancy will seamlessly move over to the new landlord
• The agreement will not immediately change
• The rent will not increase overnight
• Their deposit will remain protected

2. Problem: Choosing the open market

Many landlords try to sell with sitting tenants on the open market as they think they’ll achieve the highest price this way. Sadly, there is a miniscule number of purchasers in the open market willing to buy a property with sitting tenants. This mismatch can lead to little to no interest, viewings and offers.

Solution

Engage with a company who specialises in landlord-to-landlord sales - either a direct cash buyer or a property auction. They will be used to marketing buy-to-lets with sitting tenants and can even use this aspect as a sales advantage.

3. Problem: ignoring the buy-to-let’s EPC rating

Landlords may feel comfortable with an E-rated EPC as it’s legally sound now but prospective investors will have one eye on the future. From 2028, a minimum EPC rating of C will apply to all new tenancies, then to all tenancies – new and existing - in 2030. As such, landlords will prioritise buying rentals where the EPC rating is already a C or above.

Solution

An investment in energy saving measures will broaden a buy-to-let’s appeal among other landlords. Properties that are currently rated E and D can usually achieve a better grade with some simple improvements, such as a wholesale switch over to LEDs light bulbs, an extra layer of insulation, double glazing and a new boiler.

4. Problem: assuming the condition of the property doesn’t matter

Just because there are sitting tenants, doesn’t mean the rest of the proposition can be lax. Potential landlord purchasers will want to invest in a property that doesn’t present problems from day one. They will have their beady eye on anything that will make the property non-compliant or troublesome in the future. If they spot issues, they could reject the property or make a low offer.

Solution

Make running repairs and maintenance a priority. Not only will it boost the value of the buy-to-let and make it more appealing to purchasers, the tenants will directly benefit.

5. Problem: not being able to prove full compliance

The best buy-to-lets have a watertight paper trail visible to prospective buyers. Missing elements are huge red flags as non-compliance will void any future eviction action, and leave the landlord exposed to fines and even prosecution.

Solution

Landlords need to get their compliance house in order before they sell. Proof of the following should be available from day one of the marketing:

• The signed tenancy agreement
• Referencing paperwork
• Leasehold/freehold details
• Land Registry details
• Evidence that all prescribed information has been served to the tenants
• Deposit protection service registration details
• Gas, water, fire & electrical safety certificates/testing
• Boiling & gas appliance servicing records
• Planning & building regulation approvals
• HMO licence, if required

Insurmountable problems?

Some tenancies and buy-to-lets have problems that can’t be solved – especially if the rental needs selling quickly. Open Property Group purchases buy-to-lets that are classed as problem properties – a simple solution for landlords under pressure. With us, the requirements are virtually zero:

• No need to fix or repair anything in the property
• No problem if the tenants are in rent arrears
• No issue if the property has a low EPC or a short lease
• No ‘for sale’ board or viewings required
• No problem if the relevant paperwork can’t be found
• No need to try the open market

Open Property Group’s average offer-to-completion timeframe is just 42 days, with exchange possible in 7 working days for those who need sales security.

We’d be pleased to discuss your property problems – contact us and we can provide a solution.