The landlord dilemma: sell first or evict first?

Since Section 21 was abolished on 1 May this year, landlords have been searching for answers.

When Section 21 was available, the standard route many landlords took to sell rental property was to get vacant possession first, then put the property on the market.

In many cases, that advice made perfect sense. A vacant property can usually be sold to a larger pool of buyers, which often means a higher sale price.

And crucially, landlords were not committing to running vacant property for 12+ months if they discovered they couldn’t sell their property because they could relet it if necessary.

But now that using Section 8 to evict tenants in order to sell brings stronger compliance requirements, longer possession timescales and increased scrutiny of eviction notices, many landlords are rethinking the process that makes most sense.

Because once the tenant leaves, the rent stops while the mortgage, insurance, maintenance costs and other expenses continue but you will not be able to do anything about it for 12 months from the date the tenant leaves.

If you market, re-let or even list a property on a short-term site like Airbnb during those 12 months, it is a criminal offence or carries an automatic civil penalty up to £40,000 and councils now have greater enforcement responsibilities under the Renters’ Rights Act. 

At Landlord Sales Agency, we help landlords sell tenanted properties to investors and owner-occupiers. If vacant possession is needed, we organise it and 𝘀𝗲𝗹𝗹𝗲𝗿𝘀 𝘁𝘆𝗽𝗶𝗰𝗮𝗹𝗹𝘆 𝗿𝗲𝗰𝗲𝗶𝘃𝗲 𝗿𝗲𝗻𝘁 𝗿𝗶𝗴𝗵𝘁 𝘂𝗽 𝘁𝗼 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻.

The hidden cost of seeking possession first

Most landlords focus on the potential increase in sale price that vacant possession might achieve. Fewer stop to calculate the costs involved in getting there.

There are legal costs, compliance checks, notice periods, potential delays and the ongoing cost of owning a property that may eventually sit empty for months while a sale is agreed and completed. Most importantly, the rent stops and will stay stopped for as long as it takes to prepare the property for sale, find a buyer and complete.

A property producing £900 per month generates £10,800 a year. Even a relatively short void period can quickly eat into any additional money achieved by selling with vacant possession.

The reality is that landlords should not compare the sale price of a tenanted property against the sale price of a vacant property. They should compare the amount of money left in their bank account at the end of the process.

Selling first keeps your options open

By marketing a property first, landlords can discover what type of buyer is actually interested before making a decision about possession and whether it’s worth selling with vacant possession.

Some buyers actively want tenants in place.

Professional landlords, portfolio investors and cash buyers often prefer an income-producing asset from day one.

If that buyer can be found, the landlord may be able to achieve their goal without serving a notice at all.

• The tenant remains in place
• The rent continues to be paid
• The sale progresses.

Everyone wins.

What if the buyer wants vacant possession?

If a buyer requires vacant possession, the landlord can still pursue that route.

Nothing has been lost. The difference is that the landlord is making that decision with a buyer already waiting at the end of the process rather than hoping one appears after possession has been obtained.

Instead of taking on the cost, risk and uncertainty of an eviction before a sale is agreed, they know exactly why they are doing it and what the likely reward will be.

Why isn’t everyone selling this way?

If selling first can preserve rental income, keep options open and potentially avoid eviction altogether, why doesn’t every landlord do it?

The answer is simple: selling tenanted property requires a very different approach from selling a vacant home.

Firstly, tenants need to be engaged with the process. If they feel threatened, ignored or uncertain about what happens next, cooperation can quickly disappear. Some tenants become reluctant to allow viewings, others stop communicating altogether, and in some cases, landlords find themselves dealing with rent arrears or unexpected early departures.

Secondly, attracting the right buyers can be difficult. The market value of a tenanted property is typically 5 – 10% less than the value of the same property with vacant possession, yet many sellers continue to market tenanted properties as though they were vacant. The result is often a lack of interest from investors and confusion among owner-occupiers.

The challenge of ensuring buyers are committed. Finding a buyer before arranging vacant possession doesn’t make as much sense if buyers can withdraw from the sale at any time.

Buyers want tenancy information and a compliant business when purchasing rental businesses. Buyers want confidence that the tenancy is properly documented, compliance requirements have been met and the income stream they’re purchasing is secure.

Arranging vacant possession, if required. Ground 1A introduces new risks, restrictions and timescales that simply didn’t exist under Section 21.

In short, selling first makes perfect sense in principle. Making it work in practice requires experience, planning and the right strategy.

How Landlord Sales Agency solves the problem

At Landlord Sales Agency, we start by bringing tenants into the conversation rather than treating them as an obstacle. As an independent third party, tenants recognise that our role is to find a solution that works for everyone, not simply force them out of their home.

We also market properties very differently from traditional estate agents. We have a database of 30,000 buyers, including cash buyers, investors, incoming landlords, and chain-free owner-occupiers, as well as people we reach through sales portals like Rightmove and Zoopla and through our local agent network.

By creating competition between different buyer types and using an auction type sale to find the highest offer, landlords can see exactly what each sector of the market is prepared to pay before deciding whether vacant possession is worth pursuing.

Successful buyers pay a non-refundable reservation deposit as soon as their offer is accepted. Because that deposit is deducted from the purchase price on completion, it is not an additional cost to the buyer, but it does provide a powerful incentive to remain committed to the transaction.

Where a property is being sold as an investment, we ensure the tenancy information, compliance certificates and supporting documentation are collected and organised before solicitors become involved. This helps avoid unnecessary delays, reduces legal costs and gives buyers confidence that they are purchasing a properly documented investment.

And when vacant possession is genuinely required, our first priority is to avoid lengthy court proceedings wherever possible. By working with tenants, providing relocation support and negotiating voluntary move-out arrangements, we can often achieve vacant possession significantly faster and with far less stress than relying entirely on the court process.

There is more than one way to exit the PRS

The real dilemma isn’t whether to sell with tenants in place or sell with vacant possession. The real dilemma is making that decision before you know what the market is prepared to offer.

At Landlord Sales Agency, we help landlords explore both options at the same time. We market the property, engage with tenants, attract competing buyers and put the available opportunities in front of you. Only then do you decide whether selling with tenants in place or pursuing vacant possession delivers the best overall result.

No guesswork. No unnecessary risks. No commitment to an eviction process you may never need. And rent right up to completion.

Just informed decisions based on genuine buyer demand.

To find out what your property could be worth and what options are available, contact Landlord Sales Agency today.