Tenants can have a major impact on the value of a house.
This could be beneficial if they keep it in excellent condition and move out before the sale.
But sometimes, landlords are forced to sell with a tenant still living there.
This could be a choice, or their hand may be forced.
Either way, it’s helpful to know what the effects may be.
What is a sitting tenant?
A sitting tenant (or tenant in situ) is a renter who still lives in a house when it’s sold.
On all listings advertising the property sale, that’ll be described as a ‘sitting tenant’.
There are several reasons a house may have a sitting tenant. Two of the main ones are:
- The owner doesn’t want to evict them and prefers to respect their wishes
- The owner can’t evict them because of the contract.
How long before a tenant becomes a sitting tenant?
A tenant becomes a ‘sitting tenant’ when the landlord decides to sell the house.
Once it’s listed on the market, the tenant is henceforth described as ‘sitting’. This lasts for as long as the house sale takes.
If someone new buys the house, they may describe the in-situ tenants as sitting.
This is often because they don’t want them there but can’t do anything about it.
This usually means there’s a contract that must be adhered to.
How long is a sitting tenant allowed to stay?
The tenancy agreement decides this. They can stay until it runs out if it’s a fixed-term tenancy. It’s then up to the landlord whether to evict them.
If it’s an indefinite tenancy agreement, they can live there as long as they wish.
These are less common in recent years, though. Public sector housing sees this type of agreement the most.
When am I allowed to file for eviction for a sitting tenant?
Your tenancy agreement will describe the conditions under which you can do this.
Speak to a solicitor for personalised guidance if you’re unclear. The type of tenancy agreement will also impact the answer.
You can usually evict your tenant once the rental agreement’s fixed period expires. Or if they break the terms of the contract in some way.
Common examples include:
- Failure to pay rent
- Antisocial behaviour
- Bringing pets into the house (when not allowed).
How long does it take to evict a sitting tenant?
This depends on several factors. It could happen within a few weeks if your sitting tenant is agreeable. But this is very rare.
In most cases, it can take at least 3 months. You’ll need to serve notice and give your tenant ‘reasonable time’ to vacate.
For example, a Section 21 eviction usually demands 2 months’ notice.
If the tenant refuses to leave, it can stretch for longer than 3 months.
You may need to go through the courts to get a possession order. A solicitor can help with this.
By the time everything’s processed and enforced, another few months could’ve passed.
How does a sitting tenant impact house value?
A sitting tenant makes your house far less valuable.
Most experts agree that it devalues property by at least 20%.
And around 30% or more is common when the circumstances are terrible.
If the tenants misbehave and are uncooperative, the value drop will be around 30%.
And if they’ve got assured tenancy, it may be 40% less valuable. Each potential buyer will have a different perspective on this.
That’s why homeowners try not to sell with a sitting tenant living there. But it’s not always possible to get them out first.
