Guide to selling a rental property

Selling a rental property involves more than simply putting it on the market. Whether you’re selling a rental property with tenants or an empty buy-to-let, there’s plenty for landlords to think about before, during, and after the sale.

• Tax – Buy-to-let properties don’t qualify for the same tax exemptions as a main home. Landlords selling a rental property may need to pay Capital Gains Tax on any profit made.
• Finances – Check whether there’s an outstanding mortgage balance and whether repayment charges apply if you’re selling a rental property before your mortgage term ends. It may also be worth reviewing the different types of landlord insurance available, particularly if you’re insuring a portfolio of rental properties and only selling one.
• Tenancy agreement – Review your tenancy agreement before you sell a rental property. The agreement may affect when you are able to complete the sale, what notice you need to give your tenant, and whether any obligations continue throughout the sales process.

Selling a rental property with tenants or a vacant property generally follows a similar process. This checklist aims to help landlords prepare before they sell a rental property.

• Notify your mortgage provider – Let your lender know of your intention to sell and request a settlement figure or the remaining balance.
• Value the property – Getting a professional valuation may help you understand how much you could sell the property for, the profit you may make, and how much tax you could pay when selling a rental property.
• Check the tenancy agreement – Review the tenancy agreement for any clauses relating to selling a rental property with a tenant and consider whether any existing agreements could affect the sale.
• Prepare legal documents – Gather documents such as a valid Landlord Gas Safety Record, an Electrical Installation Condition Report, and an Energy Performance Certificate (EPC). It’s also worth checking what your landlord insurance covers before selling a rental property in case your policy needs updating.
• Sell with tenants in situ – Landlords often ask: “Can you sell a rental property with sitting tenants?” The answer is yes, but you’ll need to serve the correct notice (see the section below on the Renters’ Rights Act). This applies whether you’re selling a single let or a House in Multiple Occupation(HMO).
• Prepare the property for sale – Make sure the property is presented well before selling a rental property. If tenants are still living there, communicate clearly and minimise disruption. If you’re selling a rental property with sitting tenants and marketing mainly to other buy-to-let landlords, it might help to have all mandatory rental documents in place, including the EPC, gas safety certificate, and electrical safety certificate.
• Consider an estate agent -There’s no legal requirement to use an estate agent, though many landlords choose to. An agent who specialises in rental property sales may be a suitable option.
• Arrange viewings – Give tenants proper notice ahead of any viewings and communicate timings clearly.

The Renters’ Rights Act has changed the process for selling a rental property with tenants in the UK. Understanding these changes may help landlords plan the sale while remaining compliant with current legislation.

Tenants now benefit from a 12-month protected period at the start of a tenancy, during which landlords cannot evict them to sell or move into the property. Where landlords do use these grounds, they’ll need to give tenants 4 months’ notice, allowing more time to find a new home, reducing the risk of homelessness.

The Renters’ Rights Act prevents landlords from marketing or re-letting a property for 12 months after using these grounds. Shared owners can still use the selling ground (Ground 1A), with an exception if they are able to show they made a genuine attempt to sell the property.
It’s also worth noting that landlords are no longer able to serve a Section 21 notice to evict tenants to sell a rental property. The government abolished Section 21 notices on 1st May 2026.

If you’re looking to sell a rental property and make a profit, or “gain,” you may need to pay Capital Gains Tax on it. This applies when selling a rental property in the UK that isn’t your main home, including:

• Buy-to-let properties
• Business premises
• Land
• Inherited property

Working out how much Capital Gains Tax you might owe when selling a rental property may depend on several factors, including your income tax band and any allowable expenses when selling a rental property, such as stamp duty, solicitors’ fees, and estate agent fees. You generally need to report and pay any tax due to HMRC within 60 days of completion. Specialist tax advice aims to help you understand your individual position.

Buying a rental propertyand then selling it on for a profit may be a lucrative business. However, it’s important that when selling your rental property, you understand you may need to pay Capital Gains Tax on the gain.

The tax-free allowance for the amount of profit an individual may make in a tax year from selling a buy-to-let property is £3,000. Any profit above this, HMRC may charge you 18% or 24%, depending on your income tax band. If you make a loss, or a profit under £3,000, you should not have to pay any tax.

There are several legal steps to follow when selling a rental property, including providing the potential buyer with an up-to-date EPC. Since 1st April 2020, landlords may only grant new tenancies for properties that meet a minimum EPC rating of E, and this applies to all existing tenancies too.

Other documents to provide the buyer with include a gas safety certificate, an electrical safety certificate, and the property title deeds, which may also be required. If your property is a leasehold, you’ll also need to supply a Leasehold Information Pack, including details about the management of the property. The freeholder or managing agent should usually provide this information.

If the landlord is selling a rental property with a tenant still living in the property, they should follow the correct notice periods set out under the Renters’ Rights Act, rather than relying on previous, now abolished, Section 21 procedures.

When selling a rental property, many landlords selling a rental property in the UK choose to sell through an estate agent, particularly one with experience of the rental market, as they may be able to help navigate tenant-related matters and valuations. An agency may typically arrange professional photography of the property, inside and out, and write up a description to highlight its key selling points. Bear in mind that estate agents usually charge fees, often set as a percentage of the sale price.

Private selling is another way to sell a rental property and could reduce agent fees, though it may require more time and effort from the landlord to manage viewings, negotiations, and paperwork. This route may work well if you already know someone interested in making an offer. If you choose to list your own property, it’s worth:

• Highlighting the good points about the area, such as transport links, schools, a nearby hospital, or local amenities.
• Listing the key selling points of the property itself, such as a garden, kitchen, or spare room.
• Being accurate in the listing, since exaggeration is usually easy for viewers to spot in person.

Another option is selling at auction. You may wish to set a reserve price to help prevent buyers from purchasing the property for less than expected. The winning bidder should complete the purchase to avoid losing their deposit.

Please note that these frequently asked questions are not a substitute for the policy wording. For full terms and conditions, please see the policy documentation.

You may need to pay Capital Gains Tax on any profit made when selling a rental property, as buy-to-let properties don’t qualify for the same exemptions as a main home.

Under the Renters’ Rights Act, landlords are generally required to give tenants 4 months’ notice when selling a rental property with a tenant in situ.

An estate agent may be a suitable option, as they’re qualified and familiar with the sales process, so they may be able to help manage viewings and negotiations on your behalf.

No, it’s not possible to evict a tenant using a Section 21 notice, as this route has been abolished under the Renters’ Rights Act. Landlords should follow the correct notice procedures instead.

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area.

We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Just Landlords trading as Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission, or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.