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If you’re a landlord planning to sell your property, have you considered earning rent while selling property in London? You should. It’s a smarter way to sell the property despite the unpredictable nature of the market.
Reports reveal that selling a property takes 17 to 34 weeks, from listing to handing the keys to the new owner. During that time, the property is left vacant, which is a huge waste of potential rental income.
If you don’t want to let your rental property sit idle while waiting for a prospective buyer, keep reading. This article will explain why renting is smarter and how you can maximise the earning potential of rental properties even as you decide to sell and arrange viewings.
Why Are Landlords Selling Their Properties?
According to reports, 17.4% of properties sold in January 2025 were previous rental properties. This is an increase from 11.7% in the same month last year. While the landlord selling a property isn’t unusual, the increase is worth noting.
The current state of the market is pushing some landlords to think it’s time to sell their rental property, even with tenants living in it.
What are the common reasons to sell a property?
Several factors in the property market seem to be working against landlords. The high mortgage rates and evolving letting regulations (e.g. Renters’ Rights Bill and abolishment of Section 21 Notice) and tax rules (e.g. Stamp Duty Land Tax) are among the leading reasons why a landlord sells.
Strict regulations from the Renters’ Rights Bill, in particular, require older properties to spend more to improve rental properties. Some landlords think it’s no longer financially beneficial to continue fixed-term tenancy agreements. Add to that the cost of regular maintenance and compliance, it’s just not worth it anymore.
Of course, we can’t rule out personal reasons. Some landlords are looking for an exit strategy because they’re nearing retirement. Some want to diversify their portfolio, so they’re selling properties to fund new investments. If the timing is right, you can benefit from capital appreciation and get a sizable return on investment.
Or it could just be because of stress that some landlords choose to give up assured shorthold tenancies.
Regardless of the reason why landlords are selling properties, one thing is certain. It’s smarter to earn rent while selling property in London.
Why Renting Is a Smart Way to Sell a London Property?
As more landlords sell their properties, the supply of rental units continues to go down even as the demand rises. According to reports, letting agents are expecting an increase in rental prices to follow. While this makes affordability an issue among tenants, it would mean a higher earning potential for landlords.
Since you have to wait a couple of months before your property is sold, why not take advantage of the looming rental price increase?
What are the benefits of renting a property while selling?
Let’s take a closer look at the pros and cons of earning rent while selling property in London.
- Steady rental income. Your earnings can be used to offset your mortgage payments and other costs associated with maintaining a property.
- Flexible letting. This means using different letting strategies to earn rental income. Obviously, you don’t want the property tied to a long assured shorthold tenancy agreement. Using short-term or mid-term letting as your strategy allows you to rent the property for a couple of days, weeks or months.
- Allow viewings. With the short stay, it’s easier for the estate agent to schedule and accommodate viewings from prospective buyers.
- Regular housekeeping and maintenance. With the frequent turnovers, you can also maintain the visual appeal of the property for sale. Regular housekeeping between bookings will keep the property clean and market-ready.
- Reduced vacancy losses. Your property won’t deteriorate because of negligence and being empty for extended periods.
- No need to sell with tenants in situ. This means selling with tenants currently living in the property, with the buyer being the new landlord.
While these benefits are appealing, you should also consider some of the cons. Managing a rental property requires time, effort and experience. If you don’t have the time to manage a rental property, it’s best to turn to an experienced property management company to deal with the day-to-day operations.
How to Maximise Your Rental Income While Selling
If you’ve chosen to rent your property while waiting for the sale to happen, make sure you have the right strategy to maximise its rental income potential. Partnering with a property management company is the ideal approach because they have the expertise to increase your property’s occupancy rates and rental revenue.
How do they do it? Here’s how you benefit from expert help.
- Market-ready presentation. Professional property managers will ensure your home is visually appealing to attract more guests and prospective buyers. They’ll maintain the premium standards so your property is always ready for the next booking or viewing.
- Proactive occupancy and pricing strategies. Property managers monitor the market and adjust their letting strategies to ensure maximum booking rates. This ensures your property is occupied while staying profitable and competitive.
- Stress-free property operations. Property managers take care of bookings, check-ins and check-outs, guest communications, housekeeping, maintenance and even compliance. They’ll remove you from the daily operations so you can enjoy a stress-free hosting experience. Their efficiency will make your guests enjoy their stay and encourage them to leave a positive review.
- Expert sales coordination. Property managers can schedule buyer viewings around bookings. This way, your sales timeline won’t be compromised even as the property continues to earn rental income.
Common Questions: Earning From Rent While Selling
Whether you want to make the most of your asset or offset renovations you did to increase your property’s selling price, it’s important to understand the rental process. Here are common questions people ask before deciding to earn rent while selling property in London.
How much rental income can you earn in London?
London is one of the top destinations in the world, so the demand for temporary accommodations (short and mid-term rentals) will always be high. The rental income you can earn will vary depending on the location, property size and letting strategy you’ll use.
But to give you an example of how much you can earn, take a look at some of City Relay’s partners. One partner earned more than £6,000 in one month (October 2024) and enjoyed an average nightly rate of £269. Another property owner enjoyed 95% occupancy and earned £50,000 after booking approximately 190 nights.
If your property is in a prime location, well-maintained and aesthetically appealing, you can expect a higher rental income.
What letting strategy won’t delay or complicate the selling process?
Since you want the property to be available for viewings, avoid assured shorthold tenancy agreements. Instead, choose short or mid-term letting strategies. This will give you flexibility to schedule buyer viewings without invading the tenant’s privacy. It also allows you to free the property in case you get an offer you can’t refuse.
Can you sell a property with a tenant?
There are circumstances wherein you can’t just sell your property. If you’re selling property with tenants, you need to give them an adequate notice period. If the tenancy agreement says they still have 2 months, you can’t accept offers yet. You’re bound to honor the assured shorthold tenancy agreement.
Of course, there is an option of selling with tenants in situ. This means the buyer will acquire the property, including the existing tenant agreement. If the buyer intends to use the property for rental purposes, this won’t be a problem for them. But if they meant to live in the property, you’ll have to discuss this with the tenant and decide how you can legally get them to end the tenancy agreement.
How can I make sure the property stays in good condition?
This is why short-term letting is the best strategy for property owners who want to earn rent while selling. This letting model includes professional cleaning between bookings. These can come with routine inspections that’ll help you identify potential maintenance issues. This will ensure your property stays in good condition even as you rent it to short-term guests.
Should you use a property management company?
While you can manage a rental property, getting an experienced property management company is more beneficial. They’ll take care of the daily operations, guest communications, staging, housekeeping and maintenance and even pricing strategy. They can also coordinate with your estate agent to schedule viewings.
If you want to enjoy a stress-free hosting experience, partner with a reputable property management company that specialises in short-term letting.
Selling Doesn’t Mean Vacating: Earn Rent First
Deciding to sell doesn’t always mean you have to keep your property empty for months on end. It’s smarter to earn rent while waiting for the right buyer to give you an offer.
If you’re not sure you can handle the hosting responsibilities while selling the property, don’t worry. Property management companies like City Relay can turn the waiting period into an income-generating opportunity.
Contact us and find out how City Relay can take care of your property while you focus on finding a buyer.
