BUYING WITH A TENANT IN SITU

Landlords may sell their property with tenants in situ, for reasons such as:

-          They want to sell quickly

-          The tenancy is within a fixed term

-          They don’t wish to evict long term tenants

Benefits of buying with a sitting tenant

-          Good chance you’ll be able to buy the property below it’s true market value

-          You can inherit a good tenant who will continue to pay a rental income

-          You’ll start receiving revenue from the day of ownership

-          You can avoid immediate outlay that usually comes with getting a property ready to rent, assuming the property is legally compliant

Key steps to take before purchasing a property with tenants in situ.

1.      Find out why the landlord is selling, your solicitor will carry out checks on the tenant and tenancy, but get as much information as possible!

2.      Meet the tenants, you’ll be able to get a feel for what they are like and their future plans on staying in the property or vacating.

3.      Check the property is legally let, does the property have a valid EPC, smoke and carbon alarms, gas safety and eicr certifications, was it let unfurnished or furnished, is any furniture compliant with fire regulations, has the tenant got a copy of the how to rent guide, is the deposit lodged in a government approved scheme, these are also things your solicitor should help you certify.

4.      Have an appropriate survey carried out on the property, to check the maintenance standards of the property, how long it’s been rented for since it last had repair works carried out.

5.      Use an experienced solicitor, the property will not be sold with vacant possession, so the purchase contract will need to be tailored, including extract checks that need to be made such as proof of rental payments, referencing the tenants, so make sure you have chosen a conveyancer that can assist with this.

6.      Decide who will manage the tenancy after completion, do you require help from an experienced property manager to keep the tenancy running smoothly, Right Home Management is here to assist you on your journey as a buy to let investor!