OpenRent Community

Buying a property with sitting tenants

We are looking for another property to add to our portfolio and the estate agents keep offering us properties with sitting tenants.

Has anyone bought properties with tenants and am I right in being cautious?

Steve

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i bought a property 22 years ago with a sitting tenant He is still in it and always paid rent. No probs… how do you know if a tenant has paid and is not big trouble ? The landlord may lie in order to get rid of them

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And the agents are no better at telling the truth.

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totally agree. I always think ,if a place is a good money spinner why is it up for sale? I accept that they may be fed up , too old, too much paperwork ,But I would always want to pass on my work to my children

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Have a look at this as a starting point: https://www.vestaproperty.com/blog/10-questions-to-ask-when-buying-a-tenanted-property

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Thanks for that.
I can think of a few difficulties of my own too, so I am going to look for an empty property with no chain.

I’ve bought with sitting tenants & have had mostly horrible experiences. That said, I would do it again. Why? Well I always factor a nightmare scenario into the price I’m prepared to pay. Example. Last one had a high asking price of 80k. I passed over it. When it came down to 65k, I viewed it & offered 55k. I obviously wasn’t going win it. But the principal of always offering after a viewing has worked well in the past so why not. Turned out mine was the only offer & the landlord was desperate to sell up the last apartment of his portfolio. I paid the 55k & had the nightmares I imagined. But I still got a bargain property, albeit with hassle, but it was well worth it. After dealing with 3 tenants that had just been passed keys to, I now have it back on my terms. Sounds awful but the value in equity was well worth the hassle. Not having competition changes the price dramatically. Factor in at least a year of lost rent, dip the price a little more & there you have the true value of the property.

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Good idea. I now will re-consider my options. Thank you!

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