Offer conditions when buying property with tenants in situ

Landlord Discussion Property Investment
1

Hi all,

I’ve put in an offer on a property that has tenants in situ. If the offer gets accepted, am I allowed to ask for the following documents before instructing a solicitor:
Landlord licence, EPC certificate, Gas and electricity safety certificates, Tenant referencing report, Proof of rent payments for the past few months, Property inventory made at the start of the tenancy, Tenancy agreement, Any additional relevant documentation that you might think of…?

If there are any issues with the paperwork or the tenants, how easy is it to request that the property be sold with vacant possession?

I’ve been told the tenants are on a monthly rolling tenancy. How does a rent increase work in that situation?

Also, is there anything else I should be aware of when buying a place with tenants in situ?

Thanks!

2

you need all those documents. It can take a year to remove a tenant

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3

I’d want to know your motive for doing that before offering advice. To do that indicates that you are very keen on the property and that the care of people whose home you are planning to buy might be less important than possession of a financial asset. That would give me concern that things are going to work out.

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4

You should satisfy yourself that the tenancy has been compliant since it began so EPC, electrical safety certificates and all previous GSCs with no lapses would be the bare minimum. There may be a GDPR issue with asking for the tenants personal info if you are not compliant yourself.

A monthly rolling tenancy has no bearing on any rent increase as far as I am aware.

I would advise you to get some landlord training under your belt.

Good luck!

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5

You are buying a business and need to do full due diligence. I created the list below a couple of years ago, which would be in addition to the normal conveyancing questions. The RRB may add to it:

  1. When the tenant first moved in, which can determine the type of tenancy they have and restrictions
  2. All rent paid on time and in full
  3. Credit checks and affordability
  4. Any complaints about the tenant from the landlord or neighbours
  5. Whether the property has been well looked after
  6. The status of all people living at the property
  7. The current state of the property and any disrepair or breaches s11/HHSRS/Fitness for Habitation
  8. Whether its licensable and licensed and all T&Cs are complied with
  9. Any property upgrades required and likely cost
  10. Any gas in the property and the age/condition of the boiler
  11. Whether all required gas safety checks had been complied with
  12. The EICR report
  13. Whether its let furnished and whether the furniture is included in the purchase price and is fit for purpose
  14. Whether there is any tenant damage
  15. Whether there is a detailed inventory signed by the tenant with photographs of move-in condition
  16. A copy of the tenancy agreement and if not an AST, is it legally valid
  17. That there is no mesne tenant, eg rent-to-rent
  18. If leasehold, whether there is consent to let and the freeholder insures the building
  19. Whether there have been any complaints from tenants about neighbours
  20. Crime rates and demographics for the area
  21. Whether the tenant was served with all required GSCs, How to Rent booklet, EPC and EICR from the start of the tenancy
  22. Whether require smoke and CO alarms have been fitted and if other fire related requirements complied with
  23. If a deposit was taken, whether it was properly protected, PI properly served and any other requirements complied with
  24. Right to Rent check carried out
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6

Interesting question of what documents can be asked for in this situation. Any conveyancing experts care to comment?

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7

I have experience of buying a property with tenants in situ and can confirm that all the questions the previous poster has listed are legitimate questions that any good conveyancer would require evidence of. I am pretty confident that an estate agent would be happy to provide information relating to the legality of the tenancy to you as a potential buyer Pryor to conveyancing. It would show that you are serious if nothing else, although they may decide not to divulge the tenants personal info due to gdpr.

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8

Thank you all for these fantastic replies