Do any fellow landlords/investors have an opinion as to whether they would prefer tenants in-situ or whether they prefer to find their own or would potentially have their own candidates lined up? Thank you.
Vacant property is easy to sell. Have tenants in-situ might find tenant doesn’t want to leave after exchange contract.
Thank you for your reply.
Do you also know what happens if a property is sold with tenants in-situ?
Is the old Tenancy valid or does a new tenancy with the new landlord commence or can new landlord just issue notice to quit?
I have never bought such property but did see some have tenancy in when in sale. I think these are legal side and you need to let your lawyer contact the buyer’s lawyer to confirm these.
I think better to draw up some agreement from your lawyer to tenancy first. One to show the buyer some confidence that the property will have income if they want to keep the tenant or have option to vacant the property. The agreement can say on the completion date, the current tenancy will take over by the new owner immediately without rent rise, etc.
Only concern is tenant might just want to move out since they have to put up with any viewing, or have the uncertainty of whether new owner wants to continue to rent to them or not. Or they might need to find new place near the completion date if the property needs to be vacant.
That is my dialemma as well. I am planning to sell up one of my properties. Currently it has tenant in, but I will wait until they leave, repaint walls, etc then up for sale. vacant property with the right price will sell quickly.
Thank you very much.
I am thinking of auction as am in high rental area so would undoubtedly go to another investor.
So don’t really want to do too much to it if they leave.
Good luck with the sale of your place. I’ve just had enough.
Hi I’m looking to purchase Buy to let portfolios for cash and dont mind tenant in residence. Where is your property?
I sent private message as this is a public forum.
Just to pick your brains, know you said you are happy to purchase property with tenants in-situ, but as an Investor do you have a preference? Does it depend on state of repair of the property, or of the tenants at all?
Or is it just about being right area, right price etc. and you sort the rest out as and when? Thank you.
As long as the area and price is right and I can get all the information I need to asses the potential costs to rectify or refurb then that’s fine, but the discount is important.
As a first time investment LL in 2015 (aside from previously renting out my own home via an agent, which turned out to be disastrous), I was pleased to find a flat up for sale with a tenant in situ. This was to be my only income, so having the rental income start as soon as the sale was complete was important. My solicitor was on the ball, the sale was quick, and I saw the tenancy agreement that was in place with an agent before completion. I had the choice whether to continue with the agent and decided not to. However the tenancy agreement stayed in place.
This arrangement meant I also didn’t have to do any work on the flat or go through the process of finding tenants. As it so happened the very elderly tenant died of old age about 5 months later; I’d had 5 months to prepare as a new LL, whilst getting the rental income. And I was then more ready to go through the process of revamping the flat, sorting all the documentation, finding tenants etc.
So for me, it was a win win. It just so happened that the flat was also the best one that I viewed, compared to others at a similar price. Other new investors maybe in a similar position and appreciate an already tenanted property.
Hello. Thank you for sharing your experience.
Do you remember what happened with the deposit at all please?
Unfortunately no deposit had been put in place. The lady selling the house was distantly related to the elderly person in the flat, so she hadn’t bothered with a deposit. I had to accept that when I made the purchase. As it happened there was quite a lot of work to do after the tenant passed on, however I was fairly prepared that that would be the case.
Thank you. Glad it all worked out well for you.
Bought one last December with 2 tenants in situ. We used the same AST but the solicitors were made aware on both sides and the AST were drafted into the other Legal’s so it covers the next landlord therefore no need to set up a new AST for the tenants.
However the deposits were released directly to me by the agent and I in returns had to re register and protect it.
The contracts have expired and we have since then on a rolling contracts
But the key there is that the solicitors have to include the AST within the legal purchase documents
Thank you, that’s helpful.