OpenRent Community

Things to be aware of for Buying property with Tenants in

Hi All!

can some body help me to remember what are the thing to watch out for?

I was told once there is important issue with it that could cause a very bad impact but can’t quite remember.

Regards,

Why is the landlord selling? How can he prove the tenant is a good payer of rent? Is the tenancy one for life at a very low rent?

yeah good question, why selling if they are making money. Is it the one that if the person is not paying and ended up passing over to you and eviction is not possible at the moment so you lose money?

Maybe this is an occasion you need to do a check on the landlord

Hi Dave,

There are many reasons a landlord may be selling a property even if they are making money with a good tenant.

Are you thinking of buying at auction or on the open market?

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True… check also with local authority that they dont have some sort or order against the property

That’s a very good one.

Would think if you were buying on the open market you could ask to see the rent account and tenancy agreement etc?

We sold at auction and the questions about the tenants, rent etc were asked by the buyers solicitor after the hammer had gone down (i.e. exchange of contracts) but the buyers had seen the house and the tenant who was in-situ at the time of their viewing. The AST formed part of the Legal Pack.

It was open market it is a HMO basically 3 students in it, it is on a ground floor and it looks absolutely crap like an old house, something that student wouldn’t mind staying. The students in there is legit and rent payers and they are leaving next september.

But then i thought it would be a bit of a problem to sell in the future given it is a ground floor flat and the price it is selling at is way above it’s size due to the higher rental yield and straight to tenancy that it is selling.

same size, one big 1 bed and the other is 2 bed but using living room as a separated rooms. the house price is 12.5% higher. might have a valuation issue later in the future i guess.

Sounds like you have found out quite a lot.

Suppose there may possibly be an issue with the students needing accommodation with lockdown etc. as obviously some are having to study online and could do that anywhere.