Hi
my husband is intending to buy a property off a landlord that is already with open rent and to keep existing tenants (family) how does he go about this and to register has a new 1st time landlord?
Once the deal has gone through, your husband will have to serve section 3 and section 48 notices on the tenant. This is to officially introduce himself as the new landlord and the new landlords bank details for the payment of rent and a UK address for the serving of notices. If he wishes to continue managing the tenancy using Openrent, I imagine he would have to sign up to Openrent and seek their advice on transferring the tenancy from the old to the new landlord.
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Proceed with extreme caution! Are you fully aware of the Renters Rights Act and everything it may mean with regard to regaining possession of your property. Are you fully aware of making tax digital, income tax on rent received etc. Do you know the current tenant? Do you know what your obligations are in relation to being a Landlord. Capital gains tax should you decide to sell , ICO registration , local authority licencing, wednesday is budget day with possible tax/national insurance implications etc ,etc.
Many landlords are selling up and leaving the private rental sector, myself included.
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You should do full due diligence on both the tenancy and the property or you might get a nasty surprise down the road.
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Be v careful
-meet current tenants find out their future intentions
-do same referencing and right to rent checks as you would for a new tenant- check their history of paying rent on time, whether any issues with current tenancy (have they caused damage or anything else that may mean retaining part of deposit when they leave), check inventory up to date/get a new one
-get some training to understand landlord responsibilities etc
-remember that you won’t get a much better return than putting £ in the bank - yields of gross 5-6% on price of property not unusual and that’s before all the costs (building insurance, maintenance, void periods listing costs etc). So it’s really only worthwhile if you are in it for the long term expecting to get capital gain (and remember CGT)
Good luck
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first time . Very brave. The best years have passed you by, heed the advice of all the Davids. !
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Hi Yes the tenant is our granddaughter and her partner, they already rent the house and the landlord is selling up with tenants in situ. So we aren’t worried about that
We not out to make profit and it will be long term lease but obviously we don’t want to lose.
We were thinking of staying with open rent after the sale goes through but we’re hoping it would be easy to register and transfer the original contract.,
We will have to look into all the points you have made and follow the landlord tips or any more advice would be welcomed
Thank you so much for replying
Karen
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If you are buying with mortgage check their terms allow renting to family as a lot dont. Same applies to insurance.
I dont think there is a need to involve open rent which is primarily a tenant find platform. The tenancy contract automatically passes over to new landlord and openrent dont really have any involvement unless you want to use their rent collection service which you presumably dont.
Probably need to use OR to get deposit moved to being held for new LL/same tenants as they will have done the deposit with their own insurance backed scheme