Would you buy a tenanted property?

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    Would you buy a tenanted property?

    Hi

    I'm looking to buy a maisonette to let as investment. It 's currently rented on AST contract, until April 2023. So ongoing tenancy.

    Is it advisable to do such, buy a tenanted property?

    Thanks

    #2
    I have done that, and it worked out fine.

    I would not do that now, though, because there are things that have to have been done when the tenancy began and since that, if you can't prove that they were done, would mean the evicting the tenant could become difficult (and potentially impossible).

    You probably don't expect to need to evict the tenant (who may be a lovely person and a great tenant), but things can change (three years ago almost no one expected a plague to change people's circumstances quite so dramatically).
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Originally posted by jpkeates View Post
      I have done that, and it worked out fine.

      I would not do that now, though, because there are things that have to have been done when the tenancy began and since that, if you can't prove that they were done, would mean the evicting the tenant could become difficult (and potentially impossible).
      Thanks, good points.

      The rent at present is managed by the estate agent who also have the flat for sale. Would this be a plus point when comes to things done as they are more thorough than a private landlord?

      Any advantages of buying tenanted property, apart from saving time to find tenant?

      Comment


        #4
        You should work backwards, your should image you already have the property and need to evict the T (for whatever reason) could you do it with the paperwork you have? If the answer is no, then walk away or negotiate a lower price for the property.

        Comment


          #5
          Originally posted by artin View Post
          The rent at present is managed by the estate agent who also have the flat for sale. Would this be a plus point when comes to things done as they are more thorough than a private landlord?
          No, because agents are not more thorough than a private landlord.

          Some agents are more thorough than some private landlords.

          But I believe that all agents are primarily focused on making money from selling property and would do a lot to facilitate a sale.
          And the agent is acting 100% on behalf of the seller (they owe the seller a fiduciary duty) and owe you nothing at all.

          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Would the AST contain all the info I need to ensure whether current tenancy would be trouble in the future and if it comes to evicting?

            Comment


              #7
              Originally posted by artin View Post
              Would the AST contain all the info I need to ensure whether current tenancy would be trouble in the future and if it comes to evicting?
              No.

              You'd need evidence that any deposit taken (possibly multiple times) had been correctly protected and administered and that the correct documentation had been given to the tenant, all within the deadlines (This is horribly difficult!)
              If the property has gas, you'd want every satisfactory gas safety certificate since before the current tenant moved in and evidence that the tenant had been given copies.
              You'd want the current EICR.
              If the tenancy began after 2015, you'd want evidence that the tenant had been given the right version of the Right to Rent booklet in hard copy.
              You'd want evidence that the tenant had been given an EPC for the property before they moved in and that the EPC rating of the property is E or above (ideally you'd want it to be C).
              You'd want an undertaking that there are no issues with the property that have been raised by the tenant since the start of the tenancy that have not been resolved.
              You'd want to see the evidence that confirms that the tenant(s) have a right to reside in the UK.
              I'd want (but could accept living without) details of every rent payment made by the tenant back to day one.

              As it's a maisonette, I'm assuming it's not got three or more people living in it.

              Ideally you'd want a document signed by both the landlord and the tenant confirming each of the points above.

              You'd need to make sure the deposit is transferred to you when the sale completes (chances are the agent has it).

              That's off the top of my head and I might have missed something!
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Correction "How to rent Guide" as well as the right to rent.

                Comment


                  #9
                  Originally posted by ash72 View Post
                  Correction "How to rent Guide" as well as the right to rent.
                  Yes, quite right, thanks for the correction!
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment


                    #10
                    Have a look at these two websites pages:
                    https://www.vestaproperty.com/blog/1...anted-property
                    And
                    https://www.propertytribes.com/26-qu...u-t-12038.html

                    Comment


                      #11
                      Originally posted by artin View Post
                      Would the AST contain all the info I need to ensure whether current tenancy would be trouble in the future and if it comes to evicting?
                      As jkpeates points out it would not. Is this going to be your first rental property and have you done any research into what being a landlord entails? Please don’t just say you’re going to use a letting agent.

                      Comment

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