The Benefits of Buying a Property with Sitting Tenants
Completing an investment but not having tenants move in straight away can be very costly for landlords. But buying a property with sitting tenants is an option…
Research from Nottingham Building Society claims that 21% of buy-to-let landlords have to wait at least four months after purchasing their property to find their first tenants.
Owning a property that’s standing empty can be very expensive.
However, many investors do not consider the idea of buying a property with sitting tenants. But this option can save time and money.
If you purchase a property with sitting tenants, you can take advantage of the following benefits:
- The tenancy agreement is already in place, meaning that you do not have to try and agree terms and conditions.
- Less of a financial burden, as you will start receiving rental income on completion of the property.
- No set-up costs, including finding a tenant and paying for an inventory, or drawing up a tenancy agreement.
- Already vetted tenants, including payment history, occupation, references, how well they look after the property and which protection scheme their deposit is in.
Michael Cook, the Lettings Managing Director of Romans estate agent, comments on the benefits of buying a property with sitting tenants: “Property remains a great investment, and buying a buy-to-let property with sitting tenants means you can get an instant return on your investment. As soon as you complete the property purchase, you will begin to receive rental income and avoid any void periods.”
Landlords, remember that if you do purchase a rental property with sitting tenants, you must ensure that all of the legal requirements are in place before taking over the tenancy agreement. This includes references such as Right to Rent checks.
If these checks have not been conducted, or if the tenant’s deposit is not protected by one of the three Government-approved schemes, for example, you will be liable for penalties.