Buying tenanted property

Mrs_Imp

We looked at a tenanted property. We decided that if we liked it, then we would offer a financial incentive to the tenants to leave on time.

As it turned out, they were a family who obviously weren't wanting to move, and we didn't like the place enough to have them turfed out of their home. Maybe we're just too soft!!

I felt so uncomfortable about the whole thing, that I'd never view a tenanted property again, unless I was going to buy it as a BTL and leave them in situ.

You could look at buying with the tenant in place, then offering financial incentive for him to move out, but it's a risky strategy.

Werdnal

dancingfairy wrote: »

Another option is to buy with tenant in situ and work on getting him out yourself. Obviously this would mean getting a BTL mortgage,

OP would not be able to live there themselves with a BTL mortgage. Pointless applying for that, with all the extra cost, hassle and a minimum 25% deposit, if their ultimate aim is to move in, as they would have to get it all changed over to a residential loan when the tenant finally moves on.

mr_goosey

Yes, I'm not going to change the mortgage (which as mentioned I'm already 2/3 of the way through application) into a BTL

I had considered the idea of offering the tenant a financial incentive, slip him a bung so to speak. I've got budget to to do so. Do you think this might be best done through the agent, or should I try speak to tenant directly?

19lottie82

Mrs_Imp wrote: »

offer a financial incentive to the tenants to leave on time.
.

this is a good suggestion and can be win win all round IF the T agrees.

henrikbeech

Hi,

You are buying a tenanted property there are a number of things that you must bear in mind.the ideas of buying a property containing an unevictable, low-rent tenant filled most budding landlords with absolute horror, so investors began to insist on only buying properties.the buyer must be provided with accurate information in relation to the amount of rent payable.

There are many benefits involved in purchasing tenanted property for investment purposes.you are no rental void and you receive the current market rent from the day of purchase. This is one of the most important
factors in making a success of your investment.

Werdnal

henrikbeech wrote: »

Hi,

You are buying a tenanted property there are a number of things that you must bear in mind.the ideas of buying a property containing an unevictable, low-rent tenant filled most budding landlords with absolute horror, so investors began to insist on only buying properties.the buyer must be provided with accurate information in relation to the amount of rent payable.

There are many benefits involved in purchasing tenanted property for investment purposes.you are no rental void and you receive the current market rent from the day of purchase. This is one of the most important
factors in making a success of your investment.

Totally irrelevant as OP wants to live in the property themselves, not buying as investment and keeping a tenant!

Fire_Fox

mr_goosey wrote: »

I had considered the idea of offering the tenant a financial incentive, slip him a bung so to speak. I've got budget to to do so. Do you think this might be best done through the agent, or should I try speak to tenant directly?

Be very careful, consider illegal eviction and protection from harassment legislation. There is a proper process for eviction for a reason.

dancingfairy wrote: »

Don't forget that it is still the tenants home until he vacates and he is entitled to quiet enjoyment and protection from harassment.
Just be careful you don't get accused of harassing him, although the landlord has probably more to worry about in that respect if he has been showing people around etc etc.
df

mr_goosey

Yes, that is why I was wondering whether best to do through the agent instead of approaching him directly?

Fire_Fox

Or don't do it at all and let the tenant have the two months notice they are legally entitled to?

mr_goosey

Of course I would not wish to pressure or otherwise harass the tenant. But a cash incentive might help him with his move to his next place and help me secure the property in a timely fashion. Accepting such an offer would of course be entirely the tenants choice.