keeping tenants after buying a property

sfancy

Hi there,

I have just completed on a property which has existing tenants whose tenancy is ending in 1 week. The initial tenancy was an agreement through a lettings agency.

The tenants have indicated that they would like to stay on but at a reduced rent. We are willing to facilitate this as the agency fee we will save by not dealing with the agent will cancel out the difference.

Can we keep the existing tenants without paying agent fees or will we be liable regardless - we have never signed anything with the agent?.

All thanks in advance.....

G_M

The tenants are already yours.

When you purchased theproperty you became their landlord.

As to what happens when their current Fixed Term ends in a week (note, the tenancy does not end, just the fixed term), read:

Ending/Renewing an AST (what happens when the Fixed Term ends?)(What is a Periodic Tenancy?)(How can a LL remove a tenant?)(How can a tenant end a tenancy?)

As for the agent, it is entirely up to you whether you want to sign a management agreement with them, or DIY your letting.

Either way, you have a legal duty to inform your tenants of the fact you are their LL (Landlord & Tenant Act 1985 section 3).

As for rent, you can offer the tenants a new tenancy at the same, a higher, or lower, rent, and they can accept or decline. (see link above)

It's concernig you seem uncertain of things like this, given you have got as far as you have. What else have you not though of, or misunderstood?

What about their deposit for example? You realise you are now legally responsible for it....

New Landlords (general information for new or prospective landlords)

sfancy

Thanks for your speedy reply.

We just completed on the property on Friday, hence the scramble.

Just to clarify: As we have not signed any agreement ( the previous owner did) we are able to keep the tenants on without continuing to pay the lettings agency? They are charging 15%!

The tenants contract indicates that they have a check out, could this be delayed if we independently extended their contract?

I will have to check the deposit but I understand it is being held by the lettings agency.

Many thanks again

G_M

sfancy wrote: »

Thanks for your speedy reply.

We just completed on the property on Friday, hence the scramble.

Just to clarify: As we have not signed any agreement ( the previous owner did) we are able to keep the tenants on without continuing to pay the lettings agency? They are charging 15%!
The 15% was part of acontract between the previous owner andthe agents. You were not party to thiscontract so are notbound by it.

The tenancy is unaffected by the sale, other than that you are now the LLs. You can end it (via normal lawful means) or not - just as you wish.
The tenants contract indicates that they have a check out, could this be delayed if we independently extended their contract?
The 'check out' (you mean inspection?) wouldonly happen if the tenancy is ending. Is it ending....?

Do you want it to end? If so take the necessary steps!
Do the tenants want it to end? If so, have they taken the necessary steps?

I will have to check the deposit but I understand it is being held by the lettings agency.

Many thanks again

What seems tobe missing here isany sensible conversation between you and your tenants! Go and see them!

(Don't just turn up, and get accused of harrassment, ring, or put a note through the door, introduce yourself, and ask if you can comeround for a chat, cup of tea, discuss any problems they have with repairs, and discuss the future etc.)

If both you and they want the tenancy to continue, agree either
*to let it do so as a Periodic Tenancy or
*to sign a new Fixed Term at thesame/higher/lower rent

Then WRITE, formally telling them you are the LL, instruct them of the new address "for the serving ofnotices", and tell them who/how/where topay rent in future.

I really cannot believe you have not got all this worked out before you even decided to buy, far less actually Completed!

sfancy

They only moved in a year ago.

45002

theartfullodger wrote: »

NB When did tenants 1st move in?? Not the date the agent or vendor told you but what does tenant say??

If before 1997 or 1989 start worrying - they've almost certainly more rights than in the tenancy (which may be a sham) you've been shown...

http://england.shelter.org.uk/get_advice/renting_and_leasehold/private_tenancies

Cheers!

sfancy wrote: »

They only moved in a year ago.

sfancy

Why was the previous owner/landlord selling up with tenants still in place and not selling the property empty ?

G_M

45002 wrote: »

sfancy

Why was the previous owner/landlord selling up with tenants still in place and not selling the property empty ?

Obviously he was a cuddly landlord who felt his tenants' well-being came first, so he was happy to sell at well below market value so that his nice tenants could keep their home.

Unfortunately the evil letting agents (Grrrr!) had other ideas, and served a S21 Notice without telling him.

And new Immature Naive Landlord had no idea what he was doing so just assumed that if the agent was evicting the innocent tenants, that must be the right thing to do.

And if the old LL was paying 15%, that must be the right thing to do.

But LO! The Fairy Godmother appeared, foruming like a star in the East. And she was good. And she did advise the ingoramus landlord that he should take a grip, release his grasp on his ****, and start controlling his new world.

And so saying, she did shake her wand that he could come, and join the enlightened.

And the tenants were saved and did rejoice, that at last they could securely enjoy their barn, and the cattle and pigs (which being Jewish they declined to slaughter).
And so endeth the lesson.

tealady

Thanks G_M for the 1st (and probably the best ) laugh of the day.

anselld

Make sure you have the tenant's deposit and it is protected correctly as you are legally responsible for it.

Make sure the tenants know to pay rent to you rather than wherever it was going previously.

Hopefully you have secured all the other paperwork regarding the tenancy ( eg signed inventories) from the vendors.

Then consider your options to extend or renew tenancy as above.

The agency is not your problem, it is for the vendors to deal with the termination of their contract.