Pitfalls of buying an already tenanted property for BTL

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For Reference http://www.landlordzone.co.uk/forums/showthread.php?64135-BTL-on-existing-tenanted-property

jjlandlord

Whether or not the tenancy is an Assured Tenancy does not only depend on when the tenant moved in but also on the specific tenancy agreement.

If the tenant wants to stay, and you're happy for them to stay, I would not carry out non-essential work as long as they are there unless I could get a worthy deal with them in exchange.

[Deleted User]

G_M wrote: »

Strange attitude!

If they want to stay you'd think they'd be keen to meet the new owner and give a good impression......

You need to meet them. Do a 2nd visit and ask if they can be present (at a time of their choosing), or drop round one evening.....

You can then also get an idea of whether they do indeed find the property too small and are thinking of moving.

Not so strange. I am in this situation from a tenants point of view. I would prefer to stay here as other private LL's who will rent to tenants on HA are very very hard to find. If he evicts me I have the joy of B&B in another area while waiting for some kind of housing through LA. The house has quite a few issues that the LL will do nothing about (in spite of promiises to fix some of them). The boiler is in desperate need of replacement (LL promised to replace a year ago), stair carpet needs replacing, there are damp issues in the front of the house the LL refuses to see are there (mould and damp smell - keep windows open and have dehumidifier - the LL has asked me to paint over it which I haven't), same for bathroom, laminate flooring is buckling due to poor installation.., the list is endless. I am presently doing redecoration but he wants to bring round a seller who is interested in buying a property with tenant in situ.

Now what if the prospective buyer asks me about the property.., do I tell him the things that need replacing/fixing and get myself evicted by the LL who still owns it? I am not someone who lies and my sense of justice wouldn't want a prospective buyer to overpay for the property. 'I've done things I shouldn't really have had to to make this property more liveable (insulated roof, refurbed bathroom so it wasn't so mouldy, spent hour after hour sanding defects in the careless painting etc).

So I am sitting here wondering if I should just not be here if the prospective buyer comes round. Really the buyer should be negotiating for at least a reduction for boiler replacement.

Oh and jjlandlord, its LL's like you who make tenancies such a nightmare. To my LL, no repairs are essential. That's his get out clause. I had leaking water and waste pipes in the bathroom.., not essential, it was ok as it was (black mould under the tiles, grout obviously recently regrouted to hide it when I moved in,totally refused to listen to me saying kids couldn't sleep in bedrooms because it was so cold (offered to give me a bigger radiator in one bedroom with 'cold wind' in it due to uncapped half removed chimney stack above it as well as no insulation). The plugs in the kitchen have been wired off the light ring circuit, only one socket works without tripping the whole house, not essential. It goes on and on. However it is still a lot better than the alternative.

But it still feels so wrong that I have to make paying rent my top priority regardless of what else is happening, going short on food if necessary and the property isn't as it should be. But I can't let my anger show when the prospective buyer comes round. Not easy. Its really stressing. I could do without this, I can't 'win' or just get a reasonable deal whatever I do. This has been going on for two months now.., I probably have another six of wondering if I am going to be evicted or not, treading on a tightrope not knowing what's the right thing to do or say, controlling my voice so my anger doesn't show without lying.

jjlandlord

deannatrois wrote: »

Oh and jjlandlord, its LL's like you who make tenancies such a nightmare.

What have I said?

deannatrois wrote: »

To my LL, no repairs are essential. That's his get out clause.

Well, that's his, and your, problem and irrelevant (as is most of your post).

silvercar

jjlandlord wrote: »

Whether or not the tenancy is an Assured Tenancy does not only depend on when the tenant moved in but also on the specific tenancy agreement.

If the tenant wants to stay, and you're happy for them to stay, I would not carry out non-essential work as long as they are there unless I could get a worthy deal with them in exchange.

It could be a situation where the current tenant has caused some damage, the cost of which could be recouped from the deposit when the tenant leaves.

Selling a property tenanted means you are not showing off the property to its best. Looking at this property and seeing the repairs needed coupled with the relaxed state the tenants have it, can't be a way of maximising value.

jjlandlord

If the tenant has caused damage there are 2 possibilities:
- They fall within the landlord's repair obligations: Repair must be carried out, and tenant billed, or,
- They do not fall within the landlord's repair obligations: Unless there is a good reason, I don't see why you would repair anything while the tenant is there.

silvercar

jjlandlord wrote: »

If the tenant has caused damage there are 2 possibilities:
- They fall within the landlord's repair obligations: Repair must be carried out, and tenant billed, or,
- They do not fall within the landlord's repair obligations: Unless there is a good reason, I don't see why you would repair anything while the tenant is there.

But that ignores the fact that the landlord could get a better price for his property if it was presented better ie without needing repairs.

In my mind these tenants won't stay long term, so the work will need doing sooner or later, so I have to factor in the costs in my price.

jjlandlord

silvercar wrote: »

But that ignores the fact that the landlord could get a better price for his property if it was presented better ie without needing repairs.

If you're talking about the seller: Yes. But you are the buyer, so who cares?
If you're talking about the rental value: Yes. But then the question is whether it is a good idea to repair what may be broken by the tenant again, especially when you don't know when they'll leave. Best to only repair if quid pro quo from tenant.

silvercar

2nd viewing.

The tenants are looking to buy but don't want to have a second move before they purchase. Completely understandable.

So the price needs to factor in the work that needs doing and the fact that there is a likely void on the horizon.