About to exchange property with tenants in situ - what happens with the rent?

jumperabv3

theartfullodger said:

Do you know when tenant says they 1st moved in? If early enough it won't be an AST (regardless of shiny new paperwork) and you'll find eviction nigh on impossible

They moved 10 days ago, 1st of June 2020. I have a copy of their AST.

eddddy

jumperabv3 said:

They moved 10 days ago, 1st of June 2020. I have a copy of their AST.

And you're happy that it's all legit - and that the tenants aren't connected with the seller?

(The scam to look out for is that the seller finds some mates to sign an AST with a hugely inflated rent.  The high rent makes buyers think that the property is worth more than it really is. Then the tenants 'disappear' once the property is sold.)

greatcrested

Yes you'll need to comply with S48 of the Landlord and Tenant Act 1987  as well as the Landlord & Tenant Act 1985 S3  I referred to earlier (thanks artful).

I'd also check:

* date deposit was paid

* date deposit was registered

* date deposit PI was served on tenant

If the above was missed, or was late, you would become liable for the penalty as the landlord.

jumperabv3

eddddy said:

And you're happy that it's all legit - and that the tenants aren't connected with the seller?

(The scam to look out for is that the seller finds some mates to sign an AST with a hugely inflated rent.  The high rent makes buyers think that the property is worth more than it really is. Then the tenants 'disappear' once the property is sold.)

Yes, 100% happy with this.
The tenants were found via Parkers, they had initially previous potential tenants who wanted to rent it out as well but their employment reference took so long to be done - so Parkers eventually declined their tenancy and found new tenants with very good record, their references went through extremely well ("with flying colors" as the agent said).

Also the owner is an old lady, she lived in the property from the time it was built, I like it that the property had only 1 owner living in it, she's old now thus need to move (annex), and her daughter is helping her and taking care of the sale on her behalf - no, they are not scammers and they don't seem to be trying to scam - they produced all the required documentation very nicely and in a very organized way.

jumperabv3

greatcrested said:

Yes you'll need to comply with S48 of the Landlord and Tenant Act 1987  as well as the Landlord & Tenant Act 1985 S3  I referred to earlier (thanks artful).

I'd also check:

* date deposit was paid

* date deposit was registered

* date deposit PI was served on tenant

If the above was missed, or was late, you would become liable for the penalty as the landlord.

Thanks! I will certainly check all that.
I have another question that comes to mind - would you buy rent insurance? The tenants seem to be quite "solid" but honestly in this crazy COVID19 climate - some insurers via GoCompare offer this for £6/month on top of a policy that would cost at minimum £150-170 per year (home insurance).
Would you buy home insurance for the building itself only + rent insurance as well? Is it worth the expense? What do you think? 

Ratkin007

You may also want to check if the property neds to be licensed with the local authority if you have not already done so. 

davidmcn

jumperabv3 said:

greatcrested said:

Yes you'll need to comply with S48 of the Landlord and Tenant Act 1987  as well as the Landlord & Tenant Act 1985 S3  I referred to earlier (thanks artful).

I'd also check:

* date deposit was paid

* date deposit was registered

* date deposit PI was served on tenant

If the above was missed, or was late, you would become liable for the penalty as the landlord.

I have another question that comes to mind - would you buy rent insurance? The tenants seem to be quite "solid" but honestly in this crazy COVID19 climate - some insurers via GoCompare offer this for £6/month on top of a policy that would cost at minimum £150-170 per year (home insurance).

I doubt insurers are now taking on the risk of "crazy COVID19"-related claims.

jumperabv3

Ratkin007 said:

You may also want to check if the property neds to be licensed with the local authority if you have not already done so. 

Already checked - it's not. In London it's much more common.

davidmcn said:

I doubt insurers are now taking on the risk of "crazy COVID19"-related claims.

I tend to think the same but somehow in GoCompare there is an option to buy it, I would need to check their policy or ask the letting agent if they offer such an insurance (most of them used to offer it, nowadays - I don't know, but that's the risk I'm taking renting out a place knowing these are unprecedented times).