General (main property discussion here) - Buying with tenants?

I am considering the purchase of a portfolio of four properties,all with tenants.The current owner says that they all pay on time and he has had no problems with them,but then he would say that wouldn't he. So I want some unbiased opinions.Anyone done it and got a story to tell?

Hi Simon,

Just make sure the ASTs are in place. It may be different in Scotland where I am buying, but a couple of flats fell through for me when the solicitors picked up on the ASTs not being in order.

If you take the property on and these are wrong, you could end up with sitting tenants. But your solicitor would obviously pick up on anything like that anyway, or your lender will.

If they are DSS tenants and you are financing through the bank, this will limit your lenders as some do not touch anything to do with DSS.

Hope this helps. Not much but everz little helps I reckon!

Cheers

Simon

Hi Simon,

I'm new to this forum ( & to property dealing), but am learning fast.

I live in Scotland & would appreciate trading your tips & experience for my local knowledge / contacts.

If interested email me: bosscaiqnb@supanet.com

Cheers, Peter Cairney

Simon Paynter - you should be able to ask your solicitor to have the vendor's solicitors forward you the rental records. This will give a good guide as to what the tenants are like. I'm not a lawyer, but I'm pretty sure that their solicitor will do some due diligence on the figures (checking bank statements for the money coming in, and the like) before passing them over.

At the end of the day, if you took the property on with vacant posession you'd be in the same situation regarding the quality of the future tenants anyway.

John

Thanks guys,as was said every little helps.So from what I read here if the correct due diligence is done it should not be a problem.I reckoned that this method would aleviate the hunt for tenants and that sitting tenants with associated rental payments may be a safer way of going on.I will continue to explore the options and when the right property presents itself I would obviously use my solicitor to give the figures the once over.Thanks again.

Just about to buy my first tenanted property too. I tried to get the bank details etc but vendor said it was personal information.

I have just decided to go for it and if the tenants are not as 'clean' as I had hoped I will just have to change them!

i would pay extra for good tenants.

if you know you are buying a house with a tenant that has been there for years, doesn't want to leave and will treat the place well that in my book is worth more than the same house with vacant possession.

reduces voids, arrrears, time and hassle!!

i would pay extra for this. thoughts?

tom

Hi Tom,

This was my thinking!,not sure I would pay what the vendor is asking,got to be worth a cheeky offer.There seems to be a few "bargains" on the market,several on this site.All the BTL buyers are getting hit with their mortgage demands about now,with their two year special rates are also ending.I am sure those that have over stretched themselves and cannot afford to subsidise their tenants for much longer would be pleased to talk to you!