What to ask when looking at property already tenanted

[jacquie keelan 1]

Hi all  

Newbie here, I'm very excited to start my property journey and have identified area i want to buy in.  A number of the properties on  right move have tenants in situ, this seems ideal  - am I being naive?     What would you ask to see  if you were considering  buying a property already tenanted?  I'd be really greatful for pros and cons  and any other advice from  exerienced landlords.  Thank you   Jacquie

[MWebster 6]

Hi - never actually done this myself but I am about too!

Here is what i will be asking for...

1. copy of current tenancy agreement
2. proof that deposit has been correctly lodged
3. proof that tenant in not in arrears 
4. checking the contract to make sure there are no dodgy clauses in there that might affect me has the new landlord
5. checking if any sort of guarantor is being used at present
6. checking what rent is being charged against what should be being charged. If current rent very low and you want to increase the rent to market value....possible you might have tenant issues straight away

Hope this helps and best of luck.

[jacquie keelan 1]

Thank you that’s really helpful.  
I wondered about asking for any inventory that might exist (guessing most would be unfurnished properties). What about photos of property prior to rent to assess condition? 
Would you expect to see references? 
 

[MWebster 6]

Hi - good point on the inventory and yes I would want a copy. References - probably not much point to my mind as the tenants have already moved in and have a signed AST.

[adamholt 19]

Ensure the lender, if using one [!] is ok with this. From personal experiences they’ve had to be vacant upon completion;

[n-smith 0]

Great question Jacquie, I had similar questions. Also wondered about is there anything in particular I should be looking for when viewing the property?

[julia urquhart 155]

Viewing the property gives you an opportunity to see how the current tenant looks after it. Is it clean / damp / mouldy etc ?

Look behind things where you can to see if condensation is settling and forming mould; look closely at the bathroom - bath seal / shower seal - for signs of mould caused by tenant use.

Look in the oven if you can - and in corners and on skirting boards for dust. Are there pets - allowed or otherwise? Are the windows clean? Stains on carpets?

Does it smell - smoke / pets / mould? Are air fresheners being used to cover up anything? Check the outside space - is it being looked after?

This is possibly your only opportunity to assess how the tenant lives so go in knowing exactly what you want to check so you can have a good look - it is always slightly awkward looking around someones home when they are there but it could save you problems in the long run.

I would also ask the tenant who lives there (to compare with tanancy agreement) and what their plans are - if they are good tenants you want to keep this is your opportunity to reassure them they are not going to lose their home - so tell them your intentions and play their fears.

Good luck  

[jacquie keelan 1]

On 8/31/2020 at 7:21 AM, julia urquhart said:

 

Look in the oven if you can 

 

Crickey!   I'd be mortified if someone was to look in my oven!!!  Joking aside this is really helpful - Thank you