Purchasing a rental property with tenants already in place—known as tenants in situ—can be both advantageous and challenging. While you benefit from immediate rental income, you're also stepping into a tenancy you didn't initiate. Here's how to approach this transition effectively.

Firstly, get to grips with the current agreement. Reviewing the existing tenancy contract is important as this legally binding document transfers to you when the property changes hands. From the day you become the new owner, you take on all landlord responsibilities.

It's important to honour the tenancy terms. You cannot simply alter the rules or ask the tenants to leave unless they breach the agreement or the fixed term concludes. Even then, correct notice procedures must be followed, in accordance with the type of tenancy in place.

Ensure all paperwork is in order. Confirm that the tenant's deposit is protected in a government-approved scheme and that all legal documentation—such as gas safety certificates and right-to-rent checks—are up to date. If anything is missing, it’s your responsibility to address it.

Open communication is key. Introduce yourself promptly and professionally to the tenants. Reassure them that their rights remain protected and provide your contact details. A positive start helps build trust and encourages cooperation.

Lastly, assess the property's condition. Arrange a non-intrusive inspection, giving proper notice, to evaluate the state of the property. This helps you plan for any maintenance and understand how well the home has been maintained.

Inheriting tenants can be a rewarding opportunity if approached correctly. With clear communication, legal diligence, and a respectful approach, you can turn a property purchase into a long-term benefit. And remember, if you need expert guidance, we're here to help at Maddisons Residential!

 

 

 

If you need advice and help on buying or selling a property, please contact us to speak with one of our award-winning team who will be able to help you.