More landlords across the UK are realising the advantages of both selling and buying a property with a tenant in situ on an assured shorthold tenancy agreement.
So what does ‘tenant in situ’ mean?
When a property is offered for sale with a tenant in situ, it means there is already a tenant living in it. Depending on the terms and conditions of the tenancy, the tenant will be entitled to continue to live in the property even after it has been purchased by a new owner. The change of ownership does not override the tenancy agreement and the tenant’s rights.
What are the advantages of buying with a tenant in situ?
Investing in a property with a tenant in situ is incredibly beneficial for landlords. The advantages of this scenario include:
• A reliable, trustworthy tenant is valuable to any landlord, so having somebody in situ means you don’t need to search for one
• Having a tenant in situ guarantees you rental income from day one
• You can budget with confidence, knowing the rent you will receive until at least the end of the existing tenancy agreement
• Buy with access to the existing tenant’s full rental history
With a contract in place, tenants need not be affected at all by a change in the ownership of a rental property, ensuring their happiness and willingness to remain in their home is undiminished.
Leaders operates a dedicated platform, Property Investment Hub, to market properties on behalf of landlords with the intention of matching them with buy-to-let investors on a vast database of potential buyers - and it has witnessed many success stories over the years.
One of those involved was Jean Meeghan, whose three properties had been professionally managed by Leaders in Waterlooville since 2006. So when she decided that her time as a landlord was drawing to an end, Property Investment Hub was an obvious first port of call.
“Property Investment Hub offered a great solution to selling via the open market. The team helped me sell all three of my properties to an investor with the tenants in situ, which meant I had rental income right up until the day of exchange,” she explained.
“Overall, Property Investment Hub provided me with the perfect solution to selling my investments and happy tenants who were able to continue living in their home, without being served notice to vacate.”
Property Investment Hub is just as effective at meeting the needs of landlords who wish to buy a property in order to expand their portfolio.
Anthony Few acquired three tenanted properties in Manchester after being made aware of them through Property Investment Hub. Mr Few was already a Leaders landlord in his home town of St Albans, but used the company’s national network of branches and contacts to invest in the north-west.
“I found the service to be really good,” he explained. “The team responded quickly at every stage of the process and buying properties with tenants in situ was a real bonus.”
There are hundreds more landlords in the UK and abroad who have successfully sold an investment property or expanded their portfolio through Property Investment Hub, so if you would like to be added to the database or would simply like to learn more please contact us today.
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