buying a property with a tenant in place

**kim gramlick** · 17-03-2007 16:34 PM

Hi there i'm a new member so be gentle with me.I'm sure you clever peps can help me.I'm soon to purchase a property with a tenant (not a sitting tenant with a regulated rent) who has asked to stay , I am happy for his tenancy to continue ,I will obviously credit check him etc but I wasn't sure if I renew his tenancy at the end of its time or if its periodic on completion day what is the correct procedure, thanks.

**settloe_99** · 17-03-2007 17:11 PM

There isn't really much point in credit checking your tenant as they are already in occupation so if you do find something adverse there is very little you can do about it (unless they go into arrears or a S21 has expired).

Personally I wouldn't renew there tenancy agreement. If you do you are locking yourself into a new fixed term which isn't necessary as your tenant still has the same legal rights under their old agreement.

How long have they been in occupation and what is the term of the agreement?

**kim gramlick** · 19-03-2007 06:53 AM

Thanks for your reply, I've been told the tenant has been there for 4 years ,he and his partner seem nice people and they keep the apartment immaculate ,I'm still waiting for the agent to get back to me regarding the tenancy.Also with the security deposit ,I assume the previous LL gives it back and I then receive it placing it in the TDS if completion is after the 6th April.This is the 1st property that I'm managing myself as others are with agents as they are a distance away so I obviously want to do it right for myself and the tenant.Cheers.

**jeffrey** · 19-03-2007 15:43 PM

Originally Posted by kim gramlick

Thanks for your reply, I've been told the tenant has been there for 4 years ,he and his partner seem nice people and they keep the apartment immaculate ,I'm still waiting for the agent to get back to me regarding the tenancy.Also with the security deposit ,I assume the previous LL gives it back and I then receive it placing it in the TDS if completion is after the 6th April.This is the 1st property that I'm managing myself as others are with agents as they are a distance away so I obviously want to do it right for myself and the tenant.Cheers.

ALSO:
1. Ensure that, on completion, V or V's solicitor hands over to you a Letter of Authority addressed to T and directing that all further rent be paid to you as new L.
2. Serve on T not only that Letter but also your statutory Notices under s.3 of LTA 1985 and s.48 of LTA 1987.

**rewop46** · 19-03-2007 16:29 PM

Kim

If you have a long term tenant then the likely hood of them staying is good. No void periods, probably no repairs; landlord's dream.

If they are long term their rent may be a bit on the low side; we do that to keep tenants and avoid the void periods which are expensive. If this is the case don't wade in and hike the rent, they may just up and go. Put it up with inflation rate every year.

Good luck

rewop

By the way, kim gramlick, is that an anagram or is it your real name (no offence intended)