5 Things To Know – Buying A House With Tenants in Stockton-on-Tees

Imagine searching for a new investment property and finding the one that’s perfect for expanding your portfolio. The location and the price are excellent and it has all of the characteristics you wanted. It seems like a once-in-a-lifetime opportunity! But then you find out it has a tenant. While daydreaming about your investment, there are some things you should consider when buying a house with tenants in Stockton-on-Tees, North East.

Before the Offer

You must do your best to get all the necessary information when making an investment of this size. Schedule an appointment by calling us at 0191 369 2069 and we will set up the viewing of the property. Have in mind that you might wait for a day or two since tenants usually have the right to get a notice before you visit the property. Also, your visit has to be scheduled during appropriate times. When you get there, try to ignore the tenant and their personal belongings and focus on the property itself, because tenants have the right not to keep the property ready for presentation. Also, be aware that some of them might actually try to prevent the sale of the property. That’s why you should be friendly and kind to them. You don’t want them to use their first right of refusal on the property and obliterate your plans.

Seller Negotiations with Tenant

If the seller is prone to negotiation and motivated to help you, you could just make an offer conditional upon making the property vacant after the sale. Of course, if you want it empty. This would require the least work from your side and the seller will have to deal with negotiations with the tenants and their transfer to another location. After all, it’s your right to want or don’t want to keep a tenant after the sale. 

Your Negotiations with Tenant

You might be the one that has to negotiate the terms with the tenant after the purchase of the property. In that case, do your best to approach them with caution, since they could leave the property in a state you wouldn’t want to encounter. Be careful – you can’t break the existing lease or force them to leave, since they are protected by law. The tenant has the right to stay in the house under the terms of the existing lease, and in case you purchased it as a repossession, they have at least 30 days to vacate. By having all this in mind it’s less likely you will end up with a legal claim on your hands.

Your Job As A Landlord

In case you don’t mind having a tenant at your property, a smart idea is to get to know the laws related to the rights and obligations of tenants and landlords in Stockton-on-Tees and North East. Some of your main duties will include keeping the common areas safe and clean; maintaining electricity, plumbing, heating, ventilation, and sanitary systems; making sure that everything is all right with structural elements are safe and intact. You should make sure that your tenants have access to heat, running water/hot water, and regulate waste disposal.  Additionally, your duty is to take care of environmental toxins such as lead paint dust and asbestos and conduct pest control through regular checkups and extermination. Also, go through the leases to familiarize yourself with any duties you weren’t aware of, such as utility payment, maintenance, etc.  Keep up to date with laws that concern you and you won’t have to be facing the court. 

The Closing Process

When you made the offer and created a plan about the tenants in your future property, you should require inspection records from the seller before each of the tenants moved in. This is a good way to check for any potential damage to the property. You should also meet with tenants to introduce them to the situation and the next moves. Once the final closing is set in stone, get the appropriate insurance for your property, and take care of the changes in your property management. 

Contact us today at 0191 369 2069 to further discuss buying a house with tenants in Stockton-on-Tees!

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