Over the past 20 years, the rental sector has continued to grow in the millions. People’s attitudes have changed towards renting but also individual circumstances have forced people to re-evaluate what they need and want out of a property and its surrounding location.
Over a million people joined generation rent in 2020, compared to 10 years earlier, in which the number currently stands at over 4 million. Renting has become an ideal alternative for younger individuals as those in the 25 to 34 years age group make up the largest group of those renting, although this number is continuously growing and expanding into older age groups.
Many of those renting enjoy the flexibility that renting can present but also the help they receive from landlords who carry out any repairs, upkeep and general maintenance.
Rental properties can also provide occupiers with a lifestyle that suits them, especially as house prices continue to creep up, renting has become a solution for younger buyers, rather than something that should be looked down upon.
Tenanted property investment refers to buying a property with tenants in situ. Investing in tenanted properties can provide a host of benefits to potential landlords who may be seeking to further expand their property portfolio but are interested in more readily available properties.
For anyone who wants to try their hand at property investment, buying a rented property with tenants can be an ideal starting point, as most of the hard work has already been done. The properties you’re interested in already have tenants living in them, and sales can be processed much quicker as compliance and certain standards and legal requirements will have already been met.
Buying a property with tenants can in most cases, provide instant results, and require very little management and hassle when going through the buying process. For many rental properties that become available with tenants, properties are already fully furnished and will comply with necessary safety certifications.
When you purchase a tenanted property, for most landlords, the tenancy agreement is a simple process of changes hands to the new landlord, which must be issued as notice under Section 48 of the Landlord and Tenant Act 1982. This not only ensures you provide your details as the new landlord but it also ensures your tenants stay protected too.
A new tenancy agreement may only be required by law if are there issues regarding the mortgage lender or insurance provider.
If you’ve spotted a property you like and wish to take the proceedings further, you may wish to find out more about the tenants living in that property and the performance of the property. Luckily, tenanted properties come with their own performance history, allowing you to make more informed decisions on your return on investment and to also understand the potential a property has in the present and in the future.
Tenant references provide information regarding individuals who reside in the property you are interesting in purchasing. This information provides insight into whether you would like to continue renting to this person or persons.
Right to Rent checks are carried out as part of this documentation, which is a legal requirement to ensure those over 18 who are occupying the property have the legal right to rent.
You can also request a reference from the previous landlord or the tenants employer to confirm aspects such as how the individual treats the property as well as financial matters such as income.
With permission from the tenant, you can also carry out credit checks to confirm the credit history of a potential tenant and rule out any insolvency or bankruptcy matters.
Investing in residential property can provide fantastic opportunities to investors wanting to expand their property portfolio, but perhaps don’t have enough time to manage them completely.
Through certain management solutions, tenanted properties can continue to be managed as they should but through letting agents who can help investors source tenants, take care of documentation, advertise the property and even take care of the financial side such as tenant deposits and monthly rent.
At Pure Investor we offer our own fully management lettings service, which comes with no upfront costs, but we also work on a no let, no fee basis. Contact us today for more information regarding out lettings service.
Call us on +44 (0) 161 337 3890 or contact us using the form below to arrange your free no obligation property consultation.