Buying with existing tenants and raising rent

[odecar]

In the process of buying a couple of properties from a landlord reducing his portfolio.

There are existing tenants at very low rents who have been insitu for year to 18 months.

AST has finished but rents weren't raised to market levels.

On purchase I intend to raise rents to Market level and appreciate any feedback that will minimise the hassle and barriers that may happen.

thanks

[Simon Dewsberry]

Hi odecar

Start "discussions" with existing Ts/vendor immediately - completed on a Flat 2 weeks ago where T was paying £480pcm i discussed rent with them before i completed (had been in situ for 6 years !) and agreed a rent rise to £525 for first 6 mths - at which point i was going to do the place up and jack the rent to my usual £650 - 2 days before i called them to reassure them that they could definately stay at £525 only to find that they had moved out !

All good as it turned out as i relet 3 days after completion for £625 6mth deal , then will renovate !!

As always, communicate - I would give them/vendor the option of "fair rent" and new ast to be signed

OR request vendor to issue a s21 if they dont agree -one of these to be condition of sale .......to be real safe either a signed ast with "fair rent" or WAIT until vacant possession.....