NOVICE Posted July 2, 2006 Report Share Posted July 2, 2006 Hi I am interested in a property that already has a tennant who would like to stay. I think he is claiming benefits and his rent is being paid to a rental management company. An have a few quieries...... Would it be possible to end the arrangement with the company straight away? Also his rent seems very low for the property, could I and how could I put the rent up? What would I do about a bond, do I have to accept the one he has given to the current landlord or can I ask for more? Is there anything else I should think about that I don't know of? Thanks for any help you can give me! Link to comment Share on other sites More sharing options...
F-Prop Posted July 2, 2006 Report Share Posted July 2, 2006 Hello! First I'd confirm if this tenant is on benefits or not if you're not sure, then check the tenancy agreement he's signed. It should be an assured shorthold tenancy (AST) Then discuss with the rental company about terminating their management agreement. It's usually possible, but remember you're on your own if things go wrong (i.e. he doesn't pay you!) The bond would be transferred to yourself (that won't be easy management companies seem reluctant to pay out - I speak from experience!) I doubt you'd have any grounds to increase the bond, I've never heard of it being done before but someone may prove me wrong. As to the low rent, has the tenant been in a long time? Perhaps the rent has never been increased. In which case you probably have grounds for an increase however you may just end up annoying a perfectly good tenant and he'll leave! One other thing... if you're buying this property with a mortgage, just check they are happy to accept DSS tenants, most don't! Good luck! Trevor. Link to comment Share on other sites More sharing options...
NOVICE Posted July 3, 2006 Author Report Share Posted July 3, 2006 Hi Thanks very much for the advice. Would I be in a position to check the agreement before putting an offer in? If he is a dss tennant does the money not come straight from them? I was thinking that any increase woul not affect him? Link to comment Share on other sites More sharing options...
F-Prop Posted July 3, 2006 Report Share Posted July 3, 2006 Yes, you should be able to see the agreement. Ask your solicitor to request a copy and explain it's in regard to the purchase. The DSS usually only pay a propotion based on his personal circumstances. Any increase would almost certaintly have to come out of his own pocket. Trevor. Link to comment Share on other sites More sharing options...
NOVICE Posted July 3, 2006 Author Report Share Posted July 3, 2006 Hi Thanks for all the great help! Still unsure what to do. Spoken to the rental management company and he has a rent increase of £10pcm every year. He has run the state of the flat right down (ie everything is absolutely filthy) and I am sure that if it was done up it could command an extra £100 pcm. Can anyone suggest what I could do with the flat. (There is 1 in the same block for sale with a price tag 60% higher than this flat)....OR should I walk away? Thanks again! Link to comment Share on other sites More sharing options...
F-Prop Posted July 3, 2006 Report Share Posted July 3, 2006 To be honest... my advice is walk away. I'm sure you will find better properties without sitting tenants (always difficult in my experiance) Probably the reason it's 60% cheaper is because it's filthy and has a tenant, not many people would take it on. I'd leave the problem to someone else. Good luck either way you decide! Trevor. Link to comment Share on other sites More sharing options...
kaman Posted July 6, 2006 Report Share Posted July 6, 2006 What a great opportunity to acquire a property well below market value find out what notice you need to give to the tenant to get rid of him/her once this is done get rid of the management co and fix up the flat, you can then re let at higher rate of return and remortgage and get all your money out to do the next one, or just sell and take the profit. If you want to suceed in the property market you have got to get your hands a little dirty sometimes. In my opinion too many people are buying new apartments and having to subsidise the mortgage payments in the hope that the market will rise. Good Luck Kam Johal Link to comment Share on other sites More sharing options...
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