BTL - Tenant notice
Discussion
Afternoon all’s,
Apologies for yet another BTL thread however I’m hoping the PH Collective can shed some light for me...
I’m in the process of purchasing a BTL, however the agents have told me that I need to give the current tenants 4 months notice due to covid regulations.
Buying a house with sitting tenants is new to me and not what I want in an ideal world however the market is moving quickly and not much is staying up for long.
The rent is currently below what I want so I would be increasing anyway.
They’ve been in the property three years, I will be increasing the rent by £50 to match the street.
They have an AST with the previous landlord I Just don’t want the hassle nor expense of an eviction.
I can’t see anything specifically which covers purchasing a property and the tenant being handed their notice ...
How do I get them out prior to/on completion apart from a brown envelope ?
Apologies for yet another BTL thread however I’m hoping the PH Collective can shed some light for me...
I’m in the process of purchasing a BTL, however the agents have told me that I need to give the current tenants 4 months notice due to covid regulations.
Buying a house with sitting tenants is new to me and not what I want in an ideal world however the market is moving quickly and not much is staying up for long.
The rent is currently below what I want so I would be increasing anyway.
They’ve been in the property three years, I will be increasing the rent by £50 to match the street.
They have an AST with the previous landlord I Just don’t want the hassle nor expense of an eviction.
I can’t see anything specifically which covers purchasing a property and the tenant being handed their notice ...
How do I get them out prior to/on completion apart from a brown envelope ?
Why do you want settled and presumably good, tenants out?
The next ones in might only be there six months and is that worth the £300 increase? What about vacant periods when you get no rent?
Have you really thought this through? If you have, then I'd suggest you're going to be an awful Landlord with that attitude.
The next ones in might only be there six months and is that worth the £300 increase? What about vacant periods when you get no rent?
Have you really thought this through? If you have, then I'd suggest you're going to be an awful Landlord with that attitude.
Oh the joys of a public forum...
I’m not bothered about it being empty for a month or two whilst I do the work, i have a few potential tenants ready. I would rather do the work now when I get it then not have to do it again for a few years after. Just makes sense to me, each to their own and all that...
The house is not to my standards as currently is, not something I want to willingly put my name to in the current condition.
Rent increase would be circa 20% to what they’re currently paying but I believe the rent is low due to the condition of the property.
I have asked my solicitor for advice, I just wondered if the PH collective had previous experience.
If I don’t get vacant possession i then run the risk of them not paying the rent for six months and then having to go through the whole eviction process - at my expense. To then have to undertake work to the property.
Vacant possession= property updates to my standards, better rent returns, uplift in property value.
Not vacant- new AST, can’t do anything with the property, rent possibly capped, have to go through eviction process.
I’m not bothered about it being empty for a month or two whilst I do the work, i have a few potential tenants ready. I would rather do the work now when I get it then not have to do it again for a few years after. Just makes sense to me, each to their own and all that...
The house is not to my standards as currently is, not something I want to willingly put my name to in the current condition.
Rent increase would be circa 20% to what they’re currently paying but I believe the rent is low due to the condition of the property.
I have asked my solicitor for advice, I just wondered if the PH collective had previous experience.
If I don’t get vacant possession i then run the risk of them not paying the rent for six months and then having to go through the whole eviction process - at my expense. To then have to undertake work to the property.
Vacant possession= property updates to my standards, better rent returns, uplift in property value.
Not vacant- new AST, can’t do anything with the property, rent possibly capped, have to go through eviction process.
It’s no London mansion or city centre apartment. Just a Standard 3 bed terrace property.
Obviously I’ve not gone into too much detail (if any at all) and in true PH fashion.
A property currently let at £120 week (due to the current condition) with the potential to be let at £150 week (refurbished) plus the uplift in value.
Advice is advice, “the joys of a public forum” gives everyone the opportunity to pass advice good or bad, relevant or not.
The hope is someone’s been in a similar position and I/others can learn from their experience...
Obviously I’ve not gone into too much detail (if any at all) and in true PH fashion.
A property currently let at £120 week (due to the current condition) with the potential to be let at £150 week (refurbished) plus the uplift in value.
Advice is advice, “the joys of a public forum” gives everyone the opportunity to pass advice good or bad, relevant or not.
The hope is someone’s been in a similar position and I/others can learn from their experience...
I will try to be objective.
Increasing from £120 to £150 per week is a £30 increase, per week or £130 per calendar month. No idea where your original figure of £50 comes into it. The increase is 25%, not 20% per week. If maths is not your strong point, probably best not to get into BTL.
Presumably you are buying the property at an advantageous price, due to the work required to bring it up to standard. If not, then you are unlikely to realise much “added value” as the house is already worth what the street will allow.
You do realise that you can talk with the current tenants? You can discuss the improvements you would like to make and you can have the work undertaken with them in situ, if it is carefully planned. I am sure they would be delighted that you intend to improve the property they have called their home for the last three years.
You can also discuss with them that in return for making the improvements, you would be looking for a rent increase, which you don’t have to evict to achieve, but given you want to ramp it up by a quarter, I would suggest that you step it in two stages over day 12-18 months to bring it up to parity with the market for a similarly refurbished property.
You are entitled, of course, to buy the house, serve a section 21 and enjoy all the fun that may go with that, be potentially out of pocket for thousands and know that you have ruthlessly destroyed their happiness and taken their home from them. Of course, I empathise with our tenants and treat them with dignity and respect. This is why we have long term reliable and pleasant tenants who actually do a lot of upkeep themselves to make the houses they rent from us their own. I realise this does not make me Wolf of Wall Street, but I sleep better at night with a clear conscience.
Increasing from £120 to £150 per week is a £30 increase, per week or £130 per calendar month. No idea where your original figure of £50 comes into it. The increase is 25%, not 20% per week. If maths is not your strong point, probably best not to get into BTL.
Presumably you are buying the property at an advantageous price, due to the work required to bring it up to standard. If not, then you are unlikely to realise much “added value” as the house is already worth what the street will allow.
You do realise that you can talk with the current tenants? You can discuss the improvements you would like to make and you can have the work undertaken with them in situ, if it is carefully planned. I am sure they would be delighted that you intend to improve the property they have called their home for the last three years.
You can also discuss with them that in return for making the improvements, you would be looking for a rent increase, which you don’t have to evict to achieve, but given you want to ramp it up by a quarter, I would suggest that you step it in two stages over day 12-18 months to bring it up to parity with the market for a similarly refurbished property.
You are entitled, of course, to buy the house, serve a section 21 and enjoy all the fun that may go with that, be potentially out of pocket for thousands and know that you have ruthlessly destroyed their happiness and taken their home from them. Of course, I empathise with our tenants and treat them with dignity and respect. This is why we have long term reliable and pleasant tenants who actually do a lot of upkeep themselves to make the houses they rent from us their own. I realise this does not make me Wolf of Wall Street, but I sleep better at night with a clear conscience.
Thanks for the latter replies.
Obviously just talking to the tenant is going to be the best /easiest option, both in terms of tenancy, rent increase and work to the property.
I’ve tried to keep the figures somewhat vague and as an example not the exact, hence the discrepancies.
The property is below market value and in need of modernisation/ refurbishment hence my interest for a vacant property and also in the correct location.
As i previously said it’s not to my standard my liking : if I wouldn’t live in it then how can I expect others too...
We’re all well aware of being tarred with the brush “ landlord won’t do anything, house is a mess” etc etc... it’s this that I want to avoid.
Obviously just talking to the tenant is going to be the best /easiest option, both in terms of tenancy, rent increase and work to the property.
I’ve tried to keep the figures somewhat vague and as an example not the exact, hence the discrepancies.
The property is below market value and in need of modernisation/ refurbishment hence my interest for a vacant property and also in the correct location.
As i previously said it’s not to my standard my liking : if I wouldn’t live in it then how can I expect others too...
We’re all well aware of being tarred with the brush “ landlord won’t do anything, house is a mess” etc etc... it’s this that I want to avoid.
-BFG- said:
Thanks for the latter replies.
Obviously just talking to the tenant is going to be the best /easiest option, both in terms of tenancy, rent increase and work to the property.
I’ve tried to keep the figures somewhat vague and as an example not the exact, hence the discrepancies.
The property is below market value and in need of modernisation/ refurbishment hence my interest for a vacant property and also in the correct location.
As i previously said it’s not to my standard my liking : if I wouldn’t live in it then how can I expect others too...
We’re all well aware of being tarred with the brush “ landlord won’t do anything, house is a mess” etc etc... it’s this that I want to avoid.
Ok, so probably the most pragmatic approach is to buy the house (since it ticks a lot of boxes notwithstanding tenant in situ), then go and have a coffee with the tenants (at their convenience) to introduce yourself as the new owner and their new landlord. Acknowledge the house is not in great condition and outline with them your plans to improve things. Explain that you would like their cooperation and assistance whilst you undertake the work, in a way that disrupts them as little as possible, but that at the end of the day, the house will be dramatically improved. Offer them the opportunity to pick paint colours or carpets (from a range you would be happy with) to give them a sense of involvement, it is their home after all.Obviously just talking to the tenant is going to be the best /easiest option, both in terms of tenancy, rent increase and work to the property.
I’ve tried to keep the figures somewhat vague and as an example not the exact, hence the discrepancies.
The property is below market value and in need of modernisation/ refurbishment hence my interest for a vacant property and also in the correct location.
As i previously said it’s not to my standard my liking : if I wouldn’t live in it then how can I expect others too...
We’re all well aware of being tarred with the brush “ landlord won’t do anything, house is a mess” etc etc... it’s this that I want to avoid.
Also explain that once the work is completed, you will be proposing a rent increase to reflect the improvements made and to bring it up to market rate. Assure them that you will work with them as far as you can to help them adjust to the new rent, if they will find it difficult to make the increase. (I.e. make it a two stage increase to get to where you want it to be).
One of two things will happen:
1. They will feel reassured about the change of property ownership, not see you as a threat and they will engage with you constructively.
2. They will tell you they don’t want any improvements, you are an ass-hat, stick your increase.
Option 1 - happy days
Option 2 - section 21.
Edited by Superleg48 on Monday 7th June 23:51
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