Buy to Let with existing tenants and agent
I am new to this forum and wanted some collective wisdom please. I am due to purchase a house with sitting tenants.
The estate agent involved in the purchase is also involved with the let and currently takes a monthly fee from the existing owner for the privilege. Once I own the house can I renegotiate the percentage taken by the estate agent?
Furthermore, can I get rid of the estate agent altogether and just get the tenants to pay me? The estate agent mentioned that when I complete I will need to come in to sign a contract to transfer the let on my name etc.
Advice much appreciated
MoShahid
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Member Since September 2013 - Comments: 217
12:39 PM, 2nd December 2014, About 11 years ago
Hi Moshahid,
Once you are the owner you can decide what to do – unless in the sale and purchase agreement there is a restriction on who you can appoint. But surely your solicitor undertaking the purchase should advise you?
Member Since April 2014 - Comments: 163
12:52 PM, 2nd December 2014, About 11 years ago
When you buy, the existing tenancy should be assigned over to you, your solicitor will advise on this. Otherwise you may need to get the tenant to sign a new tenancy.
As you have no contract with the letting agent you do not have to continue with them – however, they could cause you problems if you drop them. It might be worthwhile signing up with them and then considering dropping them later. Check the small print in their terms to see what it would cost you to do this. You can try negotiating better terms with them but i would expect them to be pretty inflexible – particularly if they are part of a big firm.
Member Since April 2014 - Comments: 12
1:34 AM, 3rd December 2014, About 11 years ago
One important thing to remember when buying with a sitting tenant is to make the tenant aware of the Completion date and if it coincides with the rent day make sure they cancel any rent payment by direct debit or standing order in favour of the existing land lord or his agent. otherwise the previous LL will get paid the first month’s rent instead of you and it can take ages to retrieve it. Typically the standing order is set for a few days before the rent day to allow for slow bank transfers so don’t leave it too late. If Completion does not coincide with a rent day the seller’s solicitor should just apportion the rent and you should get the next rent payment but, again, only if the tenant cancels the current SO or DD and sets up another one in your favour.