Buying student let with students in situ
I am a brand new investor and first time landlord so please excuse my ignorance but I am learning from your site!!
I am about to purchase a student let house in a university city with 3 students already in tenancy until July 2014. The current landlord operates the let with a letting agent who find tenants, set up agreements, referencing etc and check them in for a fee of £500. The management of the property is then taken by the landlord.
My question is will I have a problem with renewals if I elect to go down this route and become liable for a renewal at the end of their tenancy should they wish to stay another term. Also, I assume the landlord has already paid this finders fee – would I then have to pay it again for the current tenants or pay proportionately. Any advice would be greatly appreciated before I have to negotiate with the letting agent.
Many thanks.
Dee
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Member Since January 2011 - Comments: 12207 - Articles: 1403
9:23 AM, 17th September 2013, About 13 years ago
Hello Dee and welcome to Property118
Unless there is a contract between you and the letting agent he can’t charge you. The person selling the property to you needs to check their contract and you need to flag this issue with your solicitor to make sure that you do not accept assignment of the contract as part of the sale. The reality is that most vendors conveyancers will not even pick up on the potential issue and that being the case, the problem is theirs, not yours, as they are the contracted party.
Does that help?
Comments: 126 - Articles: 2
3:54 PM, 17th September 2013, About 13 years ago
Reply to the comment left by “Mark Alexander” at “17/09/2013 – 09:23“:
What stage in their student career are your new tenants at? If they are in their final year they may not be renewing next year anyway. Even if not final-years, they may have got fed up of each others stinky socks by the end of this academic year.
Is the property let on 3 separate tenancy agreements or as a sole tenancy? If the former, you realise you may end up with a council tax liability if tenants don’t provide the necessary documentation, or if one stops being a student?
Member Since August 2013 - Comments: 201
5:38 PM, 17th September 2013, About 13 years ago
I wonder if it is a useful idea to obtain a (verified) copy of the form that students send to Student Finance England (or Scottish / Irish equivalents) applying for loans?
It includes information on two persons that can help to trace a student.
The powers that be use this to, amongst other things, trace students that abscond and do not make loan repayments.