Tenants in situ cut property prices by 15%

While a sitting tenant in a property can be a dream for buy to let investors, offering immediate rental income and peace of mind, finding such an opportunity is a challenge.

Lomond, a buyer of estate agencies, reveals that just 2.8% of properties on the market currently have tenants in situ.

However, for those who can find a property with a sitting tenant, the rewards can be huge.

Investors can potentially save as much as 15% on the market value, with discounts reaching up to 24.6% in Scotland.

Fantastic opportunity for BTL investors

The firm’s chief executive, Ed Phillips, said: “A sitting tenant can provide a fantastic opportunity for buy to let investors, particularly those entering the sector for the first time, as it provides them with a ready-made investment and allows them to hit the ground running with an immediate rental income.

“That said, you still need to be careful to carry out the proper due diligence, particularly with regard to the tenant, to ensure that they are maintaining their rental payments and no other issues have been raised.”

He added: “Opting for a tenanted property that has been managed by an agent can help in this respect, as they will not only have vetted the tenant to begin with but are also likely to have a more robust tenant history and have managed the property to a professional standard.”

Discount when there is a tenant in situ

The property discount when there is a tenant in situ exists because there will be a delay for any potential buyer who wants to occupy the property themselves.

So, while traditional home buyers are discouraged from buying, the situation benefits BTL investors who are looking for rental income, not immediate occupancy.

Research shows there are 12,423 investment opportunities currently available with a tenant in situ across Britain.

Lomond says that the average asking price for a property with a tenant in situ is £149,124 across Britain, 15% lower than comparable market prices.

If you would like to discuss quickly selling your rental property with experts, contact Landlord Sales Agency: