Buying a Property with Tenants in Situ

As a landlord, you may be wondering if you can buy a house with tenants in situ. The good news is that yes, it’s perfectly possible to purchase a property with sitting tenants, and in fact there are good reasons for doing so. However, there are a few things that you need to take into account. This guide will cover the basics and explain how Landlord Property Exchange can help.

For an investor, buying a house or flat with tenants already in place can make good sense. You will be able to see the tenants’ history of making payments on time, and you know you will have guaranteed rental income right from the day one, with no wasted time finding and vetting new occupants, or redecorating/refurbishing a vacant property ready to be occupied. Your conveyancing solicitor should however still carry out checks on the tenant’s status.

Normally the tenancy agreement will continue unchanged – make sure that you get a copy from the seller, plus the property inventory and details of the deposit protection scheme, as well as all the usual documents when buying a property, such as EPC and gas/electrical safety certificates.

Bear in mind that the Renters’ Rights Bill, due to come into force in 2026, will abolish fixed-term tenancies (ASTs) and replace them with periodic tenancies – this will apply to both new and existing tenancy agreements.

Yes, it is possible to get a mortgage on a property with sitting tenants, but this will need to be a specific buy-to-let mortgage. Because BTL purchases are seen by lenders as higher-risk, interest rates will usually be higher too. If you are a cash buyer then you will be in an ideal position to find good deals on houses and flats with tenants in situ.

While exchange of contracts makes the purchase legally binding, you do not become the legal owner of the property until the date of completion. This means that, unless you come to a separate agreement with the seller, any rental income between these dates belongs to the seller.

If the seller has a good relationship with their tenants, it should be fairly straightforward to arrange a viewing; if this is difficult it may be a warning sign. A viewing will be a good opportunity to talk to the tenants, as well as see the property itself: important as the tenants form part of the deal!