Great news you have just secured your first Rent2Rent or lease option property direct from landlord and there is already a tenant in place. That is great news isn’t it? Yes it can be because you have immediate cashflow but if you are talking on a tenant then you are taking on another legal relationship which may or may not have been set up correctly by the owner/landlord.
You absolutely must check that everything is in place and legal before you take on this responsibility otherwise you may find yourself in hot water with a tenant that you can’t get rid of and a whole load of expense and stress.
I know that when new property investors are setting out property sourcing for Rent2Rents and lease options, their major focus will be on securing the deal and getting hold of that property.
Most others matters with that property will become secondary to them. That must not happen otherwise all that great property sourcing could turn very sour.
So here is a list that you should go through if your Rent2Rent or lease option property already has a tenant in place before you take the property on.
Did you get a copy of the existing AST?
Was a deposit taken by the owner/landlord?
Did the landlord protected the deposit within 30 days of receipt?
Was the Prescribed Information about the deposit served to the tenant?
Was the ‘How to Rent’ booklet issued?
Was the ‘Right to Rent’ procedure carried out properly?
Was an EPC given to the tenant?
Was the current gas certificate given to the tenant?
Does the property have a current gas certificate?
Is the property in a selective licensing area?
If so, is there a licence already in place?
Licences are non-transferrable so are you able to apply for one, and can you afford the additional cost?
Inheriting a tenant should be immediate cashflow but make sure everything is in place before you sign. If you have any questions in relation to this, please feel free to leave us a comment below, or share the article using the buttons below.