Buying a property with ready-made tenant – things to do

Before Completion

Tenancy Deposit – If the current landlord has taken a deposit from the tenant, agree arrangements for transfer of the deposit. Any arrangements for the deposit must comply with tenancy deposit protection (TDP) legislation and the deposit must be registered with a government-backed scheme. The current landlord should create an addendum to the Tenancy Agreement to confirm the changed deposit arrangements and ensure this is issued to the tenant(s) with a copy signed by the tenant(s) attached to the Tenancy Agreement.{If you are planning on issuing a new Tenancy Agreement immediately after completion, this may not be necessary}

Documentation – Request that the current landlord provides you with the following documentation as applicable:

1. Current Tenancy Agreement signed by the tenant(s).

2. Any Guarantor Agreement signed as a deed {Only tenancies where a guarantor was used}.

3. Deposit Protection {Only tenancies where a deposit was taken}

a. Deposit Protection Service (DPS) – Details of Deposit ID
b. MyDeposits – Copy of Deposit Protection Certificate signed by both parties.
c. Tenancy Deposit Scheme (TDS) – Copy of Tenancy Deposit Protection Certificate.

4. Deposit Prescribed Information {Only tenancies where a deposit was taken}

a. Deposit Protection Service (DPS) – Copy of the Prescribed Information Relating to Tenancy Deposits as an attachment to the Tenancy Agreement with both parties signatures on the last page.
b. MyDeposits – Proof that the tenant(s) has been provided with the prescribed information.
c. Tenancy Deposit Scheme (TDS) – Copy of the Prescribed Information Relating to Tenancy Deposits either as an attachment to the Tenancy Agreement or as a standalone document with both parties initials on each page and signatures on the last page.

5. Copies of any agent/landlord Gas Safety Record/Certificate issued for the property within the last 2 years {Only properties with a gas installation}

6. Proof that the tenant(s) have been provided with any Gas Safety Record/Certificate issued for the property {Only properties with a gas installation}

7. Proof that the tenant(s) have been provided with any Energy Performance Certificate (EPC) issued for the property {Only properties for which an EPC is required and tenancies that started on or after 1st June 2007}

8. Copy of Inventory and Schedule of Condition Report signed by the tenant(s) {Where compiled}

9. Rent schedule and payment history for the tenant(s).

10. Copies of any notices served on the tenant(s) or received from the tenant(s) during their tenancy.

11. Copies of any Electrical Installation Condition Reports (EICR) or records of portable appliance testing of any appliances provided by the landlord as part of the tenancy.

12. Record of Legionella risk assessment together with any written scheme for preventing and controlling Legionella.

13. Contact details (telephone numbers and e-mail addresses) for tenant(s).

14. Proof of immigration status for tenant(s).

15. Proof that the How to rent – The checklist for renting in England was provided to the tenant(s) on or before the day the tenancy began.

16. Proof that the prescribed alarms (smoke and carbon monoxide) at the property have been checked by the Landlord or someone acting on behalf of the Landlord, they are in proper working order on the day the tenancy began.

17. Letter of Authority from current landlord {You will give this to the tenant(s) proving you are the new landlord – can be included as part of the section 3 notice of assignment – see below}

18. Any other documentation or material information relevant for the effective management of the property.

On Completion of Purchase

1. Arrange for new Tenancy Agreement to be signed {Optional but advisable}

2. Serve section 3 Notice of assignment of landlord’s interest {Notice in writing of the assignment given to the tenant(s) to include your name and address – must be given not later than the next day on which rent is payable under the tenancy or, if that is within two months of the assignment, the end of that period of two months. A person who fails to do this commits a summary offence and is liable on conviction to a fine not exceeding level 4 on the standard scale}

3. Serve section 48 Notice of address for service of notices {Not required if arranging for new Tenancy Agreement to be signed and Tenancy Agreement has a clause that covers the section 48 requirements}

4. Prepare Prescribed Information Relating to Tenancy Deposits {This will include new landlord details}

5. Arrange to meet the tenant(s) at the property. This will be an opportunity to:
o Provide any of the above documents
o Provide your emergency contact details and check tenant’s contact details
o Provide details for payment of rent typically a Standing Order Mandate form
o Inspect the property for any defects, health and safety issues and tenant’s compliance with the terms of the Tenancy Agreement.
o Introduce yourself

Have I missed anything?

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