Should I take on fully tenanted properties for Rent to Rent HMO
12 Months ago this wasn’t a frequently asked question, but I’ve been receiving this question more and more often. Back in the day it was more common to find empty properties with a landlord struggling to find tenants, they didn’t know how to maximise it and it was quite easy to take it over. But now many of these properties have tenants, things are slightly better managed, the councils have put in licensing and better quality control. So most of these great and successful HMO property landlords requiring assistance are basically just tired of doing all the work. Should you take on a property like this?
My advice to you would be “no”. Only take properties on when they are empty.
It sounds very easy; everything is ready, you don’t need to find tenants and you can start making money from day 1. That’s great… in theory. It rarely works out that way. It’s a lot of extra hard work and added stress – much more than worth the money you starting making straight away. An empty property allows you to do the maintenance, inspect the property, decorate it and get it up to standard.
When there are already tenants in the property you won’t be able to do this. And this is why: tenants don’t like change. They don’t own their house and sudden changes can make them feel very insecure in their home - whether you have a friendly discussion about these changes or not. They will inevitably feel unsettled.
I know this because I have been through this myself. So usually when I find a property with tenants in it already I usually request that the landlord ask them to leave. Sometimes they would ask me to help them with the evictions and to that my answer is also “no”. I wasn’t involved in the paperwork and I don’t know what their deal entails so I can’t get involved in that. But as soon as they are out I can take over and make the landlord’s life much easier.
To find out more about fully tenanted properties and why they are not ideal for Rent to Rent, watch our short video
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