Vacant Possession vs. Tenants in Situ: Which Property Purchase Strategy is Right for You?

Simon addresses a common question among property investors: whether to buy a property with vacant possession or with tenants in situ. The discussion highlights the pros and cons of both options, emphasising the potential benefits of purchasing tenanted properties, such as immediate rental income and the opportunity to increase rents over time. Simon shares personal experiences, including a case study of acquiring a tenanted HMO (House in Multiple Occupation) and successfully refurbishing it while keeping tenants happy.  KEY TAKEAWAYS When buying a property, consider whether to purchase with vacant possession or with tenants already in place. Each option has its advantages and disadvantages, such as potential rental income and the condition of the property. If buying a tenanted property, it's crucial to check the tenants' contracts, payment history, and the overall condition of the property. Ensure that all necessary checks were performed by the previous landlord, including deposit protection and compliance with safety regulations. When negotiating the purchase of a tenanted property, aim for a price that is 10-15% lower than what you would pay for a vacant property. This accounts for the lower rental income and the potential challenges of managing existing tenants. It is possible to refurbish a property that is fully tenanted. By communicating with tenants and providing temporary solutions, such as alternative cooking facilities, you can improve the property without requiring vacant possession. BEST MOMENTS "Most people, when they buy a property, normally it's going to have vacant possession where it's empty." "Buying a property with tenants in situ can actually be quite attractive sometimes." "You need to check the contracts that people are currently on to make sure they are correct contracts." "If you’re buying a tenanted property, you should be securing it 10 to 15 percent below what you would pay if it would be empty." VALUABLE RESOURCES To find your local pin meeting visit: www.PinMeeting.co.uk and use voucher code PODCAST to attend you first meeting as Simon's guest (instead of paying the normal £20). Contact and follow Simon here: Facebook: http://www.facebook.com/OfficialSimonZutshi LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/ Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk   pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way.  How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals. This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/