Bought a property at auction without details of existing tenant?

Good news - you got a property for less than 50k. Bad news - the tenant situation is unclear

If the agencies aren't communicating, that probably means it's a bad tenant. No big deal, but it needs to be handled correctly.

Others have advised you to visit in person. I would recommend speaking with eviction professionals like Paul Shamplina before you speak with the tenant.

This can be resolved and you will have found a bargain (hopefully) but it's just going to take some time. And probably a bit of a refurb if the tenant lives messy.

Get professional guidance. They will help your court case to run smoothly if it comes to that. Hope for the best but plan for the worst

I'm sure you'll do well with this deal. It may just take time before this deal starts paying out. What's the yield if rented at full market value? What area is it?

Reply to the comment left by Robert Sled at 14/11/2024 - 18:11
Accrington? I expect a 10% yield.

Reply to the comment left by Mike O'Sullivan at 14/11/2024 - 21:00
10% is a great yield. An eviction specialist will make sure you ask the right questions when you contact the tenant. It may be possible to collect LHA direct from the council during the eviction process if it comes to that. But you will need to know who is inside the property. Can't claim without tenant details. It's a great price, so hopefully it will all work out well eventually. I'm guessing you have been a landlord previously so you know this can take months or even more than a year and you have to have everything right or the court may decide against you?

Reply to the comment left by Robert Sled at 14/11/2024 - 22:02
no, I'm new to this. Thats my problem.

Reply to the comment left by Mike O'Sullivan at 14/11/2024 - 22:22
Oh. Right. Well first step go into the office of the agent who is managing the property. They can't ignore you if you're standing in front of them. Second step speak with an eviction specialist about what you should do next. Third step, speak to the tenant AND NEIGHBOURS if possible. Find out who is inside that property and if they're willing to pay rent direct to you. Old contracts between the previous landlord and their letting agency are unlikely to bind you, so if they say you have to contiinue using their services politely ask to see where that's in the contract along with evidence that a contract you haven't signed is actually binding on you. If you didn't agree to have them manage the property, I would be surprised if it bound you. Of course, you may want them to manage it, but you may not want them to if they have given you a duff tenant. Seek a guarantor. Has the tenant provided one? If so, get a copy of their details along with any AST the tenant has with that agent. Always be friendly. Remember you're now working in customer service. your tenant is a customer. Good relations will go a long way in keeping this relationship working smoothly.

be friendly to the agent. They don't want a duff tenant messing up a property. They aren't happy if you have a bad tenant. It's not neccesarily their fault.

Worst case scenario is you pay a professional eviction specialist company to get this property back and you have to give it a refurb. If it needs a refurb, this is where DIY skills will come in helpful. Always get multiple quotes and be very cautious working around electrics and watch out for asbestos and other dangers. Speak with AI like chat gpt as you work so it can warn you about dangers and methods to do repair jobs properly.

You got a bargain. This can eventually come good. But it may take a while. Write back if you need any advice. We're here to help

Reply to the comment left by Mike O'Sullivan at 14/11/2024 - 22:22
Eventually this property will get a new tenant, so when bringing in a new tenant, ALWAYS ALWAYS ALWAYS do proper references using Openrent or similar firms and consider having a guarantor or rent guarantee insurance. Peace of mind is good. I know this seems a while off now, but it will matter when the time comes.

Oh, one more thing - Some tenants have friends and family they can live with. For some, they may just be holding onto a property just for the sake of it even when they may have somehwere else they could move to. So I'll be blunt - Eviction can cost a year of lost rent plus a thousand or 2 in court and bailiff fees. With a refurb on top this can actually run you 10 to 20 grand. Why not skip the queue and just ask the current tenant if you can pay them to leave? Last time I paid someone £1,000 because he was spending most of his time at his new girlfriend's place and didn't want the flat. I told him I want it back clean and he gave it back spotless and took my £1,000. If it's a single person, moving is easy. If it's a family, you will have to offer more to be fair. A simple letter may be a good idea offering instant cash if they give back the keys. ALWAYS HAVE THEM SIGN THAT THE TEANANCY IS ENDED OFFICIALLY USING AN NRLA FORM AND CHANGE THE LOCKS IMMEDIATELY. IF YOU CAN MOVE A NEW TENANT IN FAST THAT WILL PREVENT THEM MOVING BACK IN. Remember too that it is illegal to squat in residential property now, so they have no squatters rights. Always get advice from a professional before taking action, but remember that eviction specialists are paid if they get to do their process, so don't be gullible. If they say theirs is the only way to do things, don't buy it. Cash for keys is common in the industry. But you must always change the locks instantly after it

Reply to the comment left by Robert Sled at 14/11/2024 - 23:14
Robert,

Thanks for all your help and advice, its greatly appreciated.

My personal circumstances are more complicated (for reasons I won't explain in public), but doing your practical suggestions isn't really an option for me.

For this reason, I am minded to put the matter in the hands of a solicitor and let them sort it out or am I better to use an eviction specialist instead?

Thanks.

Mike

Reply to the comment left by Toby Rolfe at 14/11/2024 - 16:31Maybe you should join the National Residential Landlords Association. They have a help line which is very useful as well as their site having all the legal documents you'll need to serve. You really need to go through all the documentation you have and then serve all the forms you need to. Make sure you have an up-to-date gas safety, electrical safety inspection certificates. At some point you'll need to do property inspection. There's a form you can serve on the tenant to give them notice that you'll be turning up and expect to be let in.

Reply to the comment left by Mike O'Sullivan at 14/11/2024 - 23:32
Using a solicitor is probably NOT the best way as most solicitors are of a 'genera' write a letter and hope type. Use a specialist eviction company as they know exactly what is needed and when. I used Landlord Action last time (Paul Shampalinas outfit and they are highly respected)

I agree to most of the wise words and comments above. I’m not sure why if you bought something that you can’t personally deal with but the answer particularly in the first two or three replies could yield very good results with minimal effort. If it gets nasty-definitely use an eviction expert.