Auction properties come in all shapes and sizes. They can be tenanted or vacant and you need to do your research to avoid any nasty surprises. For an investment property, having a tenant in place can be great but, of course, that depends on who that tenant is and whether they are reliable with their rent.
- Introducing Andy Thompson from SDL Auctions
- What Steps Should I Take Before I Buy A Property At Auction?
- How Do Property Auctions Work?
- What Is A Reserve Price?
- What Exactly Is In The Legal Pack?
- What Is Off The Wall Bidding?
- Does It Matter Where I Sit?
- Auctions Fees | What Are The Costs To Buyers And Sellers?
- How Do I Prepare For A Day At House Auction?
- Are Auction Properties More Commonly Vacant Or Tenanted?
- What Are The Risks When Buying A Property At Auction?
- How to Find and Work With Good Property Auction Houses
Will Investment Properties Bought At Auction Be Tenanted?
Amy: So, if you are buying an investment property at auction, will it usually come empty or can you buy it tenanted? And can it become a nightmare if you do buy it tenanted?
Andy: Yeah, it can be but no, often it’s fine. At auction, you will get the good, the bad and the ugly. You get everything. You can get the absolute dream property and you can get the absolute worst property.
It’s the same with tenants. You can get dream tenants and nightmare tenants.
So, again, I keep banging on about it but it’s about doing your research. Do your homework. Do your due diligence.
Often, for a landlord or a would-be landlord, buying a property with a tenant in place is great but buying property with a bad tenant in it, obviously, isn’t so great.
So, that factor has to form part of your research process. So if the property’s tenanted and that’s what you want, you need to make sure you check that the tenants are still there, for a start.
And you need to check with the seller, the auctioneer or the agent that the tenants are paying. Because the last thing you want to do is inherit a bad tenant that you’ve then got to go and remove.
But if you get a good one, there are no voids and the day you get your keys is the day you start getting paid.
You won’t have to pay a letting agent to find your tenants and your investment kicks off the minute you get the keys.
So, again, there’s good and there’s bad but you need to make sure you do your due diligence.
Amy: Due diligence is always the key, it seems. Thank you.