Buying a property comes with both advantages and disadvantages. This article will discuss the advantages and disadvantages of buying a property with existing tenants to help you figure out whether it is a right approach for you or not.
Advantages & Disadvantages of Investing in a Property with Existing Tenants
Advantages of Buying a Property with Existing Tenants
1. No Need for Extra Investment
One of the major selling of a real estate property with existing tenants is that you won’t have to spend extra money on refurbishing or painting the house. That’s why if you have a tight budget, you should go for this type of real estate property.
2. Immediate Cash Flow
When you buy a real estate property with existing tenants, rental also comes with it. Besides, finding a suitable tenant isn’t an easy task. You’ll have to list your property on the rental websites. Moreover, you might have a real estate agent, and for that, you’ll have to pay extra money. But property with existing tenants doesn’t come with these problems. You’ll be able to generate money right after buying the property.
3. No Need Worry about the Legal Requisite
You might not be able to rent your property right after buying it. Your property will have to meet a number of local codes and standards before renting it out. Without meeting the certain requirements, you won’t be able to rent your property. But when you invest in a property with existing tenants, you won’t have to face such issues because the property has already met all those legal requisites.
Disadvantages of Buying a Property with Existing Tenants
1. Removing Tenants Won’t be an Easy Task
At some point, if you want to remove the existing tenants from your property, it won’t be easy. It can take months to remove the existing tenants from your property. Besides, for this, you’ll have to give lengthy notice periods and, in most cases, you’ll have to fill complicated paperwork. Moreover, you may need a lawyer.
If you have a tight budget and want to generate money right away, you can buy a property with existing tenants. However, you must check all the legal paperwork and inspect the house properly.0