Problem Tenants: Acquiring High-Yield Assets Cheaply
Dealing with rent arrears and evictions is a landlord's worst nightmare. But buying a property *with* a nightmare tenant in situ is a brilliant way to secure a heavy discount from an exhausted seller.
A tenant stops paying rent and refuses to leave. The legal eviction process (Section 8 or Section 21) can take months, causing the landlord immense financial and emotional distress.
An exhausted landlord is a highly motivated seller. You can offer to buy the property 'Subject to Tenancy', taking on the legal headache of the eviction yourself. Because you are solving a massive problem, you can demand a 15-25% discount on the purchase price. Once you complete the legal eviction process—which is a systematic, administrative task for a good solicitor—you are left with a vacant, deeply discounted asset ready for refurbishment and remarketing at a higher rent.
The Mindset Shift
Don't be afraid of bad tenants; price the risk. If an eviction costs £3,000 and takes 6 months, but secures you a £30,000 discount on the house, you are being paid handsomely to handle paperwork.