The Myth: A Tenant in Situ is Always a Problem to Avoid
Many buyers avoid properties with sitting tenants out of fear. In reality, a good tenant already in place can be a significant advantage — removing void risk and potentially allowing immediate mortgage income stress tests.
Vacant possession is often seen as the ideal scenario for a buy-to-let purchase. But for an investor buying purely to rent, a property with a good sitting tenant already in place on a fair Assured Shorthold Tenancy can be a genuine advantage.
A sitting tenant eliminates the immediate void period cost (typically 4–6 weeks of lost rent plus letting agent setup fees of 6–10% of first year rent). For buy-to-let mortgage purposes, some lenders will accept the existing tenancy agreement as proof of rental income, streamlining the affordability assessment. The key due diligence is reviewing the tenancy agreement, rent payment history, and deposit protection compliance. A long-standing, rent-paying tenant in a well-maintained property is an asset, not a liability.