Buying a Tenanted Property – Key Points to Consider

If you’ve ever wondered what the term ‘tenant in situ’ means in the context of homebuying, here’s a short and simple rundown.

A small, but rising number of homes* are hitting the housing market listed as having a tenant in situ.

While such properties won’t appeal to everyone, they offer real advantages for some buyers.

What does tenant in situ mean?

In property terms, it refers to a home occupied by a tenant or tenants at the time of its sale. Once the sale is complete, the new owner becomes the landlord and assumes all the associated legal responsibilities that role entails.

Who buys a tenanted property?

• People looking to start or expand a buy-to-let portfolio. As the property is already generating rent, you avoid the hassle of finding a tenant and start earning income as soon as you become the owner.
• Those who work in another city or country but expect to return to the area in the future. They don’t intend to live in the property straight away but anticipate occupying it at some point. In the meantime, the home is earning its keep.
• Buyers looking for a good deal. As it’s more complicated to buy tenanted properties, they tend to cost less (estimates range from 5 to 20% less).

The most important thing buyers need to know

If you take away one thing from this article, it’s that the law regarding buying a tenanted property changed in May this year with the introduction of the Renters’ Rights Act (RRA).

As a result, some of the information available online about the subject is now out of date.

So when you’re doing your research, check that what you’re reading was published after May 1, 2026, or at least reflects life after the RRA's introduction.

Be fully informed

Whether you intend to manage the property as a rental or reclaim possession and move in yourself, it’s important to understand that there are laws that you must follow.

These cover all sorts of areas, such as notifying the tenants that you are the new owner, dealing with deposits and meeting an array of safety rules.

It’s best to seek professional advice so that you cover all your bases; don’t leave anything to chance.

If you’re keen to expand your property portfolio or to take your first steps on the housing ladder, call us to learn more about the properties on our books.

*About 8,500 homes hit the market in England every year with a tenant in situ.

This article does not constitute legal advice.