Finding a rental property in London that already has a tenant can be quite challenging for those interested in buy-to-let investments, a recent study suggests.
According to research by Benham and Reeves, only 2% of the properties on the market in London come with tenants already living in them.
Meanwhile, the North West leads the pack for having the most investment properties with existing tenants, boasting 21% of the total offerings in the country.
The South East follows with 16%, while Yorkshire and the Humber have 14%, the East Midlands 13%, the East of England 11%, and the West Midlands 11%, all providing a decent selection of such properties.
In the South West and North East, these opportunities are more scarce, making up only 5% each of the country’s total.
Marc von Grundherr, the director of Benham and Reeves, explains that not having tenants can reduce a property’s profitability due to prolonged vacancy periods. Therefore, properties that already have tenants are very attractive to investors since they allow for immediate income.
Despite London having the smallest percentage of these investment-ready properties, there shouldn’t be much concern. The rental market in London is unbalanced to the degree that any new listings are quickly filled, ensuring brief vacancy periods.
An investment property that comes with an established tenant can offer a smooth start, since it avoids the downtime of vacant periods and eliminates the expenses and efforts of finding a tenant, performing credit checks, and sorting out security deposits.
