10 Great Questions to Ask the Letting Agent Before Buying a Tenanted Property

Purchasing a tenanted property can be an excellent investment — especially when it comes fully managed and promises instant rental income. However, as seasoned investors know, the devil is in the detail. While a letting agent may present the opportunity as a "turnkey solution", buyers must carry out their own due diligence to verify whether the deal truly stacks up.

Here are 10 essential questions to ask the current letting agent before proceeding with the purchase of a tenanted property. These questions will help you uncover the real condition of the tenancy, assess tenant quality, and determine whether the deal is as solid as it seems.

1. Can you provide a copy of the full tenancy agreement?

This is a fundamental starting point. A legally binding tenancy agreement outlines the key terms between landlord and tenant — including rent amount, deposit held, length of term, notice clauses, and special provisions. Review it thoroughly for compliance with the Housing Act 1988 and ensure it aligns with Assured Shorthold Tenancy (AST) standards.

2. Is the tenant currently up to date with rent payments?

Many prospective buyers are told a tenant is "good" without verifying the payment history. Ask for a detailed rent statement covering at least the last 12 months. Are there arrears, late payments, or payment holidays that suggest risk? Financial behaviour tells you more about a tenant’s reliability than words ever will.

3. How long has the tenant lived in the property and do they wish to remain post-sale?

Stability of tenancy is key to reducing voids. If a tenant has been in situ for several years and intends to remain, this can offer valuable continuity. On the other hand, if they are planning to vacate, the “instant income” angle may fall flat. Letting agents should provide this insight transparently.

4. Was the tenant fully referenced and vetted before moving in?

You should request sight of the original tenant referencing documents, including credit checks, employment verification, previous landlord references, and right to rent checks. If the agent cannot supply these, it's a red flag. As you know from your own agency, tenant vetting is crucial to long-term yield success.

5. What is the monthly rent and how does this compare to current market value?

A common pitfall for buyers is inheriting tenancies with under-market rents. Ask the agent to provide local comparable evidence of similar properties. If the rent is significantly below market value, factor in how long the tenant has been in the property and whether there’s scope for a future uplift.

6. Is the deposit protected and where is it held?

The deposit must legally be registered within a Government-approved Tenancy Deposit Scheme (TDP). Request proof of protection, prescribed information, and scheme reference. Failure to comply with this requirement can lead to compensation claims — which would pass to you upon purchase.

7. Has the property been subject to any legal notices, evictions, or disputes?

This question helps to uncover any history of problematic tenancies, including Section 8 or Section 21 notices served, anti-social behaviour complaints, or rent tribunals. Even a currently compliant tenancy may have a chequered past that suggests future risk.

8. Is there a valid Gas Safety Certificate, Electrical Installation Condition Report (EICR), and EPC?

All legally required compliance documents should be in place and valid at the point of sale. Ask the agent for:

• A Gas Safety Certificate (renewed annually)

• EICR (required every five years)

• EPC (Energy Performance Certificate, valid for 10 years with minimum E rating)

Without these, you may inherit liabilities and enforcement risk.

9. What are the current property management charges and who manages the tenancy post-sale?

Understanding the ongoing cost of property management is vital to calculating net yield. If the same agent is offering to continue management post-sale, request a copy of their landlord service agreement, fees structure, and service reviews. Ensure their level of involvement aligns with your expectations.

10. What is your honest opinion of the tenant and property performance?

This open-ended question often yields the most insight. An experienced agent will give a frank assessment if they feel empowered to do so. Are the tenants cooperative? Do they maintain the property? Have there been any ongoing maintenance or nuisance issues?

Pay close attention to how confidently and clearly the agent responds. Hesitation, vague answers or deflection may signal issues they prefer not to disclose.

Final Thoughts

An investment property with tenants in situ can be a smart acquisition — but only if all facts align. By asking the above questions, you position yourself as a professional investor, ensure full transparency, and mitigate your exposure to inherited risks.

At 247 Property Services, we champion full disclosure, robust tenant vetting, and proper documentation to ensure every buyer is fully informed. Whether you're buying one home or a portfolio, our professional insight helps safeguard your investment from day one.