Buying a rental property with existing tenants ('subject to tenancy') provides rental income from day one but requires careful due diligence. Under the Renters' Rights Act 2025 (in force from 1 May 2026), Section 21 no-fault eviction is abolished � recovering possession from sitting tenants now requires a valid Section 8 ground or negotiated surrender.
Key change: no Section 21
You cannot buy a tenanted property and immediately serve a no-fault notice to quit. Recovering possession now requires a Section 8 ground (rent arrears, breach of tenancy, etc.) or negotiated surrender. Ground 1A (sale) and Ground 1 (own occupation) both require the tenancy to have been in existence for at least 12 months.
What you inherit on completion
- The existing tenancy agreement (as Periodic Assured Tenancy from 1 May 2026) � you cannot unilaterally change terms
- The existing rent level � any increase must follow Section 13 (Form 4A, 2 months' notice, once per 12 months maximum)
- All landlord compliance obligations: gas safety, EICR, EPC, smoke/CO alarms, deposit protection, Information Sheet
- Outstanding repair or disrepair obligations, including Awaab's Law damp/mould response duties
- Any existing deposit � must be re-protected in your name within 30 days if the scheme requires it
Pre-exchange due diligence checklist
- Tenancy agreement (confirm auto-conversion to Periodic Assured Tenancy)
- 12-month rent statement and formal arrears certificate
- Deposit scheme registration and Prescribed Information evidence
- Current gas safety certificate, EICR, EPC
- Smoke and CO alarm compliance evidence
- Mandatory HMO, additional, and selective licensing status
- Outstanding council enforcement notices or repair orders
- Right to Rent check evidence
- Information Sheet obligation status (served by 31 May 2026?)
Routes to recover possession
- Ground 8 (rent arrears � mandatory): 3 months' rent arrears at notice and court hearing. No 12-month wait
- Ground 1 (landlord or family to occupy � mandatory): 4 months' notice. Tenancy must have been in existence at least 12 months
- Ground 1A (landlord intends to sell � mandatory): 4 months' notice. Tenancy must have been in existence at least 12 months. Re-letting prohibited for 12 months after vacancy
- Negotiated surrender: Offer the tenant a cash incentive to vacate � lawful and often the quickest route to vacant possession