I would say its a small risk for me to pay. If i don't get the inflated price I want then I will continue to rent it for the year at a cost of $2,500 to me.
So why not spend the $2,500 on a reno that will get the $1,000 a week rent?
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I would say its a small risk for me to pay. If i don't get the inflated price I want then I will continue to rent it for the year at a cost of $2,500 to me.
To dodgy for me to contemplate.
If you did go through with this scheme you are going to have one unhappy buyer when he goes to renew the tenants lease in 12mths and your Tenant refuses to pay $1000 any more. I would think that he would consider a civil case against you. I most certainy would.
The property is currently gettin $850 a week. Properties that rent for $1000 are selling for more than 30k-50k than a comprable of my style of property. I just want to bump it up to $1000. Its not as if this is a low end property getting $300 and I am trying to inflate by more than 50%.
I should clarify, highest rental achievable is $850 for my property. Properties getting $1,000 per week are in better condition but not a better location.
*snip*
I'll leave the ethical or legal aside of this specific scenario and focus on the rent. When you are trying to appeal to the investor market having a property under rented is a mistake.I plan on selling my investment property within the next 3 months and my property is about to become vacated. It will most likley be purchased by another investor so is it worth me giving the next tenant a 12 month lease and $10,000 via a private deed in exchange for lifting the rent $150 extra over the market rent. The $7,500 will cover the increase and the other $2,500 will keep the tenant quite during the marketing process.
Looking at comparables this should easily add an extra 30k-50k in value.
I was wondering if this is illegal as this practice always goes on in commercial property.
Thanks
Wowzer... I hope I come across someone as yourself early in my overall business/investing life so that I can pick up on your dishonesty (and ignorance), so I learn to avoid doing business with people like yourself in the future.I should clarify, highest rental achievable is $850 for my property. Properties getting $1,000 per week are in better condition but not a better location.
Also the selling agent won't know, I won't tell him so there is no need for him to lie.
I would say its a small risk for me to pay. If i don't get the inflated price I want then I will continue to rent it for the year at a cost of $2,500 to me. If it sells at 30k-50k above market value to the investor then I think its $2,500 well spent.
There are no laws broken seeing as no one has pointed them out so I could not be sued.
I plan on selling my investment property within the next 3 months and my property is about to become vacated. It will most likley be purchased by another investor so is it worth me giving the next tenant a 12 month lease and $10,000 via a private deed in exchange for lifting the rent $150 extra over the market rent. The $7,500 will cover the increase and the other $2,500 will keep the tenant quite during the marketing process.
Looking at comparables this should easily add an extra 30k-50k in value.
I was wondering if this is illegal as this practice always goes on in commercial property.
Thanks
Fingers crossed that if you go ahead with your plan, you pay the tenant the extra $10K, and that you then fail to sell. This is most likely what will happen as a purchaser will go to the open house down the road and see what the extra money will actually get them.
Plan for it to be a long time on the market!
Maybe losing $10K will be a lesson you need to learn.
The property is currently gettin $850 a week. Properties that rent for $1000 are selling for more than 30k-50k than a comprable of my style of property. I just want to bump it up to $1000. Its not as if this is a low end property getting $300 and I am trying to inflate by more than 50%.
I still believe more savvy buyers would be able to see through the veil of higher rent.
True. But you only need one idiot to buy.
Have seen this attempted in commercial properties, generally by owner occupiers selling with lease back.