buying a property with tenants lease with me

hi guys i'm in the stages of purchasing my investment apartment, I note the tenants have a lease till july 2011, and if I were to settle prior to that date I would keep them on with the agents. But after July am I allowed to approach the tenants directly and get them to sign with me bypassing the agents? any legal ramifications?

cheers
 
hi guys i'm in the stages of purchasing my investment apartment, I note the tenants have a lease till july 2011, and if I were to settle prior to that date I would keep them on with the agents. But after July am I allowed to approach the tenants directly and get them to sign with me bypassing the agents? any legal ramifications?

cheers

At settlement you can choose who manages your IP whether that be the current agent a new agent or yourself, regardless of when the lease ends. At settlement if yuo decide to mange it the current property manager will hand over all relevant documents including current lease
 
Hi

No legal ramifications. As the new owner, you will need to complete a new Property Management Agreement with your current property manager. Simply date it to finish at the same time as your tenants lease. However, if you don't want your tenants to roll over to an ongoing tennancy (month to month) then you will have to make arrangements for your tenants to sign a new lease.

May I ask if you managed your own properties before? I have and I won't do that again. There's a lot of reading to do, to become familiar with all the, very specific, procedures you have to follow. Get them wrong and it can cost you a lot. To me, a good property manager is worth their weight in gold.

Cheers, Paul
 
hi guys i'm in the stages of purchasing my investment apartment, I note the tenants have a lease till july 2011, and if I were to settle prior to that date I would keep them on with the agents. But after July am I allowed to approach the tenants directly and get them to sign with me bypassing the agents? any legal ramifications?

cheers

Why dont you go to some real estate dealer. They have more practical approach and they will tell more about your confronting problem. :p
 
hi guys i'm in the stages of purchasing my investment apartment, I note the tenants have a lease till july 2011, and if I were to settle prior to that date I would keep them on with the agents. But after July am I allowed to approach the tenants directly and get them to sign with me bypassing the agents? any legal ramifications?

cheers

Manage it yourself from settlement there is nothing difficult about it,there is not much reading, all the stuff you need to know you will need to know as a LL anyway , you will still need to read sign and understand the lease agreement I dont know what Lofty is talking about I self manage 3 properties there is virtually nothing to it if you treat your tennants right and with respect, but if you have an atitude like kathryn and some other tightarses who wont even put fly screens on their houses you will enevitably have problems.
 
Manage it yourself from settlement there is nothing difficult about it,there is not much reading, all the stuff you need to know you will need to know as a LL anyway , you will still need to read sign and understand the lease agreement I dont know what Lofty is talking about I self manage 3 properties there is virtually nothing to it if you treat your tennants right and with respect, but if you have an atitude like kathryn and some other tightarses who wont even put fly screens on their houses you will enevitably have problems.

I'm glad I don't offense from personal attacks.:p

Might be a tightarse..but we are retired and living off rental income because of it.

How about you?
 
Hi Dagg3R,

Completely your choice and you don't need to wait until the lease ends - however I'm not sure if you need to comply with the management agreement in place which might have a notice period (the minimum in Qld is 30days but the agents generally type 90days in their paperwork and I then change it to 30 and initial). I've been debating about managing my local properties myself because Paul & Karen Dobson (above) are correct - good PMs are like gold and I haven't been able to find a good one. However, I have appreciated at times having a third party involved at times.

At this stage I'm considering getting my agent's licence (for multiple purposes) which if I do, will take over my own properties from July onwards and potentially even buy a small rent roll (agents trade them) to make it worthwhile.

If you have interstate property - despite occassionally having issues I still prefer to have a local PM to the property.

If this is your first IP I'd recommend in your situation starting with the agent for at least 6 months, maybe get thru the first process of getting new tenants and then decide whether you want to take it on yourself. Just make sure you change that clause of notice to the minimum time frame, get a copy of all photos, correspondence and inspection reports they have on file while you are good terms with the agent.

All the best either way.

Meg
 
I'm glad I don't offense from personal attacks.:p

Might be a tightarse..but we are retired and living off rental income because of it.

How about you?

So do you want a medal, Kathryn? Any-body can live off rental. I could if I want. but that is really boring. I prefer to use the equity(and get greater returns) as there is so many exciting oportunities out there in many other areas, so I take them when they appear. I need to have a bit more stimulation in my life than merely collecting propertties. Money is nothing, I lived without it very happily best years of my life, Also tried retiring a couple of times, but that gets very dull very quickly you dont get that forfillment satisfaction or sense of acheivement that makes you feel the day has been wortwhile. It was ok at 30 but sitting on a beach drinking all day does not appeal to me any-more. I have a large house I dont even charge any rent for, it houses abandoned and orpaned kids and I am planning on doing some minor renos and will have some disabled people there too, even paid for some of the kids schooling the joy and gratitutde of those kids is worth far more than any rent and I am still making money out of capital growth. I could live of that house alone. As I think Lawsy said the man who wears the biggest hat has the least cattle. I beleive property is for storing wealth, not purely to line the pockets of greedy lazy selfish investors. By the way I never called you a tight **** but obviously you decided the cap fits.
 
I have a large house I dont even charge any rent for, it houses abandoned and orpaned kids and I am planning on doing some minor renos and will have some disabled people there too, even paid for some of the kids schooling the joy and gratitutde of those kids is worth far more than any rent and I am still making money out of capital growth.

Very inspiring. Well done, I would be proud to have accomplished the same. It is great to see so many wonderful stories on here. :)
 
So do you want a medal, Kathryn? Any-body can live off rental. I could if I want. but that is really boring. I prefer to use the equity(and get greater returns) as there is so many exciting oportunities out there in many other areas, so I take them when they appear. I need to have a bit more stimulation in my life than merely collecting propertties. Money is nothing, I lived without it very happily best years of my life, Also tried retiring a couple of times, but that gets very dull very quickly you dont get that forfillment satisfaction or sense of acheivement that makes you feel the day has been wortwhile. It was ok at 30 but sitting on a beach drinking all day does not appeal to me any-more. I have a large house I dont even charge any rent for, it houses abandoned and orpaned kids and I am planning on doing some minor renos and will have some disabled people there too, even paid for some of the kids schooling the joy and gratitutde of those kids is worth far more than any rent and I am still making money out of capital growth. I could live of that house alone. As I think Lawsy said the man who wears the biggest hat has the least cattle. I beleive property is for storing wealth, not purely to line the pockets of greedy lazy selfish investors. By the way I never called you a tight **** but obviously you decided the cap fits.

Umm WTF. It is very honorable that you are being generous with your property, but to be knocking someone down because they have retired from rent returns instead of continuing to work and not collecting rent for some properties?

Is this still a property investment forum?

Also, since when was property investing the easy path?

Now everyone, let's go back to listening to Lawsy talk about the struggles of Aussie families before he packs up his golden microphone, jumps into his Rolls Royce and drives back to Wooloomooloo wharf to his apartment which is next to Russell Crowe.
 
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