Buying a tenanted property and wanting to live in it

[firstie]

Hello somersoft!

Apologies if this has been covered before- my search skills are not great!

I am currently looking for a property to live in. I understand that if a property has a current tenancy agreement it gets transferred over to the new owner.

Is there anyway around this? Is it ethical to offer the tenants $X to move out and terminate their lease?

Or should I just not even look into currently tenanted properties?

THank you!

 

[Goofy]

you can offer, but they have the right to refuse!

either look for a property being offered with vacant possession or look for a property whereby the lease is ending around the time of settlement (and make sure the appropriate NTV is served on the tenants!)

Good luck with your search!

 

[attrill]

If the tenants have a lease in place it can't be terminated due to change in ownership. The lease transfers to you and if you and the tenant want to renegotiate it you can. You could offer to pay all their costs to move or offer a sweetener, but if they are happy and want to see out the lease there's not a lot you can do.

 

[Aaron_C]

Not sure about Sydney - but the new owner can terminate a lease for the purposes of moving in - but you have to give at least 60 days notice to the tenants.

 

[porp_e]

Not sure about Sydney - but the new owner can terminate a lease for the purposes of moving in - but you have to give at least 60 days notice to the tenants.

I don't think this applies if the tenants are on a fixed term lease? If they are on periodic however you can give them notice to move out.

 

[SeafordSunshine]

Dear Firsty tenanted property

Congratulations on working towards getting your own home!
You do have to start somewhere!
Could I suggest
1. ask your solicitor for vacant posession (this means the house will be empty by the time you get the keys, and have paid for it)
2. ask your solicitor to ensure notice to vacate is served on the tenants (in writing to coincide with settlement when you exchange contracts. (Exchange is where you give the sellers 10% of the price of the house)
Cheers
Seaford Sunshine

 

[Aaron_C]

I don't think this applies if the tenants are on a fixed term lease? If they are on periodic however you can give them notice to move out.

Nah it applies no matter how long the lease is, whether it's fixed or periodic.

 

[Kristine..]

No, Aaron, it doesn't

 

[Aaron_C]

My mistake. http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Forms_Residential_Tenancy/$file/NoticeToVacateRT.pdf

 

[Ed Barton]

Hello somersoft!

Is there anyway around this? Is it ethical to offer the tenants $X to move out and terminate their lease?

absolutely is ethical and depending on the offer the tenants may jump at the opportunity. imo it should be a cost of the vendor though.

 

[DaveM]

absolutely is ethical and depending on the offer the tenants may jump at the opportunity. imo it should be a cost of the vendor though.

Yep. If the tenants know that they have to move anyway at end of lease, they may take the $ if it means it doesnt cost them a lot to move.

THe "norm" (if there is one, just going on what I have seen) is 2-4 weeks rent free plus moving costs (eg $500-1000) to cover truck, utilities etc.

 

[Ed Barton]

Yep. If the tenants know that they have to move anyway at end of lease, they may take the $ if it means it doesnt cost them a lot to move.

THe "norm" (if there is one, just going on what I have seen) is 2-4 weeks rent free plus moving costs (eg $500-1000) to cover truck, utilities etc.

i wondered if there was a 'norm' and what it was. i had a friend (tenant) who several years back had a long time to run on a lease and negotiated around 5k from memory.