Can I sell with Tenants leasing?
- Thread starter rachels
- Start date
You can sell with tenants in place, however you are cutting down your potential pool of purchasers, as any potential owner-occupiers will not be interested unless they get vacant possession
It might be ok if you sell and your lease only has 2-3 months to go - as then vacant possession becomes an option as well by the time settlement arrives.
I'm looking for an IP in Ballarat and for me those with good tenants in place (a surprising number being advertised) is a small plus - no letting fee, rental income from settlement and, most importantly, you know the rent you'll be getting, rather than having a figure in mind and perhaps not getting it. It might be different of course for a property with reno or subdivision prospects but I'm looking at no-work-needed buy-and-hold properties.
yes you can sell them with tenants in place.
i recently bought 1 IP with tenant in place. It gives me rent from settlement date, no letting fees and I know before hand the rental history of the tenant.
If tenant is not good, I can start looking for another one.
good luck with your sale.
regards,
tv
i recently bought 1 IP with tenant in place. It gives me rent from settlement date, no letting fees and I know before hand the rental history of the tenant.
If tenant is not good, I can start looking for another one.
good luck with your sale.
regards,
tv
I'm about to put three on the market all with tenants in them - 1 in Bendigo and the other 2 in Gympie. There is a process of notifying tenants and correct process. Seek advice from your state's equivalent to the RTA
Coming back to this subject, if I put the place on the market now and the tenants 1 year lease expires in March, then I would presume that if someone does buy it and it settles before that date the tenants are allowed to still stay there until the lease expires?
But if the house was sold say in the middle of Nonmember and it settled in December then the new owners would be able to give them the required 30 days notice so they must vacate the date the lease expired if that is what the new owner wanted?
Also, regarding the property maintenance, the gardens, lawns etc are in bad shape and I must go and spend a few days cleaning them up. The tenants are not happy about me selling it as they want to stay there. They even said they hope I don't sell it so I'm worried they will not help keep it maintained and tidy so it puts the prospective buyers off. At the same time I don't want to find new tenants as they pay good rates and it's not that easy to find tenants there.
But if the house was sold say in the middle of Nonmember and it settled in December then the new owners would be able to give them the required 30 days notice so they must vacate the date the lease expired if that is what the new owner wanted?
Also, regarding the property maintenance, the gardens, lawns etc are in bad shape and I must go and spend a few days cleaning them up. The tenants are not happy about me selling it as they want to stay there. They even said they hope I don't sell it so I'm worried they will not help keep it maintained and tidy so it puts the prospective buyers off. At the same time I don't want to find new tenants as they pay good rates and it's not that easy to find tenants there.
If you are worried, go and clean up the yard and then get a garden contractor to go in and maintain the garden, while it is for sale. A clean yard makes a better impression while selling.
when your solicitor draws up the contract it will either be for vacant possession or with a lease in place, and the purchaser must also abide by the existing lease (at least, that is what I understand)
Have you asked your tenant if they are interested in buying the property from you? I know a number of people who have either bought their rental property, or sold it to the tenant. If they like it, they might want to buy it so that they can stay there....
Have you asked your tenant if they are interested in buying the property from you? I know a number of people who have either bought their rental property, or sold it to the tenant. If they like it, they might want to buy it so that they can stay there....
yeah I have been cleaning the yard myself. The tenants just stood around watching. 
besides that though they are good tenants.
Penny, yes I asked them but they have no idea, they think only millionaires can buy property, I can't change their mindset. I tried to explain they might be able to give it a try and get the FHOG etc.
Anyway I have been thinking that I might need to have the place vacated to sell it. I have put it on the market but it is getting comments about it been small. The only reason though that it seems small is that the tenants have so much junk and stuff. Even the garage is loaded to the rim with all of their crap which is just old mattresses etc. I tried to hint they could sell it etc but again they say they don't know how... The people inspecting are only seeing what it looks like when it's jammed full of junk. It looks totally different when vacated.
As much as I would like them to stay I have to seriously consider that it might be better to have them leave. I know the lease expires in about 6 weeks. I could then move in myself and I can then spend a lot more time making it better as I stay and having it always looking great. I lose money yes as it will mean I will lose my rent income and that is higher than I pay for the place i rent now but if I sell it within a few months the loss will be small. The only downfall is that the new buyer might prefer to know it will be tenanted and they are paying slightly above market value for rent now.
They already know they would have to leave if the new owner wants to live in it etc but they also know there is a good chance that they would be able to stay on if an investor brought it.
What I would like to know is, do I have to have a reason to ask them to leave at the end of the lease period in 6 weeks time or am I obliged to let them stay on and continue renting if they have not done anything wrong like not paying rent on time etc which they have always paid. Don;t get me wrong, I understand that it would not be nice for them to move since they love living there but I have to think of myself as I really need to sell the place.
besides that though they are good tenants.Penny, yes I asked them but they have no idea, they think only millionaires can buy property, I can't change their mindset. I tried to explain they might be able to give it a try and get the FHOG etc.
Anyway I have been thinking that I might need to have the place vacated to sell it. I have put it on the market but it is getting comments about it been small. The only reason though that it seems small is that the tenants have so much junk and stuff. Even the garage is loaded to the rim with all of their crap which is just old mattresses etc. I tried to hint they could sell it etc but again they say they don't know how... The people inspecting are only seeing what it looks like when it's jammed full of junk. It looks totally different when vacated.
As much as I would like them to stay I have to seriously consider that it might be better to have them leave. I know the lease expires in about 6 weeks. I could then move in myself and I can then spend a lot more time making it better as I stay and having it always looking great. I lose money yes as it will mean I will lose my rent income and that is higher than I pay for the place i rent now but if I sell it within a few months the loss will be small. The only downfall is that the new buyer might prefer to know it will be tenanted and they are paying slightly above market value for rent now.
They already know they would have to leave if the new owner wants to live in it etc but they also know there is a good chance that they would be able to stay on if an investor brought it.
What I would like to know is, do I have to have a reason to ask them to leave at the end of the lease period in 6 weeks time or am I obliged to let them stay on and continue renting if they have not done anything wrong like not paying rent on time etc which they have always paid. Don;t get me wrong, I understand that it would not be nice for them to move since they love living there but I have to think of myself as I really need to sell the place.
It is possible to give notice without cause within the confines of the lease so that you get vacant possession when you put it on the market. By the sounds of it, the property will be more attractive to both buyers and investors if sold vacant possession as they wouldn't need to use their imagination to see around the junk.
thanks for the feedback, yes I have to seriously consider it now, I'm glad to here I can move them on after the lease has expired.
yup...in this market relying potential buyers to use their imagination to visualise what can be without tenants +furniture is risky. Make it easy for them and have it vacant.
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