Management Property from a distance ...

[ml320]

Hi

I was wondering if some astute investors can she dsome light on a few questions which I have.

I am about to settle on a property in Dalby, QLD (IP). I reside in Canberra pls don't hold that against me and no - I don't work for the government
The tenant was previously managed by the landlord - initially I thought that the tenant wanted to stay - so I thought the transition would be relatively simple however, my solicitor has informed me today that the tenant wishes to leave property on the 31st March (day of my settlement). I am assuming that there is no bond. However my concerns are that the tenant can pack and leave without cleaning the property - which will make it extremely difficult for me to get it cleaned. besides why should the new owner cop this ?

Has anyone got any suggestions regarding any strategies I can implement ? Can I advice my solicitor to inform the other party that unless the property is clean that settlement will be delayed ?

Guys your support will be appreciated.
Thanks
LK

 

[GoAnna!]

I would start with checking out if there is a bond. Can you delay settlement a few days so that the pre settlement inspection can take place after the tenant leaves? Will you be using a PM? If so get them involved RIGHT NOW and they can take care of the tenant / bond / cleaning issues for you.

 

[ml320]

GoAnna

Yes I will be using a PM for the property
I will also check out if there is a bond and get the PM involved ASAP
Thanks
LK

 

[marg4000]

The tenant's rental agreement is with the present owner, and I would not imagine you can have any effect on returning the bond (if there is one). The landlord will have the condition report (if any) that states the condition of the house when the tenant started. For all we know, the house may have been in poor condition then.

As the landlord was self managing then he will have the sole right to sign the bond release form, unless you provided differently in the sale contract.

You cannot add clauses to the contract once it is signed, unless the vendor agrees. Should you wish to delay settlement then the vendor has to agree, and you may also face extra costs. As a good clean should cost around $100, I don't think it worth it.

Sadly, most houses are sold "as is" and the departing owners are under no obligation to leave the house pristine - bearing in mind that cleanliness is in the eye of the beholder. I've never yet bought a property that does not need some elbow grease (in my opinion)! Believe me, I've seen some doozies. I consider myself lucky if they remove all their rubbish. And don't get me started on the condition of the wheelie bins!!!!

At worst, your new PM will be able to arrange a cleaner for you, which is what we have had to do on a couple of occasions.

It is in your own interests to ensure that your tenant goes into a clean house, as tenants are required to leave the house in the condition it was in when they entered it.

The pre-settlement inspection is simply to ensure that the house is in the same condition as when you signed the contract to purchase and that any inclusion in the contract is in place.

Marg

 

[GoAnna!]

The lease lies legally not with the property owner but the property itself. Therefore the bond is also transferrred with the transfer of ownership. (in whatever capacity bonds are held in QLD)

It would be much tidier to have the tenant exit sorted out prior to settlement if at all possible.

The reason it needs to be sorted is that there are two issues here.

One is transfer of ownership of property from one owner to another.

Another is vacating tenant.

Given they are taking place on the same day it needs to be co-ordinated properly. What if you pay the full settlement amount on the current agreed date but make no arrangements in regards to the bond etc and the tenant either does not vacate at all (and you are left holding no bond) or the tenants causes damage on the day of settlement (again you have no bond). It may be as simple as some cleaning would could also happen in any property settlement or it may turn into a more complex tenant issue. Better to plan for the worse and be pleasantly surprised when it all turns out well.

A PM should sort the bond, condition report etc.

I have personally delayed settlement when the owner was not able to provide a satisfactory tenant handover (in my case lack of agreement between vendor and tenants as to whether they were behind in their rent or not). It is not right that you should inherit the current owners issues.

Best of luck!

The tenant's rental agreement is with the present owner, and I would not imagine you can have any effect on returning the bond (if there is one). The landlord will have the condition report (if any) that states the condition of the house when the tenant started. For all we know, the house may have been in poor condition then.

As the landlord was self managing then he will have the sole right to sign the bond release form, unless you provided differently in the sale contract.

You cannot add clauses to the contract once it is signed, unless the vendor agrees. Should you wish to delay settlement then the vendor has to agree, and you may also face extra costs. As a good clean should cost around $100, I don't think it worth it.

Sadly, most houses are sold "as is" and the departing owners are under no obligation to leave the house pristine - bearing in mind that cleanliness is in the eye of the beholder. I've never yet bought a property that does not need some elbow grease (in my opinion)! Believe me, I've seen some doozies. I consider myself lucky if they remove all their rubbish. And don't get me started on the condition of the wheelie bins!!!!

At worst, your new PM will be able to arrange a cleaner for you, which is what we have had to do on a couple of occasions.

It is in your own interests to ensure that your tenant goes into a clean house, as tenants are required to leave the house in the condition it was in when they entered it.

The pre-settlement inspection is simply to ensure that the house is in the same condition as when you signed the contract to purchase and that any inclusion in the contract is in place.

Marg

 

[toony]

Hi

However my concerns are that the tenant can pack and leave without cleaning the property - which will make it extremely difficult for me to get it cleaned. besides why should the new owner cop this ?

Has anyone got any suggestions regarding any strategies I can implement ? Can I advice my solicitor to inform the other party that unless the property is clean that settlement will be delayed ?
LK

As mentioned before you buy 'as is'. As for cleaning just get the new PM to find a cleaner. I would be more concerned about a pre-settlement inspection. You could settle and find the kitchen has disappeared. But i only buy local so i dont have these issues.

 

[skater]

As mentioned before you buy 'as is'. As for cleaning just get the new PM to find a cleaner.

This really is a minor issue. If it is dirty, like Toony said, just pay to get it cleaned.

 

[josko]

Go with GoAnna,

If there is Bond and a Rental Agreement, leave the property with the existing PM until they ahve done the inspection. The Pm will charge the tenant cleaning fees or give them the option to clean themselves if it is not clean.