Selling tenanted property?

[Tiggy]

I have been reading this forum sporadically over the last few years and found it very interesting. Finally got around to joining up as I have a few questions. Can you put a property up for sale while there are tenants living there with a lease in place? If yes, is the new owner of the property legally bound to continue with this lease until it ends?
(Apologies in advance if this has already been covered. I attempted to do a search, but my technological skills are a little lacking and I am a novice.)

 

[jrc]

Yes. Instead of selling the property with vacant possession it is sold subject to the existing tenancy.
Yes. Purchaser is bound to honour the agreement.

 

[Tiggy]

Wow. That's quick service! Thanks so much for that.

 

[RumpledElf]

You might be limiting your market though.

I had heaps of people interested in my old house, as soon as they realised it had tenants (it said it in the ad, some people apparently can't read) they ran away screaming.

I eventually sold it to an investor.

 

[SeafordSunshine]

Dear Tiggy

I sold one house with a tenant in it (a subdivisible block) and it had one open for inspection, four parties through and one (good) offer.
The tenant was on an expired lease, I offered with VP or with (rent)money coming in.
The tenant had the house looking brilliant for the one open for inspection, and although they have decided to move on I have not shown prospective tenants through until she vacates.
Just as a little 'thank you' for her co-operation
Every one won
cheers Seaford Sunshine

 

[Tiggy]

It is so nice to hear about someone who treats their tenants well. Having lived in fairly awful rental houses all my childhood, I know how difficult it is for many tenants. Even though I now have an IP I like to keep that in the back of my mind.

 

[kathryn d]

It is so nice to hear about someone who treats their tenants well. Having lived in fairly awful rental houses all my childhood, I know how difficult it is for many tenants. Even though I now have an IP I like to keep that in the back of my mind.

Don't be too nice ..or they will walk all over you.
I think most LLs are nice, until the tenant does something wrong....but of course, I'm biased.

After a while you harden up.

 

[Tiggy]

So far we have been lucky with all our tenants in both IP, but I am know there may well be issues with others down the track. I guess that's the risk you take as a LL and why property managers and LL insurance are essential.