Selling with tenant, has anyone reduced rent in return for tenant cooperation?

[RumpledElf]

Don't like they should buy their own place simple!

As soon as the hordes of investors turned up, I found a house, bought it, broke the lease and moved out soon after it sold.

Must have annoyed the new landlord, self and housemate were boring government employees, looking after the house and paying the rent on time, and it was in a low socioeconomic area (in SA the largest defense employer is in the middle of a 'bad' area and very few people who work there live near it) so the vast majority of rentals in the area were inhabited by serious feral riffraff. The short time I lived there there were a few shootings, a house on my street was burnt down as revenge and I got woken up by the police doorknocking for various criminals. Most houses had the typical car seats on the veranda, sheets for curtains and a few car bodies up on blocks in the front yard. But hey, it was a 10 minute walk to work and the rent was really cheap. Finding a rental in that area was really painful, they treated you like a 3rd class citizen no better than dirt under your shoe and you had to sign the lease before you were even allowed to look at a house. So the behaviour of the agent was pretty normal, really. Renters are complete scum, so treat them like the scum they are.

I take solace in the fact that the new owner would have had a 90% chance of having far worse tenants than we were.

 

[DaveM]

Offering a discount for key access/open house is OK, I would not offer a discount for by appointment only sales since there is far less inconvenience.

Just be aware that under the new consumer credit changes and overall bank lending, many lenders are now asking for a copy of the rental ledger for the tenants and not just the signed lease.

I had to supply this on the IP I just bought (even though the tenants were moving out during settlement). The broker said that there have been a number of both IP buyers and also sellers doing dodgy rental agreements to ficticious people to increase their borrowings or to show inflated past returns.

A lower ledger amount than the signed lease may cause some alarm bells to ring with some lenders.

 

[BV]

Just be aware that under the new consumer credit changes and overall bank lending, many lenders are now asking for a copy of the rental ledger for the tenants and not just the signed lease.

A lower ledger amount than the signed lease may cause some alarm bells to ring with some lenders.

Dave no worries mate the rental ledger is in good order and the lease shows a market rent. The rent reduction is not linked to the lease and ends when the sale becomes unconditional.
The agent has drafted a special letter for the reduction and I'm attaching a modified version of it here.

 

[kiwipaul]

I'm planning on selling my investment property when my tennant moves out and as they are only obliged to give me 21 days notice I couldn't sell it within this time frame.

SO I have proposed to my tennant I will give her 1 weeks rent for every weeks notice she gives up to 8 weeks AND I sell the house within this period.

Example Gives me 8 weeks notice I pay them 8 x weekly rent.

This gives the tennant every incentive to actively assist the agent to sell the house and I keep recieving rent right up to the time I sell. If I cannot sell the property during this time they get nothing and I will re rent.

Also this cost would be tax deductable as it's a cost of selling property IMHO.

I cannot see a downside to this everyone wins.

 

[BV]

I'm planning on selling my investment property when my tennant moves out and as they are only obliged to give me 21 days notice I couldn't sell it within this time frame.

SO I have proposed to my tennant I will give her 1 weeks rent for every weeks notice she gives up to 8 weeks AND I sell the house within this period.

Example Gives me 8 weeks notice I pay them 8 x weekly rent.

This gives the tennant every incentive to actively assist the agent to sell the house and I keep recieving rent right up to the time I sell. If I cannot sell the property during this time they get nothing and I will re rent.

Also this cost would be tax deductable as it's a cost of selling property IMHO.

I cannot see a downside to this everyone wins.

Paul
Why sell when they move out?
Are they messy tenants?

 

[kiwipaul]

Paul
Why sell when they move out?
Are they messy tenants?

Property is in Auckland NZ, I live in Brissy just getting too complicated.