Vendor leasing property after completion

[James Bond]

Hi, I am considering purchasing a property in QLD which the vendor then wants to lease back from me for a few months after settlement.

Has anyone else done this, and are there any lessons learned that could be shared?

Many thanks.

JB

 

[yorkiefish]

hi james,
i did the same thing a few years back actually sold it to the agent marketing it and then she wanted to move in asap so did a 2 month lease and sold it her. no probs all signed up per se.

good luck just go thro all proper channels to cover yourselve. or get the agent to do all the necessary checks as with all tenancies just in case.....

thanks.wayne

 

[RPI]

No problems, just have conditions drafted in the contract.

It might look something like this:

"The Seller and the Buyer agrees that, prior to settlement, the Seller shall enter into a standard REIQ Residential Tenancy Agreement to lease the Property from the Buyer upon the following terms:
(i) Rental of $480pw
(ii) Bond of $1960
(iii) Term of 6 months
(iv) The Seller to have the premises fully professionally cleaned upon the end of the tenancy.
"

You may need some more conditions or less conditions. Above may not be right for you but you should seek your own legal advice and no reliance should be placed on above.

D

 

[Perp]

Unless there's some good reason why settlement has to be on a particular date, I would definitely prefer to defer settlement.

Why? Mainly due to disputes about condition. As a buyer you have a lot more power over a vendor - who wants you to settle - than you have as a landlord over a tenant.

Further, most IPs are negatively cashflow - you wear a small loss each week in the hope that the capital gains outweigh it. If you can lock in a price and the vendors are willing to extend settlement for the few months that they want to remain in the property, then you lock in that capital gain without having to wear the cashflow loss. They may also see that as preferable because they don't have to "pay" rent.

 

[James Bond]

Unless there's some good reason why settlement has to be on a particular date, I would definitely prefer to defer settlement.

Why? Mainly due to disputes about condition. As a buyer you have a lot more power over a vendor - who wants you to settle - than you have as a landlord over a tenant..

See what happens. For some reason they don't want a long settlement - I think they may have mortgage problems. Hopefully they don't have rent problems.....

JB

 

[RPI]

If you put conditions in about the property and have your property manager do a presettlement inspection, taking photos etc you can protect yourself