Would you ask for vacant possession on property with good tenants?

[MsAli]

Hi all,

Just curious as to if you would ask for vacant possession on a property with tenants who are looking after the place? My concern is whether you leave them there and then ask for a new lease to be signed for the increased rent - which takes around 6 weeks notice...

What would you do?

Cheers,

Sana.

 

[Rixter]

Depends upon your chosen investment strategy. If your strategy was a buy, renovate & sell you would need to get in and renovate the place and as such would need to take vacant possession.

Some times depending upon what state you are in the existing tenants lease remains in place irrespective of whether it is sold to a new owner.

If I was after a long term buy, hold and rent property and it had a good tenant already in place I would keep them on.

 

[kathryn d]

We have only ever asked for vacant possession once..that was because my daughter was going to rent it.

Other than that, we inherited the rest. A "good tenant" is someone who looks after the place? I would need more info than that. If you are concerned, request to see the rent payment schedule.
Our newly inherited tenants seem to leave quickly when we bring out the new lease, and our property rules they must follow.

If everything seems ok..leave them there...

 

[DaveM]

If they are in at market rent, keep them on. If they are significantly under market rent and it will be a drawn out process to increase it, vacant posession.

I would talk to the agent and have them discuss with the tenants, give them first option at the property at the revised rent.

 

[virgo]

Keep tenant

Hiya

I followed DAVESYDNEY advice ie spoke to the tenants directly or through the PM (in my case, i put in a new PM).

I gave them notice that i WILL increase the rent but i will put in a new aircon. One of the tenants ( i had two) grumbled, had a look around but soon realised he was on a good wicket and stayed on!

BTW, the rents went from 360 to 530!!

 

[wylie]

Did you have to wait for the existing lease to finish before asking the new rent?
In Queensland that is what you would have to do, but I know different states have different rules.

The rent went from $360 to $530 . Is that one house or two (you mentioned you had two tenants?).

If just the one house you were buying, then that is seriously and ridiculously under-market rent being charged by the vendor. I wonder if the tenant was long term or what might have been the reason for such a huge under-market rent amount.

 

[virgo]

Rents

Hiya Wylie

House was a dual (actually triple as the garage is also rented out to a plasterer as his office ) occupancy and yes, rents were seriously undermarket (like no change since 2005!!!)

Point i am making is i did not incur any letting fees as the tenants have been there already BUT sacked the previous PM as he was seriously doing a lousy job!!

 

[MsAli]

Thanks guys. Points noted for the next/future purchases.

 

[kathryn d]

Hiya Wylie

House was a dual (actually triple as the garage is also rented out to a plasterer as his office ) occupancy and yes, rents were seriously undermarket (like no change since 2005!!!)

Point i am making is i did not incur any letting fees as the tenants have been there already BUT sacked the previous PM as he was seriously doing a lousy job!!

Congrats..a great outcome!