Approaching tenant to sell property

Discussion in 'The Buying & Selling Process' started by Dan Ess, 21st Oct, 2019.

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  1. Dan Ess

    Dan Ess New Member

    Joined:
    19th Feb, 2019
    Posts:
    2
    Location:
    Broadbeach Waters
    I own an apartment where the tenant has renewed for 6 months instead of 12 as they have advised they are in the market to purchase a property. I have been interested in selling this particular property however it’s not one that would necessarily sell quickly or easily and therefore considering approaching the tenant directly to see if they may be interested in purchasing. Any tips or ideas on the best way to contact the tenant regarding this? Should it be done through the property manager or an agreement formulated with a sales agent to facilitate the process? What are the implications of sales commissions if approaching with the various methods?
     
  2. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    18,486
    Location:
    Sydney
    I would check what the agency agreement says. It may already hold them liable for comms if it sells to the tenant. Once you know it may guide the choices
     
  3. Inertiaticesp

    Inertiaticesp Member

    Joined:
    2nd Aug, 2019
    Posts:
    6
    Location:
    Melbourne
    Coming from the tenant side (we just bought from our landlord) it can't hurt to extend an offer. We found out in a roundabout way - property manager rang and said the LL wanted to bring an agent through to 'value the property for tax purposes' to which we shot off an email saying if the LL is looking to sell we are looking to buy.

    Pros for LL: 30 day settlement, save on auction/agent fees (though small percentage went to property manager no doubt), no vacancy gap, warm fuzzy feelings of selling to someone who will take care of property

    Pros for us: no open inspections for a month, saves us fighting at auctions in a blue chip suburb of Melbourne, no moving, chance to place conditions on contract, able to negotiate fair price

    Win win if you ask me
     
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