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

    19th Feb, 2019
    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

    18th Jun, 2015
    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

    2nd Aug, 2019
    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
    Team Davo, Marg4000 and wylie like this.

The shift to the regions has been quite profound with Millennials and Gen X leading the way. It seems affordability, lifestyle, and working from home have been the key drivers from which these generations have been able to take most advantage.