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Best way to approach tenants to BUY

Discussion in 'General Property Chat' started by Bran, 27th Jul, 2016.

  1. Bran

    Bran Well-Known Member

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    Some may recall my recent attempt to sell a property, with the tenants ultimately obstructing inspections, photographs etc.

    They initially expressed interest in buying it, but due to my asking price (was testing the market), it was well out of their league. I took it off the market after no bites.

    I'd like to offer it to them again, and ask them to make an offer, otherwise I will kick them out at the end of the lease and wear a vacant period whilst it sells.

    Any ideas on the best approach?

    This property needs to go. Costs 12-14k a year with no capital growth in 10. Dud.
     
  2. Big Will

    Big Will Well-Known Member

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    Approach them same as before talk that you are thinking about selling again and wanted to know if they were interested in purchasing and if so how much would they be willing to offer.. Then negotiate/accept/decline.

    If they don't want to start at a price you might even tell them you would accept the asking price of last year (as you said no CG) and see what they have to say.

    Otherwise if you need the tenants out to sell then so be it.
     
  3. JohnPropChat

    JohnPropChat Well-Known Member

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    How about a rent-to-own scheme. Get them to bite easily and pay more monthly. If they bail, you'll get to keep the deposit if not you'll have sold the house.
     
  4. dabbler

    dabbler Well-Known Member

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    If you are def going to sell, I would just ask them to make another offer after knowing what your expecting, maybe help them with getting a local broker if they are interested, IIRC there has been a rate drop since your first try and maybe another coming.

    If it is not that long till they are out, clean it up and give it to an active agent who gets good results, probably much easier as your will probably waste a lot of time and do a lot of hand holding the other way.
     
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  5. Biz

    Biz Well-Known Member

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    You have to be a bit careful here because if they make an offer you don't like then you kick them out it could be seen as retaliatory and off to tribunal you go.

    By the sounds of it their offer was way off anyway so it's doubtful they are going to magically come up to a figure you are happy with. I would just boot them out, clean it up and put it on the market.
     
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  6. MTR

    MTR Well-Known Member Premium Member

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    Why did it not sell??? beside the tenant issue??? was it above market value?? what was re agents feedback??

    Unfortunately you do not have the upper hand .. don't wish to be negative but it would be highly unlikely that they will offer what you want I would just go to market and get it right.

    Unless its an absolute dead market or massive oversupply there are strategies that will sell your house and they work well, CREATE COMPETITION, its that simple.
     
  7. inertia

    inertia Well-Known Member

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    What if you give them notice then ask if they are interested in buying?

    Cheers,
    Inertia
     
  8. Biz

    Biz Well-Known Member

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    I think that would be ok, maybe ask them a couple of weeks before they are due to move out.
     
  9. dabbler

    dabbler Well-Known Member

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    Yeah, that is probably the better way, by default they would be able to make an offer without even mentioning to them any more than not renewing due to selling.
     
  10. Marg4000

    Marg4000 Well-Known Member

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    Agree.

    Give them notice then a bit later tell them you are selling. Tell them that as they have been good tenants (; you will give them first opportunity to make an offer (within xxx days) before you engage an RE agent. The lack of agent commission gives you both a bit more leeway.
    Marg
     
  11. Bran

    Bran Well-Known Member

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    They never made an offer. They just initially expressed interest, then walked away when they heard the asking price. It didn't go any further than that, even when I dropped the price.

    @MTR - above market value. It's a development site so we were trying our luck, but it has some barriers to development (needs the house knocked down - not a biggie in my book).
     
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  12. Bran

    Bran Well-Known Member

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    Is there any way I can get them out early?

    What is the right order of steps here if their lease is not due to expire?
     
  13. Marg4000

    Marg4000 Well-Known Member

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    You can try to persuade them to leave. Usually involves $$$$$.

    Other idea would be to give them formal notice that you will not be renewing their lease and they will have to leave when it ends. You could include the offer to let them break their lease early if they find another property. Obviously this only works when current rental prices are cheaper than when they signed their lease.
    Marg
     
  14. Bran

    Bran Well-Known Member

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    We are going with kids gloves

    Offer them the property with a reasonable asking price, open to offers

    If they decline, we back off, do nothing, then issue them notice to leave 2 months prior to sale, with the view to a quick freshen up then on the open market.
     
    Colin Rice, Biz, wylie and 1 other person like this.
  15. dabbler

    dabbler Well-Known Member

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    Bribe...err, sorry, "encourage" them with $$$ They will probably hold off just to spite you.
     
  16. Bran

    Bran Well-Known Member

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    Probably. I had to bribe them last time. I'll ride it out, I'm not in a hurry
     
  17. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @Bran is it a splitter site? is there a margin for a developer to make money in your opinion?

    How far from the Brisbane cbd mate? flat land?

    thanks.
     
    Last edited: 29th Jul, 2016
  18. Biz

    Biz Well-Known Member

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    Sounds like a plan. You'll feel better once you rid yourself of this dog property. I just sold one yesterday that sounds similar to yours, held for 13 years, barely went up. Overall it would be a loss but I am just stoked to finally pi$$ it off.
     
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  19. Bran

    Bran Well-Known Member

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    Fingers crossed! I was unable to speak to the agent in person, but she left a message that they sound interested!

    @Biz - yep. It's gotta go.
     
  20. Bran

    Bran Well-Known Member

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    Cairns. It's LMR/splitter, yes. But not Brisbane.

    My Bris properties are doing fine thanks very much :)