buying a house with tenants

Discussion in 'The Buying & Selling Process' started by Mummabear89, 11th Oct, 2019.

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  1. Mummabear89

    Mummabear89 Member

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    so we have put in an offer for a house that has tenants in place (fixed lease) up until early next year. however, i did a drive by and noticed they were moving out. the plan was for it to be used as an investment property. we were going to keep the tenants for 12 months and in the mean time save up and do a reno on it as the house is in a bad state. im 99 percent sure the tenants are moving out and i dont have enough money for the reno atm and i feel that the house would not rent out straight away in its current state. the tenant is a single mother and i think she would be able to claim hardship to get out of the lease.
    this has gotten into a messy situation for us... what would be our options?
    house is still under contract and i dont have landlord insurance yet as i was going to wait till settlement.
     
  2. Trainee

    Trainee Well-Known Member

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    What did you put in the contract terms about vacant possession etc?
     
  3. Mummabear89

    Mummabear89 Member

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    it just has the tenants tenancy details such as the tenancy duration (they have 4 months left on the tenancy) so if they left i will be out of pocket for those months. ill speak to the solicitor on monday... but now im just stressing:*(
     
  4. Marg4000

    Marg4000 Well-Known Member

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    There was never any guarantee that these tenants would renew, so if you intended to rent it out for 12 months you would have been looking for a new tenant in 4 months time.
     
  5. Mummabear89

    Mummabear89 Member

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    yes, i was good with that (4 months should be enough time to get the funds for the reno) i just told the real estate that i would do the reno probably in 12 months time)
     
  6. Mummabear89

    Mummabear89 Member

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    i feel that, if i had know the tenants were going to break the lease i would have offered a longer settlement..
     
  7. Skinman

    Skinman Well-Known Member

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    Is the selling agent the managing agent? If so ask them.

    If they have moved out get yourself a PM ASAP and ask if you can have opens once unconditional. You would be surprised what some people are happy to live in. Even if you have to drop the rent a bit to get a tenant you will still have some income.
     
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  8. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Not sure why a single mother gets cited for someone else's financial stress and decision to buy a property when there is such an obvious lack of funds. Lordy knows what will happen to future tenants if a problem occurs with the property that is the landlords responsibility to repair or replace. :-(
     
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  9. Mummabear89

    Mummabear89 Member

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    cool story bro!... im not in financial stress i just didnt want to touch the property until i could get vacant possession in 4 to 10 months time!! she was the one who signed the contract for the year not me! and assuming i wont fix repairs! seriously... i do have other properties that are very well maintained!
     
    Last edited: 12th Oct, 2019
  10. Fargo

    Fargo Well-Known Member

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    Not sure why obligations and purpose of a contract are hard to understand,Or why somebody wanting to improve their financial future is hard to understand either, unless perhaps if you have a silver spoon in your mouth.
     
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  11. Mummabear89

    Mummabear89 Member

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    thanks for the input. i will definitely arrange another PM. i think maybe im being 'precious' its not in a bad, bad state... just a 90s kitchen with no dishwasher, no aircon etc. which is what i wanted to update.
     
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  12. Skinman

    Skinman Well-Known Member

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    If they have moved out you might have the opportunity to put a couple of split systems in before new tenants. Just remember the property has to be advertised for rent or income earning for any improvements or maintenance to be tax deductible.
     
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  13. Marg4000

    Marg4000 Well-Known Member

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    So long as the property is well maintained overall and clean, the lack of air-con and a dishwasher won’t deter all tenants. Even a 90s kitchen is not a problem so long as it is in good working order.

    In fact, many tenants would prefer a lower rent rather than pay for all the bells and whistles.
     
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  14. Mummabear89

    Mummabear89 Member

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    thanks guys! i just always think..'would I rent the property' in its current state i would say no but i think use are right. i do have to get rid of the cat **** smell though... 5 cats in one house- the smell is a little overwhelming
     
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  15. Skinman

    Skinman Well-Known Member

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    If the tenants had a proper rental agreement in place that would have had to have a carpet clean and cat p*** deodorising treatment before they move out or taken from bond. You really should try to find out who the managing agent is and use the “carrot” continuing to manage it for you to get as much sorted from the current tenants bond etc.
     
    Stoffo likes this.
  16. Stoffo

    Stoffo Well-Known Member

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    What are the rules in Qld on a tenant vacating once the landlord advertised a property ?

    In NSW a tenant can vacate quite soon after finding out/being notified of the property being for sale ( unless the tenant was made aware of the intent/possibility of sale prior to signing the lease)
     
  17. Mummabear89

    Mummabear89 Member

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    back when I was renting i had a landlord sell the property i couldnt move out because i was on a fixed lease and was stuck there until that date ended (the lease agreement ended) im not sure if its still the same laws or if its changed as this was about 10 years ago
     
  18. Mobe9

    Mobe9 Active Member

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    I was renting a place which was put up for sale start of the year. I had no legal recourse to end my lease as I still had 'quiet enjoyment' of the property. However I was lucky enough to have a flexible owner who agreed on an early exit.

    As far as I know tenants are only able to end their lease if a seller shows the property to a prospective buyer within two months of a new lease agreement AND they did not submit a form 10 to the tenant - Notice of Lessor's Intent to Sell.

    More info can be found here: When a property is for sale | Residential Tenancies Authority
     

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