Can I sell property while renting

Discussion in 'Property Management' started by Martinez22, 7th Nov, 2016.

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  1. Martinez22

    Martinez22 Well-Known Member

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    My property is currently under lease till October 2017, is it possible to sell while leased?
    What conditions come into play?
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Of course you can.

    If they're on a fixed lease, the new buyer inherits both the lease document AND the tenant but NOT the PM.

    Rules vary per state for things like:
    Notice to tenant of intention to sell
    Notice to tenant for condution home opens
    Etc
     
  3. thatbum

    thatbum Well-Known Member

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    You can, but for a whole range of reasons I personally would choose not to unless there were some pretty extraordinary circumstances.
     
  4. Martinez22

    Martinez22 Well-Known Member

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    Awesome ! Do i need to pay any break fees to the current PM ?
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    It's a pretty desperate measure to take if you just want to exit the management agreement .
     
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Usually not but depends on your arrangement
     
  7. Perthguy

    Perthguy Well-Known Member

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    Is this property in Perth?
     
  8. Martinez22

    Martinez22 Well-Known Member

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  9. Martinez22

    Martinez22 Well-Known Member

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    If its too much hassle i'd rather wait til the lease agreement ends, just want to confirm whether its an option
     
  10. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    Obviously your property if sold with tenant in place will appeal only to investors and potentially owner occupiers that are prepared to tolerate being landlords till the end of the lease. You'll have more prospective buyers (ie owner occupier) if the property is vacant. If you can wait till the lease ends (be sure to send the notice to vacate!) or make an arrangement with the tenant to encourage them to leave early, it'd probably give you a better sale outcome.
     
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  11. Perthguy

    Perthguy Well-Known Member

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    I have bought an IP in Perth with a tenant in place. The tenant was happy to sign a new lease agreement (the old one had expired) and stayed on after the new one expired on a periodic tenancy basis.

    Something you need to be very aware of is the notice if you want access to the premises. If you are using a standard residential tenancy agreement in WA:-

    LESSOR’S ACCESS TO THE PREMISES
    24. The lessor, property manager or person acting on behalf of the lessor, can only enter the premises in the following circumstances:
    ...
    24.7 showing the premises to prospective purchasers, at any reasonable time and on a reasonable number of occasions, after giving the tenant reasonable notice in writing;
    24.8 if the tenant agrees at, or immediately before, the time of entry.
    https://www.commerce.wa.gov.au/sites/default/files/atoms/files/rtaform1aa.pdf
     
  12. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Spot on! In addition, you'll also have very accurate and very recent rental data which is excellent for a prospective landlord whilst still appealing to the owner occupiers as Jac has said. This, of course, depends on whether your PM was on the ball and keeping your rent at market rates.

    Having said that, I'm aware of some landlords dropping their rents by up to $150 per week (!!) from one lease to the next in Perth so recent rental data may be an anomaly in the current market depending on where you're at with it.

    - Andrew
     
  13. Martinez22

    Martinez22 Well-Known Member

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    hahah i just got this. Noo not my reasoning behind the thought ! but funny
     
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