Lease agreement changes while under Contract of Sale

Discussion in 'Property Management' started by Vicky Charmers, 2nd Mar, 2020.

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  1. Vicky Charmers

    Vicky Charmers Member

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    Hello, I'm soon to be a landlord, very reluctantly so as the property I'm purchasing as my home comes with tenants until their lease expires.
    It has been poorly self managed by the owner with; no condition report ever done and the lease does require, no bond has been lodged by the Tenants into the Bond Deposit Authority (Tasmania) as it stipulates in the lease agreement for tenants to do, tenants have been paying lower than market rent which has never been raised, no allowance for pets on the lease agreement yet the tenants do have.
    What can I do and not do? So much information/advice for Tenants nothing for Landlords despite my efforts.
    Looks like I will need to see a appropriate lawyer but any offerings of information or advice would be gratefully received.
    Vicky:confused::)
     
  2. Trainee

    Trainee Well-Known Member

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    Have you already signed a contract? This really should be asked before you sign.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    @Vicky Charmers - How long until the lease expires?

    Sounds like a very 'friendly' relationship between the owner & tenant, hence no bond, possibly paying cash etc but they have put a lease in place.

    Appoint a managing agent, instruct them to carry out the ingoing report and serve the termination notice (even if it provides more than the required time to vacate it is still valid provided the date to vacate is no sooner than the termination date of the lease and the minimum notice period required has been provided).

    You are unable to increase the rent while they are on the current lease, nor can you demand that the bond be paid/deposited to the Tas Bond Authority.

    Instruct your solicitor to collect any outstanding rent and any rent prepaid from the vendor (you should not be out of pocket for any of the previous occupancy of the tenant). They should provide a rental ledger of when the tenant has paid their rent.
     
  4. Vicky Charmers

    Vicky Charmers Member

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    Yes the contract has been signed.
     
  5. Trainee

    Trainee Well-Known Member

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    You really should have asked for vacant possession then.
     
  6. Vicky Charmers

    Vicky Charmers Member

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    It was advised by selling agent that a lease would be available on the open day but it wasn't. It was a hugely visited open day which ended up with "Multiple Offers" in play, the agent still had no lease on offer and could not give much info apart from leased until early December. With only one chance to put a offer in and being told by the vendors agent "put your very best offer in" I did. Then 4 days later I was told my offer had been accepted, much relief as the right house in the right place & right price. I didn't get a full copy of the lease until day I signed off on contract. I have been trying to get advice on the lease apart from searching the internet have been to Legal Aid who could offer no advice, Tenants union here in Tassie who couldn't offer any advice as I'm not a Tenant and they sent me on a wild goose chase somewhere else which turned out to be a complete dead end, the selling agent will not advise as not property managing the house, have made limited contact to a civil lawyer on initial phone enquire but looking at hundreds of dollars to go any further. Selling my current home & moving to a much less populated area means I will be able to pay debts and will be better off than I am now getting by on Newstart with debts unable to get a paid employment.
     
  7. Vicky Charmers

    Vicky Charmers Member

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    No the owner and the tenants are not on good terms at all, unfortunately the owner was too casual, ignorant and has been taken advantage of.
     
  8. Vicky Charmers

    Vicky Charmers Member

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    Understand but have been told by conveyancer could not have done that and if I could of and did my offer (multiple offers) would may well not have been accepted. The property market now in Tasmania is FAST and FURIOUS it's going off big time!
     
  9. Vicky Charmers

    Vicky Charmers Member

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    It was advised by selling agent that a lease would be available on the open day but it wasn't. It was a hugely visited open day which ended up with "Multiple Offers" in play, the agent still had no lease on offer and could not give much info apart from leased until early December. With only one chance to put a offer in and being told by the vendors agent "put your very best offer in" I did. Then 4 days later I was told my offer had been accepted, much relief as the right house in the right place & right price. I didn't get a full copy of the lease until day I signed off on contract. I have been trying to get advice on the lease apart from searching the internet have been to Legal Aid who could offer no advice, Tenants union here in Tassie who couldn't offer any advice as I'm not a Tenant and they sent me on a wild goose chase somewhere else which turned out to be a complete dead end, the selling agent will not advise as not property managing the house, have made limited contact to a civil lawyer on initial phone enquire but looking at hundreds of dollars to go any further. Selling my current home & moving to a much less populated area means I will be able to pay debts and will be better off than I am now getting by on Newstart with debts unable to get a paid employment.

    Vicky Charmers, 16 minutes ago Report
     
  10. luckyone

    luckyone Well-Known Member

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    Maybe ring them again and ask it from the tenant's point of view i.e "The house I'm renting has just been sold, can the new owner kick me out? What are their rights?"
     
  11. Vicky Charmers

    Vicky Charmers Member

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    Thanks, had thought of that too:)
     
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  12. Vicky Charmers

    Vicky Charmers Member

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    Have plenty of information on tenants rights, but still have not been able to get any answers on some specific questions on what a new incoming Landlord who inherits a lease agreement that has not had certain inclusions in the lease agreement carried out, in this case no bond paid, no condition report was done and as below market rent is being paid and never been raised can new Landlord raise to current market.
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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  14. Vicky Charmers

    Vicky Charmers Member

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  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Appoint a property manager to get things in order before settlement.
     
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  16. Vicky Charmers

    Vicky Charmers Member

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    I'm unable to do it as not owner yet and the current owner/landlord is completely stressed out and not willing to do anything whatsoever & simple waiting for settlement and it all goes away.
     
  17. Lindsay_W

    Lindsay_W Well-Known Member

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    I would think a local property manager could answer these questions.

    Surely that right there is a breach of the tenancy agreement
     
  18. Vicky Charmers

    Vicky Charmers Member

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    Thanks, possibly but don't know what my rights are. Trying to find definitive answer.:confused:
     
  19. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    You're going to have to appoint a PM, the PM is also going to need to be appointed by the current owner - but you're going to pay them so they can start working on this ASAP and cover ground in the mean time. The PM will need to establish the tenure type - squatter or periodic, then take appropriate action to either get them on a lease via xCAT if necessary, and/or have them evicted under whatever grounds are available if that is what you want. Most PM's probably don't know the legal side well enough though, but a litigation lawyer familiar with tenancy law will cost you a small fortune, so if you can find a PM who knows their stuff and has a backbone and willing to take on the challenge, that is your most economical way out of this, I would hazard a guess from what little I know of the situation.
     
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  20. Scott No Mates

    Scott No Mates Well-Known Member

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    Appoint the PM before settlement. Get the pm to liaise with you/your conveyancer with the information required for them to take over the management and don't settle until the vendor has provided all of the information.