Offering to rent a home currently up for sale?

Hello,

I live in NSW and our family are planning to rent for the next 10+ years while we raise a family. We are needing to upgrade due to our children growing up. The rental market is a bit crazy at the moment, it's not uncommon for us to see a house we love up for rent, only to come back to apply a few hours later and it has been taken down.

So this got me wondering if it's possible to get in earlier. There are often very ideal houses up for sale. Is it appropriate for me to go to the sale house inspection and offer my rental portfolio and a rental price to the estate agent in case the buyer is an investor? We have a good rental history, so I'm thinking an investor might like to avoid the whole rental process and consider us up front. Or is this not appropriate at all?

Thanks!
Ashley

 

It wouldnt be hard for an investor to find a tenant at the moment, as you said.

if you are saying have the owner rent to you so that an investor can buy and have a ready made tenant, why would the seller want to shut out owner occupiers? And why would an investor prefer someone they didnt vet?

 

Thanks so much for your reply.

I wouldn't offer my tenancy to the current owner. I would go to the open house and have a talk to the estate agent, telling them that if an investor was to buy this property, they could give my rental portfolio to the buyer to consider. The estate agent could then tell his potential buyers "if you're wanting this property as an investment, I have already had a tenant offer "this much" money to rent the property". If the buyer saw our portfolio and was happy to rent the property to us upon their purchasing it, it could save them time and money putting the property on the market for rent? They could contact us to sign a lease through their chosen agent.

I have never heard of this being done before, but I'm trying to be innovative and wondering if it would be appropriate to try.

I hope this is more clear.

 

What does this mean?

 

Sorry, I probably made that description up, but just a tenancy application with a cover letter describing our family. We have a really good rental history, so if the buyer wants to avoid advertising costs, they may be happy to enlist us as tenants up front.

I just imagine if I had bought a property as an investor, and the estate agent gave me a tenancy application of a tenant with a great history who was willing to pay a good rental price, I would consider them to avoid the headache of advertising.

 

I don't think most buyers would think that way. Lots of hot rental markets around Australia at the moment where most investor owners would still want to test the market and get the best rental applicants possible.

 

Would this be also to see if they could get a higher price for it? I've noticed some rentals being leased for higher than was advertised. Is it common with the current market for tenants to offer extra rent in order to look more favorable to the landlord?

 

Most likely in this market an agent already has a waiting list of good tenants.

there arent any good options, other than offering more rent and signing quickly.

similar to buying in a hot market.

 

I hate to say it, I agree with @thatbum most people would be likely to want to get it on the market first. You might catch their ear if you offer a particularly sharp rent, but in that case you're probably better off just offering extra to something on market? (Also, not sure what 'rental bidding' laws are like down your way, agents aren't allowed to encourage offering higher rents up in QLD).

 

Thank you kindly for your reply. I think we have collectively established my strategy may not be the most effective. However, I am still wondering if it would be appropriate? Would it be considered rude for me to go to a sale inspection to see if it is suitable for my family to rent and then hand over a rental application for the prospective buyer to consider?

I am looking for a very particular type of house that is not so common around here, and if I see one up for sale that I love, I'd like to try get my foot in the door as soon as possible in case it gets sold to an investor. Even if it's not super likely to work, I'd like to give it a shot if it's not considered inappropriate.

 

Short answer is NO.

When I buy a home, I have my PM advertise for a tenant, but wouldn't even consider your proposal. I want someone that my PM has vetted, and I want market price.

 

My view is that the sales agent would be very focused on trying to find buyers for the sale and not too interested in a tenancy application. Once you view a property you like, I would wait till its sold and then send your application to their rental BDM or head of PM. That way when they are signing up the investor client they can have your application in mind.

 

I don’t think agent will have any interest in rental application as I have noticed even with in same Real estate agencies teams focusing on rental and sales are different.
Cannot think of any effective way before new owner decides to put on market where you can offer higher and hope the pick you. I have noticed that rental advertisement is not very expensive and hence not much incentive to not go to market.