Outgoing Tenant; Vacant Possession at Settlement and the Condition Report

Hi all,

I am currently in the process of purchasing IP2. The house has no structurally issues and passed the B&P Inspection. However, there is a large number of cosmetic defects that have been caused by the current tenant, as per the incoming condition report. If four weeks bond ($1260) was collected this would cover most of the damage. The selling agent owns the business and their staff are the PM.

Worst case scenario, I am stuck with the damage and have to pay to fix it myself.

However, I am wondering if anyone has been in this situation before. What do you think my chances are looking like? Whilst the repairs aren't expensive I would rather like to avoid paying the repairs and having a vacancy to fix these issues.

Any thoughts?

I shall spill all the goss once the property settles in a month or so.

 

What does your contract say? Probably that you are buying the property in the condition it was when you exchanged contracts.

 

Hi Legally Blonde here are Some questions you might want to consider
1.I think you can't claim on tax any repairs you do when you first buy a property...(I am not a tax expert), so please check with someone who can tell you.
2.I would be checking with the Agent/Property Manger what their stand is on claiming the bond, also ( I am not a property lawyer) Is it being sold with vacant possession?
3.Is the vendor claiming the bond to Make Good? (If they do, you wont have to do anything!!)
4.Another scenario, you keep the tenants provided they make good themselves?
5. Have you been given a copy of the ingoing inspection report? Perhaps that constitutes part of a contract?


Sorry I cant help any further, but sometimes asking the right questions can lead you to where you want to be, and Good Luck with your purchase!
Cheers

 

I was in similar situation when I bought my PPOR. Tenant had not maintained the property well & I had to speak to the PM many times to convey that I need the property in a decent condition when the keys are handed over to me. I gave her the list of problems I noticed to compare with the photos taken before the lease. To make the conversation a little easier, I told the PM that they could get to manage the property if I turn it to IP. At the end, it wasn't that bad. They fixed most of the stuff leaving very minor repairs which was expected.

 

Thanks all.

The contract is for vacant inspection. I am hoping because the PM and agent are both the same company they will be attempting to make things right!

 

I shall keep you posted!

 

Before taking possession, let your legal rep know of any issues, some money can possibly be retained if there is legit problems.

 

Hey All,

The property in question settled earlier this month. Unbelievably the outgoing tenants replaced 5 of the doors and ALL of the carpet in the property! Sure it is cheap carpet, but it saves me having to replace it in the next few years.

I have no idea how I got so lucky! Literally save me thousands of dollars on my minireno/tidy up!

 

The doors did havr damage. But most of the carpet was not too rough.
I am so unbelievably lucky.

 

So the lesson we all learned is that you should ask the tenants to make good!
Congrats Legally Blonde!
Next purchase please!