Purchased brand new commercial property with tenant in Adelaide,now more than 1 month’s rent unpaid

Luckily I don’t. Borrowed money from my parents to pay it out. The loan term is very flexiable.

 

Thats the yield

LVR (Loan to Value Ratio) is the proportion of it you have mortgaged. Eg $1million dollar property, with $700K loan would be 70% LVR (ie 700K / 1mil). The reason they asked is because firstly some lenders will make you reassess if the property is vacant, and secondly because you might be making the repayments yourself if the tenant isn't paying.

 

I guess that’s my lesson learned The agreement terminats when the term expires; the property is destroyed; both parties agree in writing to terminate it; ownership of the property changes; a party fails to remedy a breach of the agreement within 7 days ( or a reasonable time in the circumstances) after receiving written notice from the other party to do so.

 

Oh dear~

 

Oh sorry! It was the rent ratio. I don’t have a loan for it. Borrowed money from my parents to pay it out.

 

cant he break the agreement with the PM ?

will there be a penalty ?

 

Do you want to get rid of this guy? I would.

Seems like you can't terminate on term expire or the property is destroyed (unless you do a jewish stocktake).

There appears to be multiple reasons to breach him. Breach him on a few, not just one. Then lock him out. Re-rent the joint for half what you were promised and wear a sandwich board out the front to promote his business. That's as good as it gets.

 

The agreement is made between me and the PM agent. It doesn’t include the tenant.

 

The agreement is made between me and the PM agent. It doesn’t include the tenant.

 

Yeah simply on a personal decision making level, I would also agree.

I'm a bit of a softy at the best of times, but generally on residential tenancies with tenants that genuinely can't pay and its obviously their home.

I have nearly no sympathy for failed commercial ventures and people who can't make their businesses work on commercial terms - no matter how young or inexperienced.

 

Hahaha, the tenant is in breach of lease for sure and I can act my legal right to get rid of him. My 5 year management agreement with the PM agent is the one I can’t break. Which concerns me.

 

i know.. what i mean is can you drop your current PM which doesnt look like its helping much and get an experience one to give you options and then carry it to improve your current situation ?

 

The tenant is going to meet up with my PM this afternoon and he’s gonna receive a warning( or reminder or whatever) to pay the outstanding rent+ fees, etc. within 7 days. I still want my money back, then I could kick him out.

Is this the way to go?

 

Oh I see. I can try but it’s unlikely

 

Ownership of the property changes ?

What does that mean - does that give the Tennant the right to terminate when you buy it ?

Agree with the others that the situation is only going to get worse. Terminate now.

 

Your lawyer has as much expertise in leases as the tenant in retailing from the sounds of it.

If the tenant is selling their business, they will seek an assignment - you do not initiate this & your solicitor should have advised accordingly.

Are using a solicitor or conveyancer?

 

That’s if I’m going to sell the property to someone else, my management agreement with the PM agent terminates. It is up to the new owner or organise a PM or self-manage.

The tenant doesn’t have any right to terminate it.

 

If the lease is terminated does your management agreement come to an end too?

 

No. Unfortunately