Tenants dilemma

Discussion in 'The Buying & Selling Process' started by Christian77, 30th Oct, 2017.

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  1. Christian77

    Christian77 Active Member

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    hi people, we are looking at this property that has tenants living in until mid 2018, what’s the deal about buy the house and move in? I mean can we tell them to move out even if their lease finish next June?
    Thank you for your help
     
  2. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Get your solicitor to get the vendor to agree on "vacant possession" and let the vendor work with the tenant. They probably will have to pay them to get them out before the lease expire.
    You can't just buy the property and ask existing tenant to move out, not in Victoria anyway.
     
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  3. Dan L

    Dan L Well-Known Member

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    The tenants rights pursuant to the lease are paramount. Either the Vendor or you will need to provide the tenant with some sort of financial incentive to vacate the premises prior to the expiration of the lease.
     
  4. Big Will

    Big Will Well-Known Member

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    Either
    1. Buy with vacant possession - Perhaps do a very long settlement might be suitable for all three parties (Tenant, vendor and you)?

    If vendor wont sell with vacant possession, if I was the vendor I wouldn't unless I got compensated for it (as in higher sell price) then you may;

    2.a Buy and work out a mutual agreement with tenant for them to move out prior - could be pay for their removal cost, compensation or both. Depends on how much it is worth to you and how much the tenant wants to stay there - you cannot force them out because you bought the place as you also bought the lease. Everyone has their price but depends on how much you value it.

    2.b Buy and issue the correct notice that you are moving in after their current lease expires.
     
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  5. Ouchmyknees

    Ouchmyknees Well-Known Member

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    I think I read it somewhere on the forum that the buyer and vendor chipped in a 50k vacant possession for the tenant to move out early. I wish I could be that tenant...
     
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  6. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Sometimes thats what it will take.

    Nice windfall for the outgoing tennant. Thats a deposit and costs on a 500k PPOR.
     
  7. Big Will

    Big Will Well-Known Member

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    I was the one that posted it :)

    I cannot recall the purchase price but it was 1M+ I think 1.3-1.5M
     
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