Hello,
We’re looking at a property with tenants, who are paying lower than market value rent until June, 2012.
We would like to know our options if we were to purchase, legally:
1) To increase rent?
OR
2) Terminate agreement so we can move in?
Thank you
-R.A.
Property in WA.
I would say:
1) No chance if the tenants are currently under a lease, if it is an expired lease then you would have to give the appropriate period of notice
2) See point 1)
I thought you could do both given notice – 30, 60, 90 days…
You cannot do either if they are on a fixed lease until June 2012.
Fixed means fixed. That's why tenants take out leases so they have security for the term of the lease.
You have to accept the lease.
Offer a lower price to compensate. The vendor will have lots of people not willing to wait 6 months so should be negotiable. When offering a price state the reason for the lower offer (lost income). Give the tenants notice to increase (or move out) at the end of the lease. Not sure of the length of notice that needs to be given in WA. Ask the real estate agent.
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