Hi, I'd be grateful to know if anyone here has ever sold their investment property to a tenant and if there's anything in particular to put in the contract/offer & acceptance?
I am in discussions to sell my WA investment property to my current tenant who has been there for 6 years.
I had given them notice to vacate by 1 May (they're on a periodic lease) and given the state of the property market in Perth, they were having trouble finding somewhere else suitable either to rent or buy.
My plan was to refurbish the property after they left and then possibly sell on the open market anyway (or get another tenant in).
They have agreed to purchase the property as is although they have just mentioned a few things wrong in the house, such as a leaking kitchen sink.
I don't want to do any repairs if I'm selling to them – the whole purpose of getting them out was to do up the whole house anyway, I may as well do that if they start wanting repairs. I also want settlement on 2 May and unconditional finance acknowledgement.
Is it more trouble than its worth? It's sort of like early possession before settlement except that they are currently tenants with a tenancy agreement in place.
Thanks
Hi kesiera, Have you read Steve McKnights books? They detail a strategy similar to what you are planning, and in a very profitable way. It's called vendor financing, and there's at least one forum member who is experienced in these sorts of deals. No doubt they will pop their heads in at some stage.
Cheers.
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