Hi guys,
I am just wondering seeing we purchase property to benifit financially has anyone ever thought of being creative with a the contract of sale and request the the property be tenented upon settlement or at least be up for rent… Any ideas… Is it possible??
Hi NkZadar,
I don’t quite understand your question but as soon as our property went unconditional I listed it with the real estate agent, they put it on the net and a couple put down a holding deposit on it of one weeks rent so that they could rent it as soon as possible, and in actual fact they picked up the keys literally 5 minutes after settlement. This particular house was in poor condition, big blue elephants painted on the walls and had been a cattery, but the new tenants wanted it ‘as is’ paid $30 per week more than I had calculated and all because I had said ‘dogs okay’ in the ad. It is almost impossible to find rentals that allow dogs on the gold coast. Anyway, so getting that tenant in there immediately can be done.
cheers, sunshine.
Hi NKZadar
With a couple of properties we have bought we spoke to the people selling them and askd if we could rent them out straight away no problems any rent collected before settlement went to the old owners places rented from day one for us.
ErikaI have also rented a place out about a month before final settlement. I just got the agent to ask the sellers if they had any objection to renting it out – and as they collected the rent until the property was settled they had no problems at all. The only risk to them was that we didn’t settle and they had tenants in place for another 5 months, but that risk was a) small and b) they would probably want to get tenants in if the sale fell through anyway as it would just be costing them money until they sold it again.
NkZ,
If you’re asking can you make it a part of your contract that the IP be tenanted, then I doubt you can. I think most places are sold “as is” and if it’s not tenanted, I am not sure you can compel the sellers to tenant it before you buy it. “Subject to tenancy” is usually only written on a contract when there are tenants already there, i believe.
It would be your responsibility as purchaser to get tenants, methinks. It’s also slightly messy to ask the sellers to get the place tenanted, as the lease would be to them and have to change when it was sold to you blah blah. I am in the same circumstance now with a place I am buying, with the manager of the complex awaiting my certainty of me buying before she can get in new tenants. But I think it has to come from the “supply” side- as in the sellers or tenants wanting tenancy, not from the new buyer wanting tenants in.
kay henry
Hi Kay Henry
We have had tenants in properties before settlement a couple of times. The rental agreement is always with us from the beginning we paid the letting fee and after settlement we paid the old owners the rent collected during that time. We never had a problem the old owners didnt live there and so were quite happy to have some money coming in.
ErikaErika
)Yes, I am sure you as a prospective owner might be able to arrange with the sellers to put tenants in. I was thinking that NK was wanting the sellers to get the place tenanted as a condition of contract. So my response was suggesting I don’t think he can ask *them* to get in tenants as a condition of sale. But yeah – i am sure the sellers wouldn’t mind if the new buyer got them in :o)
kay henry
Hi peoples,
This is slightly off topic, but somehow related…
I would like to advise people not to rent out your property to the new owners before settlement.
i.e. The people who buy your property move in themselves and pay you rent until they take possession at settlement.
I have known two people who have done this and they have regetted it. What happened was that the tennants found problems with the house that they hadn’t noticed before and caused all sorts of problems for the seller. They probably had no right, legally, to do this but they tried their best anyway.Cheers,
Sue []“Be careful not to step on the flowers when you’re reaching for the stars”
We have a couple of retirement usints under construction that will settle in 4-5 months. We do not pay anything on them (not even a deposit) until there are tennanted out.
I have a workmate who has bought property in Broome (x2) and both times made it conditional on it being rented. I think you have to be a little careful on this tho as they may not scrutinise the tennants so thoroughly.
Fibejebe.
Hi guys,I am just wondering seeing we purchase property to benifit financially has anyone ever thought of being creative with a the contract of sale and request the the property be tenented upon settlement or at least be up for rent… Any ideas… Is it possible??
Would it be different for OTP apartments and an apartment bought from your avarage vendor? I think most OTP units would be sold with some kind of rental guarantee on them. The problem is once that guarantee is over, will other tenants be forthcoming?
kay henry
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