Question for all…
I have a house that is rented out until Nov06. I would like to end the lease early because I want to sell the property. I have been advised I can’t end it early and will have to sell the porperty with the tenants. I would rather not do this as I wanted to make a few improvements before I sold and because my agent deems these improvements as disruptive (eg. replacing carpets) she said I should not do them until the lease is up.
Should I be looking for a new agent or she is right?
HH,
Have you considered approaching the tenants to see if they would be amenable to you “working around” them? Perhaps they may be, for a decrease in rent??? That way, you get to do your minor renos, you still get SOME income from rent (albeit reduced), and it MAY look better to prospective buyers that you have an incumbent tenant.
Something to think about???
Cheers,
Adam
Oasis Finance
for your Vendor Finance solutions
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[email protected]This agent is telling you the exact truth and adding nothing useful.
Legally you cannot force the tenants to leave if they choose not to.
Unless they have broken some lease terms of course.
However there is no reason why you cannot ask them to leave, offer to pay their costs to move or any other avenue which gives them some choice and incentive in the matter.
I suspect the PM doesn’t wish to lose the rental. Each rental property is worth $thousands$ when calculating the value of the rent roll and is often the true “wealth value” of a real estate agency.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thankyou both for your help.
I did think of talking to the tenants but didn’t want to cause any friction with the agent. I also thought if I told the tenants I was going to sell they may think there is not as much incentive in looking after the place.
It could work in my favour though because if I tell the tenants I will be selling at the end of their lease and if they chose to move beforehand they wouldn’t have to pay normal penalties of ending the lease early (as the tenants can lease early). This way they may choose to leave and I get the house to do up and sell.
Will have a think about this…Originally posted by Mortgage Hunter:However there is no reason why you cannot ask them to leave, offer to pay their costs to move or any other avenue which gives them some choice and incentive in the matter.
I suspect the PM doesn’t wish to lose the rental. Each rental property is worth $thousands$ when calculating the value of the rent roll and is often the true “wealth value” of a real estate agency.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon is right here, in that rental rolls are the cashflow to many a real estate agency, especially in lean times. Just to give you an approximation, the average property is “worth” the equivalent to four week’s rent when onselling rolls to other agents.
Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
Originally posted by Pro-Active:Originally posted by Mortgage Hunter:However there is no reason why you cannot ask them to leave, offer to pay their costs to move or any other avenue which gives them some choice and incentive in the matter.
I suspect the PM doesn’t wish to lose the rental. Each rental property is worth $thousands$ when calculating the value of the rent roll and is often the true “wealth value” of a real estate agency.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon is right here, in that rental rolls are the cashflow to many a real estate agency, especially in lean times. Just to give you an approximation, the average property is “worth” the equivalent to four week’s rent when onselling rolls to other agents.
Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
I heard it was even significantly higher than that – something like $5000 for an average Sydney property?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
And that is why they love locking you into fixed term property management agreements.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113I previously sold a property with a lease and the new owner was happy to receive rent until the lease expired. I would talk with the tenants offering to halve the rent while the disruption is going on and promise you are not going to hike up the rent because of the improvement and that you want to increase the sale price rather than the tenants rent.
Originally posted by Mortgage Hunter:Originally posted by Pro-Active:Originally posted by Mortgage Hunter:However there is no reason why you cannot ask them to leave, offer to pay their costs to move or any other avenue which gives them some choice and incentive in the matter.
I suspect the PM doesn’t wish to lose the rental. Each rental property is worth $thousands$ when calculating the value of the rent roll and is often the true “wealth value” of a real estate agency.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon is right here, in that rental rolls are the cashflow to many a real estate agency, especially in lean times. Just to give you an approximation, the average property is “worth” the equivalent to four week’s rent when onselling rolls to other agents.
Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
I heard it was even significantly higher than that – something like $5000 for an average Sydney property?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
This was quoted to me from a Qld agent though I’ve been also told that it varies (much like commission rates) from agency to agency and depends on reasons for selling the roll etc
Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
You will have to check with the rental board (I have looked for my book and cant find it) but I think (in Victoria) you can break this lease if you want to sell or carry out major renovations – and you do. Worth a phone call to the relevant authorities in your state
Fern
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