We have decided to sell our IP that we have rented to a family for the past 3 yrs. At their request, they are on a periodic lease continuing from an intial 6 month lease in Jan 2005. The hassle is that they are not happy and despite our efforts to try and find a win-win solution for the sale campaign (no private viewings at odd times, limited to 4 weeks with viewings for only 1/2 hr on Sat and Wed mornings 11-11.30, dropping the rent by 30% for the duration of the campaign, offering to pay for a prof window and house exterior wash plus garden cleanup) they have today refused to allow us to hold Wed opens for the last 2 weeks of the campaign as they plan to be away. They have also refused to allow photographers access after we had previously agreed a time this Friday. The response there was that they will go out and switch the alarm on!
While we had really wanted to keep them on side, it seems that we are being forced to stick by our right's as landlord and give them 60 days notice to vacate. Then, we face the hassle of delaying the sale campaign until end October.
Please advice any recent experience in this type of situation and action taken, successful or otherwise??
Regards
Sue
What state is the property located in?
Seems to be a lot of verbal agreements taking place.
Step 1 give the tenant notice that the property is on the market for sale preferably on the approved form.
Provide the appropriate notices of entry and provide the required period of notice on the approved forms.
In most states tenants are required to allow reasonable buyer access with 24 hours notice.
In some states tenants have the right to obtain in advance the details of all persons entering the premises for an inspection. Makes holding an open house a bit difficult.
Speak to the residential tenancies board in your state they are there for owners/investors too.
The property is located in Sydney and we had given the tenant 5 business days notice for access for photos and 12 days notice for first open for inspection.
The hassle with written notices has been that we did not list the property for sale with the property management agency. They then relinquished managing the property in their upset over losing the listing to another local agent. Hence, we have transferred the management to the agent listing it for sale and the written notices have been overlooked in the process.
Such a mess in hindsight, but we did not expect the principal of the property management agency to pull the pin on the day we advised that the property was listed for sale with another agent. Nor did we expect the tenant to push it all so hard and so far. I suspect that the tenant has been advised of how to 'stuff up our campaign' by the ex-agent. The tenant seems to have expected us to give in and let them dictate the arrangements.
There is so much money at stake here and we are obviously selling the property because that is in our best interests financially – not the tenant's best interests. They are likely to be upset, but hey, it is alays a risk in the renting game. We are tenants ourselves and face risk of the same circumstances.
Where to from here?
Sue
the other thing to remember to is if someone is interested in your property as an investment they are not going to keep uncoperative tenants so they are not doing themselves any favours
A very good post above.
This is very true its surprising what tenants will do if they know a buyer is an investor and a potential new landlord. Once the logic is explained that the tenant should do there very best to impress the potential purchasers they can perform wonders.
With a little more background regarding the issue with the managing agents its reasonable that the tenant may have been influenced.
On the flip side is a property better off vacant when its for sale. I'm my recent experience the answer is no. Investors seem (is this true) to be assured by having a tenant in place and a justified rental income.
An agents estimate of potential rental returns sometimes holds little creditability and when compared with an existing tenant paying a reasonable rent the latter seems to be prefered.
Our tenants have now refused access for the last 2 Wed opens, have refused to have the auction on site as they do not want all the people in the house and have been unable to offer us a time this week when the photos can be taken.
Our action today is to send them a notice in writing giving them 7 days notice of the photography being next Monday and if they are not happy with that, offer them any time that day. If they are still unable to allow access that day, we will have the property manager bring the master key (and hopefully the disarm code for the alarm) and do it that way. Then, they will be in breach anyway and we will take it to the Tribunal and seek the decision to have them vacate in 14 days.
Unfortunately, these seem to be the type of people that will try everything to stuff up the sale campaign, I hate to imagine what they will try and pull if and when a buyer is interested and wants to have a building and pest inspection done!
Just not worth the angst at the end of the day. Too worrying for all concerned when so much money is at stake, so better to let them know we are serious and not about to give in to their unreasonable demands and gripes. The tenant has since advised that they are moving into their own newly renovated home in March so are not looking to stay on too long anyway…It was their choice to stay on periodic lease and not re-sign to a fixed term lease – that may well turn out to be an expensive decision for them. They are not interested in whether the house is sold to an investor or an owner-occupier. Either way, the sale campaign seems to be what they are upset about.
We have asked the property manager to offer the tenants assistance in finding another property to rent and supply them a reference etc.
Looking forward to any comments or suggestions.
Sue
Why would you offer them a reference after that treatment?
The plan being to get them out of our property as soon as possible, not giving them a reference would delay theings even more.
Hi
As a long term tenant of rental properties I can understand their upset at the sale process but they are still being very unreasonable. I have been in rental homes that have been offered for sale while I've been living in them and it is quite a disruptive process. Mind you, none of them have ever offered me a reduction in rent during the sale period as you have. I believe you've been quite reasonable and obviously they want to not have to move before they can move into their own home. From a renters point of view I would use the proper forms and go through all the right channels as you plan to and if they are still unreasonable give them notice to move out.Since we're talking about this. Can all you investors tell me what you'd rather – a long term tenant who is never late with payments and who takes care of the place paying a smaller than market value rent or short term tenants who pay a higher rent?
My landlord is looking to put up the rent but the house is needing some work. If he increases the rent significantly (which is likely) I will either ask for things to be taken care of or move. We have not been at all demanding due to the amount of rent we pay and have taken care of most things ourselves. We do however realise that this is an investment for him and he is in no way emotionally attached to it and so the less he can spend the better. But, we also need somewhere to live and we've been here for seven years, have rented a house owned by him prior to moving into this one and we are not at all demanding. He has no intention to sell the place any time in the near future. He is also lives in the street with his family and likes the peace and quiet.
I want to the rent to remain low myself as I'd like the opportunity to save some money in order to some day buy my own place. self interest
Your thoughts???
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