Should they stay or should they go....Tenants that is???

Viewing 5 posts - 1 through 5 (of 5 total)

TheShoulderGuy
Participant
@theshoulderguy
Join Date: 2007
Post Count: 44
January 24, 2008 - 10:13 am
I am considering purchasing a property for renovation which has tenants in place paying under market value rent on a Lease agreement until June 2008. What are my rights as the purchaser?? Do I have to keep them on?? Are we able to negotiate vacant possession or a new rental agreement between both parties at a higher rent?? Any pitfalls in buying IP with tenants in place??
Thanks for your help
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 24, 2008 - 1:27 pm
negotiate vacant possession or they will become your problem.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
L.A Aussie
Member
@l.a-aussie
Join Date: 2006
Post Count: 1,488
January 24, 2008 - 4:52 pm
If you want to do renos then you need to get rid of them, so as Terry says; buy with vacant possession, and with luck, you may be able to time your settlement for when the tenants have left (longer settlement).
trakka
Member
@trakka
Join Date: 2004
Post Count: 257
January 24, 2008 - 9:33 pm
You may want vacant possession, but with a fixed term agreement (which it sounds like they're on, as it has an expiry date) you're stuck for that duration. The vendors may want to give you vacant possession but they're unable to, unless they have grounds to evict.
The only option would be to ask the tenants if they're happy to leave, but that'll probably cost you. Just be well aware, though, that if they don't want to move, they have every right to stay until June, so don't get them on the wrong side!
lifeX
Member
@lifex
Join Date: 2004
Post Count: 651
January 25, 2008 - 1:44 am
In Vic, You must give 120 days notice to vacate if you have no reason to evict, and this must fall on a date after the lease expires. So to have access in June, you'd have to give notice 4 months earlier.
The rights of the tenant to live in house are very well protected by law, doesn't matter that it is your house.
…if it is a single mum or a family living in hardship, it could be a very long time before you get access to property.
Maximum rent increase is 5 or 10% per year too.
If you are desperate, you could negotiate with tenants and offer to pay their relocation costs if the deal is still very profitable.. they may choose to move out earlier than they are obligated.