I have recently bought my first IP. The Property is already tenanted and We preferred that because of the assurance of incoming rent from day 1.
The Tenancy was a private agreeement between the former owner/landlaord and the tenants detailing the agreement and securing it for 2 yrs with a rental increase after 1 yr.
There was no Property Manager and the Landlord was directly receiving the rent from the Tenants.
The Tenancy is 6 months in to the lease.
After settlement, does the Tenancy automatically transfer to us ??
If not, do we prepare a new tenancy agreement ??
what are the risks if we dont go ahead with a Property Manager ??
AM2778
Hi AM2778
Sounds like your accountant or solicitor left you in the dark.
In what State of Australia is the property located ?
Do you have the following :
* a paper lease signed by landlord (former owner) and tenant ?
* a tenant bond lodged with the Rental Bond Board ?
* an inbound condition report ?
* a printed record of rent paid to date during the tenancy ?
* application details of the tenant like personal details like drivers licence details, ID, rego, next of kin, references, work contact details,These details would help. If there is no signed paper lease, you and the tenant can create one yourselves, or if not in agreement to do that, you can apply to the CTTT (Dept Fair Trading) to have a tenancy "legitimised" and placed onto a lease document which protects both parties.
Answers to those questions above will help people to help you.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
State where the Property is located – VIC
I have the following:
* paper lease signed by landlord (former owner) and tenant ? Yes. Secure Lease till the 30/04/2012.
* a tenant bond lodged with the Rental Bond Board ? No. The Former Landlord and Tenants are known to each other.
* an inbound condition report ? No. The Property is in really good condition. The Tenants have invested their own money in the Property
* a printed record of rent paid to date during the tenancy ? No
*application details of the tenant like personal details like drivers licence details, ID, rego, next of kin, references, work contact details, – No
I am quite keen to keep them as tenants.The question is, if the lease is till 30/04/2012, can I leave the lease "as is" and just chage the Landlord from the former, to ourselves??
AM2778
You will take over the existing lease at settlement. So you will need to contact the agent or the tenants and tell them to start paying yourself.
I would make sure you look at the bond issue, and make sure you do a condition report asap. Doesn't really matter what they did before you owned it as you are buying as is, but you don't want them to do any damage from now on.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sale of the property does not affect the owner's right to the income, there are only provisions for the tenant where they seek to assign the lease to someone else.
Your responsibilty will be to provide receipts for each period that you recieve income, so it may be prudent to get yourself a copy of brochures from vcat/fair trading with regards to both renting a house and being a landlord to know your requirements.
Even though it has been agreed that there will be a rent increase at 12 mths, you are still required to give the tenant the appropriate notice of the increase ie 60 or 90 days depending upon the legislation.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
