Subscribe to Newsletter
Investing and Tenants

Investing and Tenants

Investing and Tenants

When buying or selling an investment property, beyond the location and condition, you also need to consider the tenants. 

Buying With a Tenant

  1. If you are buying a property that is already tenanted you will need to honour the terms of the current lease - this means the length and rent charged

  2. We recommend that you request a copy of the tenants ledger and the last routine inspection so that you can verify the quality of the tenant

  3. Research comparable properties to see if it is returning the current market rent. If not this could be an opportunity to earn a greater return on your investment

  4. Keep in mind that the rent cannot be raised until the tenant has come to the end of their lease, and must be given 60 days notice of a rent increase

 

Selling With a Tenant

  1. If your tenant is in a lease, remember you will be selling the property with that lease in place – this could be attractive for someone buying as an investment, but limit those who are looking for somewhere to live

  2. Your agent needs to give the tenant 14 days notice that the property will be listed for sale

  3. Keep in mind that once your property goes on the market, the tenant can then give notice to vacate (14 days) even if they are in a lease. You cannot make a tenant vacate if they are in a lease

  4. Keep tenants informed of open and auction times, and make clear plans for when your agent can take people through. Tenants need 7 days notice of all open inspections

  5. It is wise to offer for the property to be cleaned pre-open, so that it is looking its best for opens and puts less stress on the tenant

by Tanya Demello on 05 December 2014

Filed under Places