I’m looking at buying my first property, I intend to live in the property, with my child. My issue is every property I see in my budget has a tenant. I have received conflicting information. I have been told by my mortgage broker that I can give notice to the tenant that I am moving in, as long as I follow the landlord rules which I believe is 3months. I have been advised by a realestate agent that the tenant has the right to stay for the duration of the lease. I can’t afford a mortgage and rent, Is there a lawyer on here that can clarify? I know the rental market is really bad, I feel terrible for the tenants. But I have been asked to leave the place I rent, and I can’t get a rental myself (my history is good), buying is my only option at this point.
7 Replies
I didn’t renew the lease for my tenants when I sold, so they had to move our. They just have to give notice maybe 2 months.
Which state? In Qld if the property is tenanted the tenant does not have to move until the lease expires. Both you and the tenant can negotiate to break the lease but the tenant will most likely need to be compensated $$. We rent and have just been through this. We still had 9 months on our lease. No matter who purchased the property we made in clear that we would not be negotiating to break the lease early. Luckily for us it was purchased by an investor.
It must depend on the type of lease. I have rented a house that was for sale before, I was locked into 12 month leases but if a buyer wanted vacant possession then I would have had to find a place by settlement which eventually happened. Luckily it was a different time and I found a house easily. Whatever the case though, that tenants rent would go to you wouldn't it, once it's yours??? That would help you juggle the both without putting someone else out on the street giving them a chance to find something. In the scheme of things 3+ months is nothing when it comes to owning a house in years to come it will be a distant memory.
This is state based. Phone your state based rental authority
Definitely state based and dependent on the lease.
The current owners, if they are not on lease, can give notice to vacate. Because the house is on the market, in nsw, they tenant will get 90 days. If on lease, legally, you can not break the lease, but can give notice that at the end of lease they will be given notice. You can make an orangment with them that break the lease with no consequence but they have a right to refuse
I’m a Property Manager
Legislation in NSW is
If there is a lease the tenant can stay or they can give 14 days notice to vacate.
If there is no lease then 30 day termination will be sent for vacant possession once contracts are unconditional. Meaning you will have vacant possession by settlement.
I have in the past negotiated tenants to vacate earlier than the lease with incentives like rent free periods to help them gather bond for their new property and helping those tenants by giving great references (if they are) to help give them the edge to be accepted in another property.
My incentive would be a bigger rent free period the earlier they can move from the property with that amount declining the longer they stay.
You just need a great agent to assist you with this process. I find a lot of newbies have no idea and lots of wrong information is given. Sometimes tenants also get the shits with these circumstances. They can become difficult.
Pay close attention to how easily you get access to the property for inspections and how the home is presented. It will give you an indication of how good the tenant is and ask lots of questions about the tenants and if the agent will help move them on for you and give your solicitor those communications as well so you have assistance (some agents will tell you anything to get a sale done)
Good luck