Buying a tenanted property
Published on 23/12/2020
If you are considering buying a tenanted property it is important that you ask the right questions such as how much the rent is, is there a bond held, how long have they been in the property for, have they been issued any breach letters/notices, how many people, pets, etc. to mitigate any ongoing potential risk. The tenancy agreement terms are important as well.
The agreement between the tenant and the current landlord are transferred to the new property owner if it is a fixed term tenancy upon settlement. A fixed term tenancy cannot be terminated prior to the end date without the consent of the tenant. Taking on the tenants can be good or bad depending on how well the tenancy has been managed.
In addition to the above questions, you should also request a copy of the tenant’s rental ledger to determine that rent is being paid on time, the tenancy agreement, property condition report and the bond lodgement form. If you are considering buying an investment property, please feel welcome to speak with one of knowledgeable team members with any question that you may have.
DO YOU OWN ANOTHER INVESTMENT PROPERTY?
More often than not, consolidating all of your rental properties with the one agency can save you time and money. As KPI, we are boutique which means that your property will not get lost in the numbers. We manage properties all over Melbourne so if please feel welcome to contact us to find out how we can assist in facilitating this process on your behalf.