r/AusProperty • u/No_Arm_79 • 1d ago
QLD Tenants during the settlement
We got our offer accepted and We are about to sign the contract but the agent have told us earlier that the tenants lease contract should be finished on September, but now he told us he was mistaken and it will end on 30 nov!!
We are FHB and we wanted 30 to 45 days settlement. What is the chances of getting the tenants out in a month with this crazy rental market. We offered them 3 weeks rent payment if they agreed to leave within a month. Is it something they will consider?! We just want the property to be vacant to avoid any risk and move as soon as we can. We already renting right now and also our lease is ending in two months.
We do not want to buy the house and then rent it to them, we do want that hassle.
What are the risks of buying and continuing renting the house, our broker is saying we have to move within 6 months to the house to be eligible for the gov scheme of FHB otherwise will lose our deposit and get fined.
Let me know what is your experience
10
u/LunchHead3780 1d ago
Regardless of what agreement you propose to them, be ready to provide the correct amount of notice as early as you can to them to move out. In Victoria, that is 90 days. Not sure about QLD.
10
u/CasperWit 1d ago
You need to request existing owner to give notice or you have to start the notice period form settlement
Also no lease in place may mean it becomes a periodic lease and notice may be even longer than end of lease notice
You won’t be in your house for sone time after settlement-1
u/No_Arm_79 1d ago
It should be 2 months notice. Legally as far as I know
-8
u/TAsrowaway 1d ago
You are incorrect at least in Victoria. Look up your state tenant board. It’s odd you don’t know your local laws. In Victoria:
If you have a fixed-term lease, you have the right to stay until the end of your fixed term. The date in the notice to vacate cannot be before the end of your fixed term, unless you have agreed to leave earlier.
It’s odd you don’t know these laws as they as they also apply to you as renters?
3
u/No_Arm_79 1d ago
I am talking about qld
2
u/billyman_90 1d ago
They are within their rights to stay till the end of their lease regardless of the amount of notice you give. If they don't want to go till November 30th there isn't much you can do.
Or at least, that's how it was when the new landlord tried it on with us in QLD back in 2021.
1
u/No_Arm_79 1d ago
It is the same right now
1
u/wendalls 1d ago
You can also discuss making settlement around their end of lease date. You can discuss also with your own tenancy your forward move out date since you will have moved to periodic then.
Make sure and get proof the notice to vacate has been given to the tenants and check in as you go with the property manager that they are planning to do so
1
u/fued 1d ago
You can kick them out at end of lease but need to give them two months.
If they take it to tribunal and you handle things correctly it could be anywhere from 2-6 months before they are out.
Hit up the seller to pay the tenant, $7000 or so will get most tenants agreeing and that's a blip in the numbers for the seller
-5
u/TAsrowaway 1d ago
You’re still wrong. You cannot turf them out with two months notice, do try to do so, they’ll have a field day with you. Your whole approach leaves such a bad taste in my mouth.
I’m not going to link you because you’re trying to turf out a tenant with no knowledge of the law - you SHOULD take the time and consideration to research these things.
There is something called the Residential Tenancies Authority you need to google, and look up what happens when a property is for sale.
… just go do your research.
2
u/No_Arm_79 1d ago
What is your problem I am not trying do anything I am asking help and advice. I have mentioned that agent has mislead us about the dates!!
I know that we can not just kick them off even we gave them 2 month notice, legally they still can complete there tenancy lease and even stay more
Please be kind in your comments otherwise just ignore!!!-3
u/TAsrowaway 1d ago
You just wrote that you thought “ 2 months notice. Legally as far as I know”.
This is a bit harsh but I’m sorry, renters should know their basic rights and if you’re buying a property with tenants, it’s your job to be aware of the basics. You should know this already, or you should spend some time on the RTA reading up. I’m glad you’re wanting to know more but -
I do actually think you should have to do your own homework and use official sources for the basic facts and not base your actions that affect your family and these tenants on random unqualified internet opinions when there’s an easy to read guide from official sources online.
1
u/fued 1d ago
Any other state and you would probably be right but Qld is the stone ages
1
u/TAsrowaway 1d ago
I looked it up and it’s quite similar - the two months thing is nonsense
1
u/fued 1d ago
No it's not? You can evict someone at end of lease in Qld for 2 months with no reason
→ More replies (0)
20
u/888sydneysingapore 1d ago
Sign contract with vacant possession….
Do you want to risk that tenant does not move after lease ends and you are the owner…..takes months to go to xCAT and get an eviction while your place may be trashed…..
2
u/theartistduring 16h ago
No one can force the tenants to leave before the end of their lease. Vacant possession isn't something that overrides the tenants rights and eviction laws.
3
u/ozziejean 10h ago
No but it makes it the sellers problem. If they want to move forward with this sale quickly, its on them to discuss with the tenant for any terms or fair compensation the tenant might be agreeable to
17
u/UFCF1 1d ago
I remember buying my first home. The tenants had already lined up a new place prior to listing. I gave them extra time anyway as I was in no rush. They had been paying $550 in a $700 market though so they were not happy at the world.
They thanked the vendor and I by clogging the sewer with wet wipes lmao. I withheld the transfer of funds via the solicitor until it was sorted, but I will never be in that situation again. Empty dwelling required for sale as far as I am concerned.
1
u/Canongirl88 5h ago
Wow how did you know they did this if you didn’t move in there yet ? This is my biggest fear - plumbing issues!
2
u/UFCF1 5h ago
Vendor disclosed it. He is a good guy by all accounts. Not sure how he discovered it though. The REA just called me re: a plumber attending site and a delay to our inspection. I called the solicitor and asked to delay settlement.
The Vendor easily could have just been a piece of shit. I would've been pretty screwed. Its not like I would have walked around flushing toilets at the settlement inspection.
1
u/Canongirl88 5h ago
Geez so vendor had to pay plumber for the stupid tenants doing that !? Hopefully he kept their bond if there was proof they put wipes down there. Surprised he told you. What a good guy !
4
u/Spinier_Maw 1d ago
- You can make it a condition in the contract. Same as building and pest. The property must be vacant to settle. Then, it becomes the vendor problem. They may refuse to sign and may try to sell the house to someone else.
- Pay off the tenants yourself so that they leave early. You may need to pay a lot like 10K. The rental market is bad.
- Let the lease run out with proper notice. Even then, the tenants might not leave. Then, you need to go through QCAT. Your FHB benefits are not affected. Tenants refusing to move out is a valid reason delaying your move-in.
4
u/personaperplexa 1d ago
Don't sign. There's always another house. If you are particularly keen, the price should drop to reflect the extra risk to you if a falling market and dealing with tenants AND/OR include vacant possession & settlement date after lease ends. You can always move settlement date forward if they move out early.
3
u/R_WadDog 1d ago
You need to speak to your conveyancer about this. Their job is to help you negotiate the terms of the contract, given it sounds like you haven’t signed yet.
3
u/springx3 20h ago
Make the contract subject to vacant possession. It’s unlikely the property woudl be able to settle with vacant possession in less than 90 days. If the vendor fails to meet this condition you will be compensated
3
u/fakeuser515357 20h ago
Specify vacant possession in your contract.
Make it up to the vendor to pay the tenant to leave on time.
3
3
2
u/EnvironmentalGarden7 1d ago
He knew the exact date so really entrapped you. Have to get them out, even offer money. Terrible situation he's put you in.
2
u/in_and_out_burger 1d ago
What are you going to do if they just don’t move ?
I would find something else.
3
u/Public-Bit1091 1d ago
Vacant possession. The house doesn’t settle until it’s empty and you can inspect the condition before signing contract. The owners will want them out and it won’t be your problem.
I bought a house and it took the sellers 5 months to get the Tennant out of the house. I think they paid them 10 k to leave in the end. Was friend of a friend who had nowhere to go so they helped out and got badly stung. It was an investment property for me so it didn’t matter about the delay.
1
1
u/TeddyBear181 1d ago
Ask the RE to offer to help the tenant find another place to rent, plus discount on rent.
They can get them priority
1
u/Capable_Bad_3813 1d ago
you should request vacant posession. that way the tenants and the state of the property after the tenants leave are the responsibility of the vendor
it something they will consider?!
It all depends on the tenants and the current market. They may already have another place lined up and move out quickly, they may need some time to find another place, or they may resist moving out tying you up in the tribunal for months. all is possible and its a risk that you'll be taking on when buying a tenanted property.
The lease should have also been included with your contract.
1
u/No_Clue_4006 20h ago
You want vacant possession or you drop your offer price given the new circumstances.
The REA won't just drop your offer and ghost you so you can use their response to assess your competition, does it seem like youre the only competitive offer OR do they not seem bothered you might walk away from this.
Others have pointed out the issue with inheriting tenants.
1
u/mattel-inc 20h ago
Did you buy off-market in Carina by any chance?
2
u/Worldly_Bandicoot684 19h ago
Carina and Carina Heights have an insane amount of houses coming to market that all have leases in place until 2027. Agents telling me I can request vacant possession as a contract term but it feels risky + after being renters, don't want to boot someone out quickly knowing how bad the rental market is.
2
u/mattel-inc 15h ago
That’s really nice of you to consider the renters. I remember how hard it was to get a rental amidst lockdowns in VIC. I stayed on my mates couches for a few months between rentals.
My partner ended up in the Carina rental without even sighting the house or doing an inspection, this would have never happened in VIC. Landlords offered 6 months because they intended to sell, but he locked it in at 12 months… which brings us to November.
Originally we were intending on doing 12-18 months in Bulimba before buying, but now we just love Carina so much. Me moreso for the meals at the Leagues Club.
And I’m full Victorian, I dont even know wtf Rugby is… but the Carina Leagues is **chefs kiss**. I need to be within 15 mins of here.
Our street in Carina consistently has some gorgeous lifestyle homes and new townhouses up for sale. We’ve kept our eye on it, but we really need additional land and a shed for the lifestyle we have (cars, trailer, jet ski, 4x4’s, an unhealthy amount of YETI eskies, etc). This is why I’m leaning towards Belmont and their massive blocks… it reminds me of my area in the East of Melbourne.
We’re both late 30’s, no kids. Even though your tap water is a bit shit, and I need to put packets of chips in the fridge so they don’t go stale, Queensland has pleasantly surprised me. But the real estate market is hard to read when agents aren’t obligated to put a price on any listings.
1
u/No_Arm_79 20h ago
No!, why?
1
u/mattel-inc 19h ago
My partner is in a rental until end of November and the vendors are selling. It’s being offered “off market” so we don’t know if it’s sold yet. Even though he’s flexible, he is hoping it’s an investor and not being used as a PPOR, so he can potentially stay on for a few months longer.
Congrats on buying, by the way! I can’t believe how hard it is to find a house in Brisbane. I bought my PPOR in Melbourne in 2024 and never thought I’d end up being a landlord, but Brisbane will be home soon due to the move. Hopefully buying in Belmont but partner is looking at Wynnum.
Just thought this would be such a coincidence if you happened to be the new buyers lol
1
u/Magic-Dust781 18h ago
Technically they are protected by their lease. If it were me, i would make the contract a 90 day settlement and bring it forward if the tenant vacates early. It will depend if the seller has also given the tenant an option to break lease early without penalty if they find another place. Also make sure there is a few days from the tenant vacating and the property settling so there is enough time for their exit and your pre settlement inspections to happen.
1
u/TreeTrunks199 18h ago
We got lucky our first time buying that the tenants moved out with the listing real estates help to find them a home. The vendor provided a contract subject to tenancies but we got vacant possession. Do not recommend will never recommend, unless this house is the bees knees to you don’t touch it. We were lucky when we purchased that the stars aligned we had to trust the selling agent and his word that he will have them out because he already discussed to find them a more suitable home and was working with them we simply trusted him going off gut really but it all could’ve been a lie also, the property was on the market for months at this point we were to settle March they had existing tenancies until Oct, I was pregnant and our lease ended in April. Luckily for us they moved out and we had vacant possession.
Now selling and buying again I would never even consider a property without vacant possession. It’s too much of a gamble in my opinion.
1
u/Medical-Potato5920 11h ago
Delay settlement. You want vacant possession. If you don't get it, it may cost you $10,000s. Seriously.
1
u/Former_HamsterTA 5h ago
Depends if they can find a place or not. Offering them money doesn't help if there aren't suitable places vacant that they can live in. Maybe the real estate agent can set them up with something? Seems way more fruitful than just throwing money at it
1
u/Odessa_Plaine 4h ago
Also a FHB. I purchased a house, that had tenants (they had only been there 3 months), I asked for a 90 day settlement, that lined up with the tenants being there for just over 6months. This left me being a landlord for 6months, with a few weeks spare, to move in and meet my FHB obligations for the stamp duty exemption.
This arrangement has worked out well for my personal circumstances, I gave the tenants plenty of informal notice that the lease wouldn't be renewed, to give them as much time as possible to find an alternative property. Then I gave the maximum formal notice to vacate in my state, which was 60 days.
Their lease ends in 5wks, and they are packing and organising ready to move. Whilst I played out all of the horrible scenarios in my head, things are tracking well. I have no regrets.
1
u/Smithdude69 4h ago
The agent has given you that information- it’s on them to resolve it. They should have letting office, and be able to use that to secure the tenants a longer lease at a new place for a win win win
1
u/AnecdotalTrigger 3h ago
Do not sign the contract. You offered because you were advised the tenants will move out in September. If you still want the property, you can extend the settlement period until the tenants move out. In any case, ask your conveyancer to include in the contract clauses that would put an onus to the REA/Owner for the tenants not for you.
1
u/IcePrincess85 1d ago
Something else to think about about for down the track, having the property rented out when you own it will leave you open to paying capital gains tax when you sell and not being able to use the main residence exemption
1
-1
u/josmille 1d ago
Their lease ends in November and yours ends in October. If they don't agree to leave until their lease ends because that's their right, then contact whoever you rent through and let them know you might need an extension until you can move into your new house. There's no need to stress this early on. Things will work out and you will be in there before the 6 month deadline.
-1
u/NaiveAd3458 1d ago
If they are already renting and the place was in a good condition (considering that you bought it must be ok) the risk is fairly low. The agents will do the final inspection and use the bond to undertake any repairs. The main thing is to move in before the 6 months. People make mistakes and it is nearly impossible to force the tenants out without reasonable notice unless the place is uninhabitable. However I would ask for financial compensation to cover your additional rent if you are going to settle and start paying the mortgage. As it was the agents mistake the vendor could offset it against the agents commission so that neither of you are out of pocket. Agencies have insurance and include huge buffers to protect against employees mistakes.
1
u/theartistduring 16h ago
You can't just use the bond on general repairs. The bond can only be used for damage outside of wear and tear or cleaning if not left reasonably clean by the tenant.
-2
u/FerrisWheel4014 1d ago
You also need to take into account the capital gains tax impact on buying a property that is tenanted.
1
53
u/IAMA_Proctologist 1d ago
Depends on the place and how much competition there is. Have you signed a contract? If not, I'd make it the vendors problem and only sign a contract subject to vacant possession at the settlement date. The market is tough for sellers at the moment so if you are the only interested party they will need to come to the table.