Hello, I just wonder if anyone can give me information about getting a tenant to move out of a house my husband owns. He is the sold Landlord but has just recently been diagnosed with Cancer. We are trying to work out he best way to sell this property and is has been mentioned by a friend that the Tenant may make it difficult. I wonder want it the best way to minimize this problem. Can he claim financial hardship? How long is the minimum notice we need to give the tenant? thanks
Tenant to Move out as Landlord Is Unwell and Needs to Either Sell or Relocate
hsk on 05/08/2016 - 14:41
Comments
OP, I am sure you can sell the property with tenants contracted to it. It simply means that prospective buyer will take over your rental contract. Sorry to hear about the news.
I think the OP's friend thinks that the tenant might make it difficult for them to sell, not that they can't sell. I could be wrong.
thank you I do realise this with the tenant on a lease, but they are not the very best of tenants regarding keeping up with rent and they do randomly do damage. I am not sure they are an asset to the property neither is the current managing real estate so thought that maybe vacant was a good option. I have spoken to the managing agent but really there are not so interested in offering advice. :-(
Check your rental agreement. There should be a clause somewhere regarding termination of rent.
Ask your rental agent for the earliest possible termination date. I am sure they have a legal obligation to answer that at least. If you are happy with the termination date then instruct your rental agent to terminate the lease accordingly.
Sack your RE Manager. With their hand in your pocket each month, they should bend over backwards to help you.
In Qld, AFAIK, 2 months notice minimum or till end of lease, whichever is longest. You don't have to give a reason, just notice not to renew.
Most prospective buyers will ignore the tenant.I have spoken to the managing agent but really there are not so interested in offering advice. :-(
Then what are you paying them for?
If they keep damaging the property and not keep up with the rent, would this not be just cause to evict them?
they are not the very best of tenants regarding keeping up with rent and they do randomly do damage.
some people deserve an open roof accommodation.
How long is left on their lease? If less than 6 months, can you just wait it out and not renew the lease?
Just beware that if you removed the tenant and it took a long time to sell you'll have to still pay the mortgage so you could dig yourself into a financial hole
Talk to some prospective Real Estate Agents on how to get the most money out of the sale.
Which state is the property in? (NSW/QLD/VIC/etc)?
Check with your state's tenancy union, you can issue a Notice to Vacate to the tenant for No Specific Reason.
And all the best to your husband! Ask him to stay strong! :)
We were renting while we built our house. The landlord wanted to sell and let us know. We kept the house in great condition for the open for inspections and because the landlord knew we were building and that having to shift into another short term rental before finally moving into my house would have been very inconvenient he held off giving us notice as long as possible. It was great… They worked with us and we worked with them. Agent had never seen a property handed back in such great nick.
Sounds odd that your agent is not offering any assistance with this and not just interested in the sale. A friend of mine has been asked to move out as the Landlord wants to move in at three months notice ( Qld). All the best.
If on a periodic lease or ending soon (say less than 6 months), just send them a Notice to Vacate with the appropriate reasoning.
3 options I see (if you are in VIC):
(1) Notice to vacate for no specified reason = 3 months from notice.
(2) Premises to be sold = 60 days (though sale must happen first)
(3) Premises to be occupied by landlord or landlord's family = 60 daysAny trouble = tribunal
No specified reason is 120 days notice plus postage….
now that we are going to organise a sale the agency is ringing me daily… shame they could not have offered better service when we were just a landlord and not a vendor :-)
Yeah - no doubt!!
Can I ask why you want to sell? I understand your husband has cancer, but a lot of cancers are treatable and he may recover and have years of life ahead (apologies if it is terminal already) - but just trying to point out that if it's a good investment that you may benefit from keeping it. If you need to sell to fund the treatment or take a big trip or something then that's a reason to sell, but don't think you need to sell just on the diagnosis.
You may also want to consider looking into some Capital Gains Tax (CGT) reduction strategies before actually selling. Depending on his and your taxable income, if his is high income he will pay max CGT if you sold now. But if you wait till after his passing and you are in lower tax bracket (or have kids on lower brackets to transfer to as well), you may save CGT - but obviously check with your accountant! (and depending on the property market if it's better to sell now or later)
If he doesn't have a principal place of residence, you could consider moving in - then after his passing it's GCT free.
Also, if you do sell, watch out for agents that give you price guide which seems lots higher than what you are expecting. You may think "oh that would be nice to get that much" - but they are "buying" your listing, and after a few weeks/months you end up having to drop your price to a reasonable level which takes up extra time compared if it was priced well initially. They should give you a list of recent comparable sales to show how they determined the price the give.
You may want to do a bit of work on the place to tidy it up for sale too. (the only time most places get work done! :) But with tenants in place it's a bit tricky - you could do some small jobs (and repairs if they've damaged the place - which they should pay for) but to do big jobs like redo the kitchen or something then you have to wait till they move out but then you miss out on the rent - so a bit of catch 22 there.
Thank you good advice. Unfortunately the sale is due to his loss of income as to keep up with or mortgage payments without his wage for a minimum of 6 mths will not be possible. We (I) have started talking to agents but feel way out of my depth as behind what they are saying they seem to have an agenda..
Ok - that is unfortunate, but logical reason to sell. You could try posting on https://www.propertychat.com.au/community/forums/general-pro… to ask for recommendations for a sales agent in the area where your property is, as someone may have had good dealings before (or who to avoid! - real estate agents do tend to have the used car salesman vibe!)
As it's an investment forum they will possibly want to know why you are selling, and a bit like me think you will be losing an asset - but they will understand (as do I) that if you can't pay for it, it's not an asset, but a millstone.
There's possibly ways of restructuring the loan if you did want to look at keeping it, eg the bank may allow you a loan 'holiday', or you could redraw some of your funds if you are ahead in your repayments, or possibly switching to interest only which will reduce the repayments (if you are not on it already - but may be a bit tricky to do anything if he doesn't have income to apply for change like that) - there are mortgage brokers on that forum too who might have other ideas that you could ask.
But if you want it gone to concentrate on the treatment, I can understand that too. My dad had prostate cancer a few years back and it was a bit of a turbulent time, but he's going ok now.
Thank you ☺
Sorry to hear the sad news.
The last time I rented over a year ago the landlord is required to give us 3 months notice after the lease expires.
Was this property rented out through an agent? If so you should seek advice from the rental agent on the best way to go about this.