My Partner and I have just purchased our first home in Victoria. :) Unfortunately the previous owner had signed a 12 month lease agreement with their tenants only 3 months ago. We would like to move into the house before this lease runs out but from a brief look at the tenancies act it seems like this would not be possible without their consent. We would save over $150 per week living in the house rather than continuing to rent while waiting for the tenancy to end. The rent they are paying is also around 10% less than comparable properties in the area so we are losing potential returns there as well.
How can I get the tenants to move out early?
Are their any legal options I may not have thought of?
Any Ozbargainers been in this situation before? If so what did you do?
EDIT 1: Just to be clear I knew and accepted the property was under lease when I purchased and worst case I accept I just have to wait 9 months. That said I am particularly interested in any responses to my last question. "Any Ozbargainers been in this situation before? If so what did you do?" I don't want to be too unfair to the tenants but would really like them to move out early.
Pretty simple really.
The 10% lower rent is insignificant really.Even if you compare it with other houses in your area. Each house is unique. Other houses might be slightly bigger room or backyard, maybe comes with free gas or water etc etc.
Even if it is 30% lower, it will still be irrelevant to your case anyway. There is no 'potential return' to speak of, since your intention is to move into your house, not renting it out to other new tenants.
Legally, there is not much you can do. Unless you can find something wrong with the tenants, for example overcrowding. But it is not easy, it takes months to solve. Tenants can drag out the process too. Have you at least looked at the rental agreement? The number of tenants signing the lease is not equal to the maximum amount of people allowed to stay in the house. I can have just my name on the lease on a two bedroom house with 4 people living in it. A good REA will have included the exact number of people living in the house in the agreement.
The existence of extra bed is an indication but it proves nothing really. They can just say that they are extra beds, which sometimes are used for guests saying over. Unless you secretly installed a surveillance camera to see the patterns of people staying in the house, you can forget about the overcrowding issues
Which brings you to the two options available to you.
One is to wait it out for 9 months. Financially will cost you around $6000 ( $150 a week)
Two is to politely ask them to move out early or asap by offering them some incentives. How much incentives? that depends.
If they are to break the lease agreement, they will be expected to pay the real estate agent some advertising fee ( normally equal to one week rent) plus continue to pay rent until new tenants are found ( generally between 2-4 weeks)
So if you as the house owner want them to move out early, offer them the same thing. Pay the agents fee ( if there is any) and offer them money equivalent to at least a minimum of 2 weeks rent. On top of that, refund the bond in full.
Give them reasonable time to find new places (2-4 weeks). The cost ?? Probably around $1000 depending on the rent and the time to find new places.