Selling a Rental Property With a Tenant
Located in: What the experts say
In the past 30 plus years that our company has specialised in investment sales, selling a rental property with a tenant in place was always considered a benefit as there is continual cash flow to the owner and a sitting tenant the day the property settles, with ongoing cash flow continuing to the new owner without missing a beat.
However, in recent times lending criteria has changed significantly and swung away from the investor and predominantly most sales are made to owner occupiers, hence a property with a long tenure to a sitting tenant can be to the detriment to the seller, as the purchaser can’t move in once purchased if there is a lease that extends beyond that date.
Having said that, it is possible and we have been instrumental in many places where we negotiate a surrender of lease. This has occurred once again to the benefit of all parties which frees up tenants to move elsewhere, maybe with minor compensation, and making the property available to move into. When in doubt, seek clarification from experts in the field.
If you want to get out of the renting trap, click here to get a copy of our investor kit to get you on your way!
July 20, 2017
Posted in: What the experts say