Rent­ing and the land­lord is sell­ing? What now?

Central Telegraph - - REAL ESTATE / INDUSTRY NEWS - –

IT’S the news no happy ten­ant wants to hear: the land­lord is sell­ing.

But as with most change, it’s a lot less fright­en­ing when you know what to ex­pect.

Here are five rules to re­mem­ber when your land­lord de­cides to sell.

The land­lord is al­lowed to sell at any time

In all states and ter­ri­to­ries, land­lords are legally al­lowed to sell their prop­erty when­ever they like. But fear not: the law pro­tects ten­ants from be­ing turfed out on a whim.

Your lease is still valid

Ac­cord­ing to Amy San­der­son, LJ Hooker’s head of prop­erty in­vest­ment man­age­ment, your cur­rent lease (which is also known as a ten­ancy agree­ment) re­mains valid when your land­lord puts their prop­erty on the mar­ket.

And re­mains so after the sale, which means you don’t have to move out when the prop­erty changes hands.

“A land­lord can­not ter­mi­nate a fixed-term agree­ment for the sale of the prop­erty,” San­der­son says.

And so, if the prop­erty is sold to an in­vestor who wants a ten­ant, it’s pos­si­ble you will ex­pe­ri­ence very few changes.

San­der­son ex­plains, how­ever, that it can also lead to a ter­mi­na­tion of the lease, if mu­tual con­sent is reached.

“If you are on a fixed-term agree­ment, but you want to move out be­cause the prop­erty is be­ing sold, you may be able to end the ten­ancy agree­ment early by a mu­tual con­sent with the land­lord,” she says.

If the new owner wants you to move out, they must com­ply with the terms of the ex­ist­ing lease.

Land­lords must give ten­ants no­tice be­fore an in­spec­tion … and you can be there

The land­lord must give the ten­ants 14 days’ no­tice be­fore the first view­ing.

Mean­while, San­der­son says ten­ants “are obliged to make all rea­son­able ef­forts to agree on a suit­able time and day for the show­ing” and must also keep the prop­erty in a “rea­son­able state of clean­li­ness”.

“If an agree­ment isn’t reached to show the prop­erty, the land­lord is only able to show the prop­erty a max­i­mum of two times per week, and must give the ten­ant at least 48 hours’ no­tice each time.”

Renters also have the right to be at the prop­erty when it’s opened for in­spec­tion.

Renters have a say when it comes to pho­tog­ra­phy and sig­nage

The out­side of a rental prop­erty can be pho­tographed with­out per­mis­sion. But if the land­lord wishes to take pho­tos in­side the prop­erty, they must ob­tain per­mis­sion from their ten­ant.

The ten­ant must also give their con­sent to sig­nage and on-site auc­tions.

Renters can get com­pen­sa­tion

San­der­son ex­plains that land­lords some­times of­fer their ten­ants com­pen­sa­tion to en­cour­age them to move out of the prop­erty as soon as pos­si­ble.

“In some states, a ten­ant may give no­tice, even if they are on a lease, once the prop­erty is listed for sale,” she says.

“Many prop­erty own­ers of­fer ten­ants a com­pen­sa­tion for the in­con­ve­nience, and this avoids the com­plaints.”

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