KDD Settlement Agent Perth

Buying a House with Tenants in WA: Everything you need to know

2020-06-22-kdd-blog-feature-image-buying-a-house-with-tenants-in-wa-everything-you-need-to-know

If you want to buy a property in WA, there’s a chance that your ideal property already has tenants. While this can make a great investment, it can also complicate the buying process.

At KDD, our expert settlement agents can help you buy a tenanted property smoothly.

What to consider when buying a tenanted property

Consider your intentions for buying a property. If you’re an investor, an existing tenancy is often mentioned in the advertisement.

If you have plans to develop or renovate the property, you may wish to avoid buying a house with tenants as you will have to wait until the lease expires before taking action.

Your rights when buying a house with tenants?

To protect your rights, we recommend requesting a copy of necessary documents like the lease, Property Condition Reports and rent statement. Also, check the tenant is up to date with payments. 

Lease

Before you commit to buying, you are entitled to know the details of the lease agreement.

You might be wondering if a buyer has to honour the existing lease.

Rent

You will start receiving rent payments from the settlement date. You can work with a property manager or directly with the tenants to arrange the payments and update the lease agreement.

Bond

Make sure the tenants have paid bond and that it was lodged  with the Bond Administrator by the landlord or property manager. It will be transferred to your name at settlement but will still stay with the Bond Administrator  during the duration of the lease (both fixed and periodic).

What will my immediate duties be after I buy a tenanted house?

After you buy a house with tenants, you become the new landlord and have obligations. Maintenance and safety is a priority and in general, you must do the following:

What property settlement agents can do to help

At KDD, our settlement agents can help with buying a tenanted property. We can make sure you have access to all the documents you need and we will also provide copies to the property manager to ensure a smooth settlement.

For more information, please contact us at reception@kddconveyancing.com.au or (08) 9296 8717.

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