I have been a longtime reader of this forum. I am hoping someone may be able to offer some advice.
My family and I are in the process of purchasing a PPOR property in Newcastle NSW and are currently renting in the lower hunter. The house we are buying is presently tenanted and the tenants have been there for 4 or 5 yrs. The lease has expired and the tenants are on a "week to week" From what I have seen during inspections they seem to be very good tenants and have always allowed reasonable access for RE inspections as well as builder, pest etc.
The vendors solicitor wanted to put a clause in the contract which allowed up to 3 months for settlement to cover the vendor if the tenants do not leave during the 30 day notification period.
This does not suit us for many reasons including;
1. We are currently renting and need to give notice
2. We have schools and employment (for wife) organised is the area of the new house.
My solicitor tells me that very 2nd property that he deals with, which has tenants, the deal goes "pear shaped' and end up going to the tribunal. The vendors solicitor read the article in last weeks Telegraph about the rental market in Newcastle being very tight and is trying to (naturally) protect the vendor. The agent says he has not had a problem with this type of deal in 10 yrs.
The agent is suggesting I do not give notice to our landlord until I have vacant possesion. I will then be up for 4 weeks rent if the tenant does in fact move out in time.
I am on the verge of pulling the plug on the deal and buying a place which is owner occupied.
Any advice would be much appreciated.
We had a similar problem with tenants from hell in the last IP we bought. We got it cheap because nobody wanted to deal with the issues at hand - too hard.
Offer the tenants a months rent to vacate immediately. They will because they think it is a good deal. I would negotiate with the vendor to say pay half and so it will cost you another say $600 but it solves all the problems and you get vacant possession - too easy!
The only way to guarantee your sanity is to include a clause within the contract which specifies that the property is sold as "vacant possession".
It is then the vendors problem to ensure that the property is vacant at settlement.
You are better off having it vacant for four weeks, then having to put all your plans on hold indefinitely should you have trouble shifting the tenant.