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Oh No, the Owner is selling our house, what can we do?

Discussion in 'The Pub' at netrider.net.au started by carolf_au, Dec 15, 2007.

  1. We've been happily renting our home for almost 4 years, it was brand new when we moved in, close to everything, plenty of room for us, 3 kids, 2 bikes and a car, but the owner has decided to sell :cry: .

    First inspection just finished, they are friends of our neighbours, really like the house and want to live in it :shock:



    We just renewed out lease to January 2009, but the agent wants to know if we would move out, with some compensation... what would you consider to be fair compensation for breaking our lease and kicking us out? Removal costs? Payment of bond on the new place, 60 days to find a new place??

    Any help would be GREATLY appreciated, so that we can go on our terms.

    TIA
     
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  2. All removal costs and the bond on the new place at least, would be a fair start IMHO.
     
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  3. don't know about queensland but here its usually 60 days to find another premises and I'd ask for moving costs as well.
    Hitting them up for the bond for a new place is over the top considering you will get your own bond back when you leave.
    I'd also ask for preferential treatment in finding a new place by the agent.
    Unfortunately these are the pitfalls of renting.
     
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  4. legally they cannot kick you out until January 2009. the lease is a contract so if they were to sell the place, they sell it with your lease in tact.

    they should pay all your costs to move. and you should have as long as you need to move out. try to set a planned leaving target with them, but not a solid one, in case you have trouble finding appropriate accommodation. I guess it also depends on how much grief you want to get from the agent.
     
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  5. They can depending on the state laws.
    In Vic there is always a clause in the contract that allows for people to be kicked out if selling a place or if the owner intends to move in.
    the usual time is 60 days notice.
     
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  6. Yep 60 days in Vic. You might as well wipe your backside with the lease. :roll:

    Go & get a copy of renting rights for Qld & see what that says.
     
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  7. That's annoying. When I was renting out my place, the tenants wanted to renew, but I was sure I'd end up back there soon, so said I wanted to do monthly, at least that way I was sending them signals that I wasn't prepared to enter into a year agreement. It seems to me Carol that they've made the cake and are well and truly into the 4th slice. They got you to sign an agreement, probably in the knowledge that wanted to sell.

    Unfortunately, as Smee says (and I was looking for ways to break my contract) selling IS a method to have the agreement broken. However, they still have to reasonable to you as you can quite easily make it very hard for them to sell. Getting a reference after that will be impossible, so it's a case of scratching backs.

    Good luck, for, despite the shortage, a good tenant is hard to find. Most landlords are looking for reliable, pleasant tenants who won't trash the place. They are not that plentiful.
     
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  8. well our landlord wants to put the rent up 23%!!! :shock:

    so weve written a letter to the watchdog and told them that we think its unreasonable and i think illeagal. now the agent is taking back an offer of 10% to the LL and we'll see what happens.

    plus i think the watchdog is gonna come inspect the place....its reasonably cheap atm but 23% is excessive in anyones book
     
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  9. Well if he wants to up it by 23% all he has to do is say hes selling,your out new tenents in 23% increase for new dudes job done :roll:
     
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  10. The simple fact is that now the property boom has tailed off there isn't a competitive return in owning a rental property in most locations.

    There are only two things that will bring returns to levels similar to other investments and they are *large* rent increases or a resparking of the strong property value growth.

    Neither of those are likely, although rent is increasing faster than CPI (which is in many cases a result of lower returns).

    As an example the family business owned 6 rental properties 3 years ago but are down to 3 now (and will be down to 2 shortly).

    We are only one of huge numbers of small property investors divesting themselves of rental properties and I expect this trend to continue until rents (or property values) alter enough to make owning rental properties an attractive investment again.
     
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  11. Thanks for all your responses. Just so happens another neighbour works for Rental Tenancy Authority, so I'll pick his brain at the Christmas Party tonight.

    We think we'll ask for the bond on a new place, plus reasonable removal costs (my brother smashed the ute, so no mates rates removal this time!) :( . Our lease is lodged, so if they don't come to the party, we can stay here till it expires January 2009...

    What they don't know is that the property hasn't been checked for termites since we moved in, it's due for pest control, there is no insulation, it's stinking hot in summer, the backyard floods when it rains alot, and the neighbours dog howls all day when they're at work!! If only I could pass on these lovely issues to the buyers, maybe they'd be rethinking the contract!!! :LOL:
     
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  12. Total BS dude.

    None of the 60 day reasons outlined in the Tenancy Act can be used if a 'fixed term' tenancy agreement is in effect.

    http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Publications_Renting/$file/RentingComplete.pdf

    '
    When the landlord or agent gives one
    of these reasons for ending a tenancy,
    the tenancy end date noted on the
    ‘Notice to Vacate’ cannot be before the
    end date of the fixed-term tenancy

    .....
    The premises are to be sold or offered
    for sale with vacant possession
    immediately after the termination
    date of the ‘Residential Tenancy
    Agreement’. 60 Days.

    '
    Don't become a lawyer mate.
     
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  13. I cant be certain on QLD however generally:

    A lease is binding on both parties, and one cannot break it without express agreement of the other. A house is usually sold with vacant posession, and landlords usually will not renew a lease due to expire if they intend selling.

    In the event they don't meet your demands for compensation in order to get an agreement to quit, you can choose to stay until your lease expires.

    The question is, whats the reason for the landlord selling? Are they suffering financially due to interest rates etc, and is any mortgagee likely to forclose on the loan if they can't sell? If the answer here is yes, I assume (although cannot be certain) that your lease remains valid, and you will have the mortgagee as landlord until the lease expires, or the mortgagee will sell it with you as tenant until Jan09.

    I think that before you agree to move out regardless of the agreed compensation, it is important in the current rental market boom, that you attain an alternative tenancy FIRST as in Sydney now (Bris may be same) it is very competitive when applying for a property to rent. Often many applicants apply for the same property and all but 1 will obviously miss out.

    I have heard of lots of occasions where prospective tenants will ofer $20-30+ per week more than the asking rental price in the hope of securing the property.
     
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  14. It used to be 90 days for 'no specified reason', now it's 120 days for 'no specified reason' and not within the lease period.

    There is also now a disparity between the notice periods required of landlords and that required of tenants.

    That's another reason often given when people are asked why they are getting rid of rental properties.

    It doesn't make any difference when one has a good tenant, but a bad tenant can be a nightmare to get rid of these days (yes I'm aware that there are also bad landlords before I get flamed).

    It's all a disincentive to owning property... there are simply easier, more profitable ways to make a $.
     
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  15. How much to buy it yourself?
     
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  16. The current owner went into the rentals office, signed off on the new lease, then walked into the sales office and said 'SELL SELL SELL.' We're on a fixed term agreement, so after talking to the RTA neighbour, we have confirmed that we have to agree to move or we can stay till the new lease expires.

    The sales agent came to see us today, we've asked for $600-$1000 for removals, up to $1200 for the bond on the new place, and full refund of the current bond. We will clean house, dry clean carpets and be out by 6 February if the new owners cough up the cash.

    Tweet, we are in the fortunate position of being able to afford up to $100 more than the average person can for rent in this area, so there are quite a lot of 4 bed DLUG houses with aircon available.

    Pro-Pilot you are correct!! Thanks for clarifying that :)

    CamHornet - we have 2 shiny 2007 model bikes in our garage - she with the most toys wins!! So we can't really afford to buy ATM. We currently pay $250 a week for this place, would be $500+ a week if we were to buy it. Maybe in a couple of years when I get a job! House Price $330,000 - interested in an investment with great tenants :wink:
     
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  17. Carol please send me a PM with the info of the house and maybe an ad if it is listed in domain.com.au or realestate.com.au

    Will
     
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  18. :shock:

    That's all a four-bedroom place with a garage costs up in QLD? Here in Canberra that would barely get you a studio apartment! I'm totally moving to Queensland.

    Sorry, don't really have anything helpful to add :grin:
     
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  19. Four bedrooms, ensuite, double lock up garage, dining/family room, separate lounge, decent yard, just no air-con!! Yes we have it good in the Sunshine State :grin: :grin:
     
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  20. In that sort of situation it's crazy not to rent, but it's also a perfect example of why people are selling rental properties.

    Even with negative gearing (now that property isn't increasing in value significantly) your landlord wouldn't have been making money out of that investment property.
     
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