It’s the news no happy tenant wants to hear: the landlord is selling.
With the current market representing endless opportunities for property owners, more and more investors may be cashing in and selling some of their investment properties. As with most change, though, it’s a lot less frightening when you know what is ahead of you.
As a tenant, there are a few things to expect when your rental is listed for sale. Lucky for you we have outlined five of our top things to consider if this situation occurs for you.
The landlord is allowed to sell at any time
It is their property after all, and they are entitled to sell if they wish to. But don’t worry, the law protects tenants from being left homeless.
Your lease is still valid
Your current lease (which is also known as a tenancy agreement) remains valid when your landlord puts their property on the market. And it remains so after the sale, which means you don’t have to move out of the property if it changes hands.
And so if the property is sold to an investor who a tenanted property, it’s possible you will experience very few changes.
However, if the new owners wish to occupy the property manager/new owner and tenant need to agree (in writing) to end the agreement early (this may include compensation for the tenant).
You must be given notice before anyone enters the premises
The landlord must give the tenants 14 days’ notice before the first viewing.
Tenants are obliged to make all efforts to agree on a suitable time and day for the showing and must also keep the property reasonably clean and tidy.
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 they plan on opening the property.
Renters also have the right to be at the property when it’s opened for inspection.
Renters have a say when it comes to advertising/marketing the property
The outside of the rental property can be photographed without permission, however, when it comes to the inside, the tenant must consent before photographs are used in advertising. This is due to the fact that the tenants’ belongings will appear in the photographs.
Things may change once the property has settled
An attornment notice (i.e. a letter) must be given to the tenant advising them of the new property owner, the new owner’s details and where to pay rent. A Change of property manager/owner (Form 5) is given to the RTA for the bond.
Fixed term agreements
The property owner cannot make the tenant leave because they decide to sell the property. The tenant can stay until the end of the term, and the purchaser will take over the tenancy.
The property manager/owner and tenant may agree (in writing) to end the agreement early (this may include compensation for the tenant).
If the purchaser requires vacant possession, the property manager/owner must give the tenant a Notice to leave (Form 12) or Notice to leave (Form R12) for rooming accommodation.
The tenant must have at least 4 weeks’ notice from the signing of the contract of sale.
The Queensland legislation states:
- Landlords must give renters written notice of their intention to sell the property and provide 24 hours notice before the first inspection. And they need to provide 24 hours notice before any subsequent inspections.
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, landlords can evict tenants on four weeks’ notice, once a contract of sale has been signed.
If you have any further questions or queries regarding this matter, call your property manager or visit: https://www.rta.qld.gov.au/renting/during-a-tenancy/when-a-property-is-for-sale