Selling a Rental Property

If the property owner decides to sell the property, the tenant can be affected in a number of ways.
Property For Sale Brisbane
In a fixed agreement, 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 new owner will become the lessor.

If the tenant is in a periodic agreement, and the property owner requires vacant possession, they must give the tenant a Notice to leave (Form 12) or Form R12 for rooming accommodation. The tenant must have at least 4 weeks’ notice from the signing of the contract of sale.

Fast facts – all tenancies

  • The property manager/owner must give the tenant a Notice of lessor’s intention to sell premises (Form 10) which must include details of how they plan to market the property.
  • An open house or on-site auction can only be held if the tenant agrees in writing.
  • If the property is put up for sale within two months of a tenancy starting and the tenant was not informed that the intention to sell the property at the time of signing the agreement, the tenant has the option of ending the agreement with two weeks’ notice. The tenant must give the Intention of notice to leave (Form 13) to the property manager/owner within 2 weeks after the end of the initial 2 month period of the tenancy.
  • If the selling agent is different from the agent who manages the property, the selling agent must also give the letting agent a copy of each Entry notice before entering the property.
  • If a property is being repossessed by a financial institution which had not agreed to the property being rented, they can give the tenant 2 months to leave (30 days for rooming accommodation), using a Notice to vacate from mortgagee to tenant (Form 19) or Form R19 for rooming accommodation. If they had agreed to it being used as a rental property, they can end a periodic agreement with two months’ notice, but cannot end a fixed term agreement earlier than the end date unless the tenant agrees.

Should I allow pets in my rental property?

rental property accepting Pets
While many of us have heard horror stories of damage caused to rental properties by pets, making your property “pet-friendly” can have benefits and actually improve profitability on your investment. A well-managed pet friendly rental property may assist in broadening your enquiry level and reduce the vacancy period between tenancies. Pet owners are usually more settled and less likely to change rental properties frequently.

A “Pet Agreement” is signed by the tenant and outlines the terms of allowing the pet at the rental property. These terms may include:

  • Pet not to enter interior of property unless by written agreement.
  • Pet must not interfere with the neighbours quiet enjoyment.
  • Property is to be fumigated and receipts provided at end of tenancy.
  • Tenant is responsible to rectify any damage caused by the pet to the gardens and property.
  • Tenant to keep premises free of pet “waste”.

Allowing pets may be worth considering in order to increase the enquiry level or minimising vacancy rates on your property.

Ensure your Property is Safe and Reduce Your Risk!

As your Managing Agent we have a legal obligation and duty of care to ensure that the property is safe, clean, and fit for the tenant to reside. Gone are the days where you could rent out a run-down and unmaintained property by reducing the rent or targeting vulnerable tenants who would accept such conditions.

Property investing has become serious business! Yes, there are great long-term profits to be made as the market values appreciate. However, every investment needs to be nurtured and looked after.

As an investor you should be scheduling the following at the necessary times (which could be every year or every 5-6 years).

  • Trimming of large trees.
  • Clearing of gutters.
  • Pest control checks.
  • warning danger sign

  • Building checks.
  • Air conditioner Servicing.
  • Pool safety checks.
  • Safety switch and electrical checks.
  • Glass compliance checks for older properties.
  • Risk management checks.
  • Blind cord safety.
  • Outside lighting safety (adequate lighting).
  • Steps and balcony safety.
  • Flooring safety, etc.

Risk can be a complex issue that every investor wants to avoid. By being proactive you can be safe your property is protected.

Referrals – FREE iPad*

If you refer somebody to us, and they engage us for the management of their property, you will be eligible for our FREE iPad offer!

Contact Tracey Farrell on 0499 273 737 or via email for further details.

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