You’ve finally found, moved and settled into that perfect rental – huzza!
Only to be notified that it will soon be up for sale.
It’s an unfortunate reality that no happy tenant wants to hear; your landlord is selling up the very abode you’ve made a home of. But before you jump on Google and pack your bags, it’s important to know your rights as a tenant.
Regardless of a landlord’s intentions to sell, the existing tenancy is still valid. So when it comes to your own lease agreement, it’s worth knowing the terms to avoid making plans for nothing.
Here’s what to know when the property you’re renting goes up for sale.
1. Don’t panic.
While your landlord can sell at any time, there are laws to protect you from getting the boot without adequate notice should your rental property transfer ownership. (For full details, see Tenants NSW).
If you’re in an unexpired fixed-term lease agreement, your landlord cannot terminate your lease for selling the property. If your lease has expired or is a periodic agreement, your landlord is still required to give a minimum 30-days notice of termination after they have exchanged contract for sale.
Put simply, your rights don’t change because of the sale. New owners must still comply with existing lease agreements, which carry on under the same terms.
2. There’s a chance that nothing will change.
At Prudential Real Estate, our objective is to sell the property to an investor wanting to tenant it without vacancy. So if you’re happy to stay, it’s a win-win situation for both parties. Should your rent payments be up-to-date and the property is in good condition, an investor will be more inclined to buy it – and it’s likely that you’ll experience little to no change despite the new ownership of the property.
3. If you want to leave, you may have grounds to.
Under the 2011 changes to the Residential Tenancies Act, as a tenant you may be able to end your lease agreement early (even a fixed-term agreement), if your landlord:
- Did not disclose the proposed sale before entering into the agreement, and;
- Has now told you of their intention to sell.
In this instance, tenants can give a 14-day termination notice and are not required to pay compensation for ending the agreement early. For full details, see tenants.org.au.
4. Signage, opens and auctions require your consent.
If your landlord wishes to photograph the inside of your rental property, they can only do so with your permission. The same applies for inspections, the day and time of which both you and your landlord must agree on. Prudential Real Estate agents typically only take 5 minutes to conduct an inspection (during which you can be present at the property), and 30 minutes for an open home.
Have a question? Ask away!
For more information about the sale of your rental property, speak to your Prudential Real Estate agent by contacting our office:
(02) 4628 0033 | firstname.lastname@example.org