What to do when your Rental goes up for Sale
During any part of your tenancy your landlord has the right to sell their property, regardless of the length of your tenancy agreement.
During any part of your tenancy your landlord has the right to sell their property, regardless of the length of your tenancy agreement. However, just because your landlord is putting the property on the market, it doesn’t mean you’ll be forced to find a new home. In this situation, it is crucial that you understand your rights as a tenant, so you can be well prepared.
Depending on the terms of your lease agreement, you may or may not be affected by the sale of the property. For instance, if you are in a fixed term lease agreement, then your lease is not affected by the sale. If the property is sold during your fixed term lease, the new owner takes over the rights and responsibilities of your previous landlord. The existing terms and conditions of your tenancy still apply, which includes the amount of rent you pay and the expiry date of the fixed term.
Marshall White property manager Annelise Robinson points out that the outcome varies depending on the situation.
‘If the property is sold to an investor, the lease will not be jeopardised. However, if the property is sold with vacant possession, the purchaser will be moving in. Therefore, the tenant will be served with a notice to vacate. This notice is 60 days plus postage if you are on a periodic agreement,’ says Annelise.
… just because your landlord is putting the property on the market, it doesn’t mean you’ll be forced to find a new home.
Your landlord is within their rights to advertise the property to prospective buyers. The law stipulates that they must provide you with a minimum 24 hours written notice if they will be showing potential buyers through your home. The landlord must arrange all viewing appointments within reasonable working hours and limit the number of showings to minimise inconvenience to you during the selling process. As the tenant, you are obliged to maintain the property in a reasonable condition, although you are not required to make any special effort to prepare the property for inspections.
If your landlord has notified you that the property will be going up for sale, we advise that you meet with your property manager, sales agent or landlord to discuss the situation.
‘Great communication between property management, sales teams and tenants in residence is key to ensure the tenant feels comfortable and is not inconvenienced more than they need to be,’ says Annelise.