We recently took a property over for an investor that has just purchased the property. They really didn’t have much information supplied regarding the current tenants in the property. Our advice is that if you are purchasing a property with a current tenant you ask the following questions:
- When does the current lease expire?
- How much rent do the tenants pay?
- What is the tenants paid to date? Do they pay rent in advance?
- Do the current tenants look after the property?
- Do the current tenants pay for water usage? Is there a water efficiency certificate for this property?
- Is there an Entry Condition Report for the current tenants?
- Is there a full bond for the current tenants held by the Residential Tenancies Authority?
- Who will complete the adjustment at settlement?
- Is there an application form for the current tenants with identification available?
- Is there a current smoke alarm compliancy for the property?
- Will all of the above documents be available to my new managing agent upon settlement?
If the seling agent is not the same agent as the managing agent advise the selling agent that you want these questions answered and they should be able to obtain this information for you.
I hope this helps with some direction of what you need to know prior to signing a contract.