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  1. #1
    Join Date
    Jul 2010
    Location
    Auckland City, why invest else where?
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    984

    Default How to take over existing tenants on a new property purchase

    Hi everyone

    Recently I have purchased a 3 bedroom place with existing tenants.

    The tenants are nice, paying up to date (according to the owner/agent), and I would like to keep them for now on a periodic tenancy, with a view to ask them to leave in January when I can do the reno and re-let.

    So how do I go about it? I will approach the tenants, talk to them, getting to know them, letting them know me a little, and basically see if they want to stay (agent said they do), and write up new tenancy agreements.

    So when comes to the bonds, do I ask for new bonds? i'm thinking of 2 weeks bond, but the tenant would already paid bonds to the existing owner, so maybe it would be a difficult demand?

    What are your views? How do I deal with the bond issue?

    Thanks

    Gary

  2. #2
    Join Date
    Feb 2004
    Location
    Wellington
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    2,831

    Default

    I'd make sure you get vacant possession in the S&P .... you can then sign the tenants up on a new tenancy agreement.

    The tenants don't actually have to move out.......they do have to pay you a bond..... not your problem if they have troubles getting their bond back from the vendor

    Taking over existing tenancies is far more trouble than it's worth IMHO..... although it might be too late for you to do anything much now as you say you've already bought the place.

    Cheers
    Spaceman
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  3. #3
    Join Date
    Jun 2005
    Location
    auckland New Zealand
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    5,236

    Default

    Yep definitely get vacant possession then offer to resign the tenants on your terms. If too late to do that then you could give them 90 days notice, depending on their current lease, and advise them they can go on periodic till January. If you have bought it tenanted then your solicitor could ensure the bond gets transferred to you as part of the settlement.

  4. #4
    Join Date
    Nov 2006
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    Default

    Quote Originally Posted by NovInvestor View Post
    The tenants are nice, paying up to date (according to the owner/agent)
    Tenants are always nice and up to date.
    Quote Originally Posted by NovInvestor View Post
    ... and write up new tenancy agreements.
    This you cannot do unless you have vacant possession.
    Quote Originally Posted by NovInvestor View Post
    So when comes to the bonds, do I ask for new bonds? i'm thinking of 2 weeks bond, but the tenant would already paid bonds to the existing owner, so maybe it would be a difficult demand?
    Four weeks bond is good for the soul. The existing bond should have been deposited with the Department of Building and Housing. Unless you're lucky enough to have a new agreement signed, you can't increase the bond and have to live with what has been paid. There's bond transfer form to fill out which the vendor's landlord needs to sign.

  5. #5
    Join Date
    Jul 2010
    Location
    Auckland City, why invest else where?
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    Default

    Yes I have vacant possession, and I will negotiate for new agreement and new bonds.

    The tenant can sort out their bond with the previous owner. Their fixed contract expires in 8 July.

    Thanks for all your inputs guys!
    Last edited by NovInvestor; 14-06-2011 at 10:02 AM.

  6. #6
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    Nov 2006
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    Default

    Quote Originally Posted by NovInvestor View Post
    Yes I have vacant possession, and I will negotiate for new agreement and new bonds.

    The tenant can sort out their bond with the previous owner. Their fixed contract expires in 8 July.

    Thanks for all your inputs guys!
    Interesting. When is possession? Read this thread.

  7. #7
    Join Date
    Jul 2010
    Location
    Auckland City, why invest else where?
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    Default

    Yes indeed it will be interesting.

    Settlement & possession of this property is 22nd July 2011.

    Tenant's fix contract expires in 8 July according to the agent - this has yet to be validated myself.

  8. #8

    Default

    I suggest you check with the tenants (and vendor) that there is an arrangement for the tenants to continue under a periodic tenancy until settlement date.

    You should arrange with the tenants, in advance, for a new tenancy agreement, including the 4 weeks bond already suggested. Also, do an 'incoming' inspection of the property, photographing and recording all issues (even the minor ones), so that you both have a record of any damage, etc.

    It's also a good idea to get the locks changed (I just change the barrels) as this gives the tenants more peace of mind, knowing their old landlord doesn't still have access to the property.

    When you want to renovate, remember you'll need to give 90 days notice for the tenants to vacate.

    Good luck, and have fun!

  9. #9
    Join Date
    Jul 2010
    Location
    Auckland City, why invest else where?
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    Default

    Thanks Holly's Mum.

    That's exactly what I plan to do.


 

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