Buying a property with existing tenants can be challenging to home buyers keen to move into their dream home.

However there are options to make life easy for both parties.

The first step is finding what kind of lease is in place.

There are two types of leases – periodic or month by month and fixed term lease agreements where the tenant signs up to a specified time to lease the property with a start and an end date.

When a fixed term tenancy agreement comes to an end, store they sometimes roll over into periodic tenancy agreements where the tenant pays on a monthly basis.

Before they purchase a property, home buyers are entitled to know what type of lease is in place and this information can be found from the real estate agent.

If a fixed term lease agreement is in place, from settlement, the tenant’s rental payments will be paid to the new property owner. Updates to the lease agreement including the new landlord and payment details can be made with the existing property manager, who will also notify the relevant state bond authority.

New owners have the right to change property managers or manage it themselves, but must inform the tenant and update these details on the lease.

*Source www.realestate.com.au

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