Yes, a landlord can sell their rental property anytime, if it doesn’t contravene the Residential Tenancies Act (RTA).
The Barossa Valley and surrounding areas are experiencing excellent demand for rental and sales properties, so here we will go over some of the requirements when selling a residential investment property.
There are many critical points to consider when a landlord is intending to sell and one of these is prior to putting a new tenant into a rental property. The RTA is very specific and states a landlord and/or agent must advise a prospective tenant if the property has been or is intending to be advertised for sale and/or if there is an existing sales agency agreement. If this doesn’t happen, then within a 2-month period from the commencement of the tenancy agreement, if the landlord enters into a contract for the sale of the rental property a tenant can terminate the tenancy agreement.
Another point to consider is notification to the tenant of a pending sale. An agent cannot just place a sign in the front of a rental property and commence the marketing. A landlord and/or rental manager must give a tenant 14 days written notice after the landlord enters into a sales agency agreement for the sale of the rental property.
During this 14-day period the rental property cannot be advertised for sale or made available for inspection to any prospective purchaser until the day after the 14 days of written notification of the landlord’s intention to sell the property. Once a contract has been signed and the settlement date is locked in, the landlord and/or agent must notify the tenant, 14 days prior to the settlement date, of the purchaser’s name and date from which the rent is to be paid to them. If the purchaser wants to move into the property after settlement, this is dependent on the type of tenancy agreement already in place.
A fixed term tenancy is exactly that: the term is fixed. If the end of the tenancy is after the settlement date, the tenant has the right to stay in the property to the end of the fixed term (unless there is a mutual agreement by all parties to an earlier termination).
If the tenancy is periodic, this generally means there must be at least 60 days written notice to the tenant before the tenancy agreement can be terminated.
Call Lisa Akeroyd at Barossa Rental Specialists on 0414 335 660 – or drop into our prominent Tanunda office to discuss your rental strategy.