Cash flow is king. I speak to property investors in Queensland on a weekly basis looking to sell. Time and again their first concern is protecting their income source whilst they try to find a suitable buyer.
If you find yourself in a similar situation I can provide some reassurance if you have the following:
- A validly executed, fixed term tenancy agreement
- An understanding of Section 307 of the Residential Tenancies and Rooming Accommodation Act 2008 (RTRA Act).
A fixed-term tenancy agreement is binding on both parties to the agreement, lessor and lessee.
Section 307 of the RTRA Act prescribes the circumstances that allow a tenant to give 2 weeks notice to vacate if a premises is being sold. Let’s take a look.
By complying with the RTRA Act, a lessor can ensure the tenant has no valid option to end the lease agreement earlier. Just follow the instruction in Section 307 (2)
If advertising the property for sale or entering the premises to show the property to a prospective buyer, provide the tenant with written notice of the lessor’s intention to sell the premises before entering into a general tenant agreement.
Remember under a periodic tenancy agreement a tenant can give 2 weeks notice to vacate. If regular rental income is critical, it may be prudent to ensure tenants are kept on fixed term tenancy agreements.