What happens if the owner decides to sell my rental?
It’s the news few rental occupiers hope to hear – the property you rent is going to be sold.
So, what happens if the owner decides to sell your rental? What rights do you have and what are you expected to do?
The rental agreement
It’s natural to feel a sense of trepidation at the news the owner intends to sell your rental property, but the reality is the rental agreement still stands regardless of whether the property is sold.
That means, if you’ve signed a fixed term agreement, that will continue to the end of its term. The new owner simply takes on this agreement.
If you are on a periodic agreement and the new owner decides they don’t wish to renew it, they must provide you with sufficient notice that you will be required to leave.
Notice of intention to sell
Under law, the owner must advise the renter of their intention to sell in writing via a standard form that should also include information on how the property will be marketed.
In some states and territories, such as Queensland, if the owner decides to sell the property within the first two months of a rental agreement commencing and they didn’t advise the occupier before that agreement commenced, the renter has the right to end that agreement if they wish.
Open homes and marketing
When it comes to entering the property to take advertising photographs or conduct open homes, notice must be provided to the rental occupier.
If the sales agency is different to the one which handles your property management, the selling agent must let the property manager know of the intended time and date of open homes, and your property manager will then provide the required notice.
This notice period tends to differ depending on what state or territory you’re in, so it’s worth checking the relevant local rental law.
For example, in Queensland, the entry notice to show the property to a prospective buyer must be provided at least 24 hours prior, while in NSW, there should be two weeks’ notice before the first open home and at least 48 hours for any subsequent showings.
Depending on what state or territory you are in, there might also be a limit to the number of showings that can be done in a week, and a reasonable period between open homes.
Can I get a rent decrease?
Living in a property that’s currently for sale can feel like a bit of an intrusion, and you are within your rights to request a rent reduction during the sales period should you wish. However, there is no requirement that the property owner has to agree.
The final word
If the owner decides to sell the rental property that you live in, it’s all about good communication. As the resident, you should still expect to have quiet enjoyment of the property.
You should also be given insight into what’s expected to occur and sufficient notice for any required open homes or access.
How we can help
Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.
We manage every property as if it were our own and you can learn more about our property management services here.
Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.