What happens if the owner of your rental property decides to sell?

Renting a home comes with a level of stability, but what happens if your property owner decides to sell? Many tenants worry about how this will affect their lease and whether they’ll need to move. Here’s what you need to know if your rental property goes on the market.

Your lease remains in place

If you’re on a fixed-term lease, the sale of the property doesn’t automatically mean you have to move out. The lease agreement remains valid, and the new owner will take over the responsibilities of the property owner. In some cases, if the buyer is an investor, they may choose to keep you on as a tenant with minimal changes to your living situation.

If you’d prefer to move, you may be able to negotiate an early end to the lease by mutual agreement with the property owner. This could involve compensation or an arrangement that works for both parties.

Access for inspections

Once a property is listed for sale, inspections are usually required, but tenants have rights around how these are conducted. Property owners must provide adequate notice before the first inspection and continue to give notice for any future viewings.

As a tenant, you have the right to be present during inspections, and landlords should work with you to agree on suitable times. In most cases, tenants are also expected to keep the property in a reasonable state for viewings.

Rules around photos and signage

Marketing a property for sale often involves taking photos and placing signage, but tenants still have a say in how this happens. External photos of the home can be taken without permission, but interior photos generally require tenant approval.

If you’re concerned about privacy, you can discuss your preferences with the property manager or property owner. In some cases, tenants can also refuse signage or auction-related materials being placed on the property.

Compensation for tenants

Selling a rental property can be disruptive for tenants, and in some cases, property owners may offer compensation. This could be a set amount per inspection or other financial arrangements to acknowledge the inconvenience.

Depending on the location, some tenants may also have the right to end their lease once the property is listed for sale, even if they are on a fixed-term agreement.

Staying informed and supported

If your rental home is being sold, knowing your rights and options can help you navigate the situation with confidence. Every tenancy is different, and every state in Australia has their own laws, so having expert advice can make all the difference in ensuring a smooth transition, whether you’re staying or moving.

If you’re considering a new rental or looking to buy, I can help you find the right home to suit your needs. Get in touch today to explore your options and make your next move with confidence.