If you have just been notified that your landlord is selling the home you are renting, there are a number of things you need to know. Let’s address the most common question first.
Will I have to move out?
As the owner of the property, your landlord has the right to sell the property whenever they wish. However, there is no need to start packing just yet… The landlord must still abide by the lease signed with you and no matter who purchases the property, you still hold the right to live there until the end of your lease (unless your lease says otherwise). If the new property owner wants you to move out, they will have to abide by your existing tenancy agreement.
What are my options?
Now is the time to pull out your lease and look for anything that talks about what happens if your landlord decides to sell the property. There may be a point that allows your landlord to break the lease, but most states around Australia require at least 30 days notice.
Stay - most investment properties are sold to other investors so it’s likely that the new property owner will continue to lease the property. Ask the agent what type of buyers they are targeting and who has come through. Lease term, rent for the year ahead and any repair requests. The more the agent knows, the better they can communicate your desired outcomes to the buyer.
Leave - In NSW - If you are in a periodic agreement, there is no special termination notice, and you are able to serve a 21 day notice. If you are in a fixed agreement, you may give a 14-day termination notice if there was no disclosure of the proposed sale before entering into the agreement, and the landlord has now told you of their intention to sell. These options will depend on the regulations in your state and it is important to familiarise with these to understand your options.
How do sales inspections work?
Inspections can naturally be a disruption to you as a renter if there are potential buyers coming in and out of the house each week - so what are the rules?
Property condition: As a renter, must keep the premises ‘in a reasonable state of cleanliness’ during your tenancy. You are not required to go to any special effort.
Inspection frequency: Your landlord is permitted to show the property with ample notice - however, they are required to keep weekly showings to a reasonable amount.
Get ready: The ultimate guide to preparing for rental inspections; ingoing, outgoing and routine
Rental references - last minute inspection requests may arise close to the auction. These inspections could occur twice weekly (both mid and weekends), and potentially in the evenings. Additionally, after the sale - valuers and trades may need to enter the property for further inspection. As a renter, you will generally be in the best position to receive a positive rental reference if you are accommodative to the landlord/agent throughout the selling process.
What do I need to know (by state)?
Every Australian state has slightly different laws, and it is important to familiarize yourself with those that apply to you so you can understand your rights and obligations.
New South Wales
- Landlords must provide tenants with two (2) weeks written notice prior to the first inspection, and a minimum of 48 hours notice thereafter, which cannot amount to more than two a week
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the lease terms, or the two parties reach an agreement by mutual consent.
- Landlords must give you 30 days’ notice if they wish to terminate the lease at the end of the tenancy agreement, when the sales contract is signed by the buyer/seller and vacant possession is required.
- If the agreement is periodic, a landlord can evict you, as long as they give you 90 days’ notice, or 14 days’ notice if you breach your tenancy agreement.
Queensland
- Landlords must give renters written notice of their intention to sell the property and provide 24 hours’ notice before any inspection (including the first).
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, landlords can evict tenants on four (4) weeks’ notice, once a contract of sale has been signed.
Victoria
- Landlords must provide tenants with 24 hours’ notice before showing around a prospective buyer.
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, landlords can evict tenants with 60 days’ written notice
Australian Capital Territory
- Landlords must provide tenants a minimum of 24 hours’ notice before showing a prospective buyer around the property. Tenants must grant these buyers “reasonable access to the premise” but can refuse access if they weren’t previously informed of the landlord’s intention to sell.
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, the state’s Residential Tenancies Act states that a landlord can evict you on eight weeks’ notice, if they “genuinely intend to sell the premises”.
Northern Territory
- Landlords must provide tenants 24 hours’ notice before an inspection and are only allowed to enter the property between 7am and 9am and must be “reasonable about the number of showings sought”.
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- Landlords must also give renters 14 days’ notice if they wish to terminate the lease on the end date noted in the tenancy agreement.
- If the agreement is periodic, landlords can evict tenants with 42 days’ notice.
South Australia
- Landlords must provide tenants 14 days’ notice before they advertise the property for sale, and “reasonable notice” before each inspection. They must also specify a time between 8am and 8pm, on any day other than a Sunday or public holiday, and cannot conduct more than two (2) viewings every seven (7) days, unless the tenant gives them permission to do so.
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, landlords can evict tenants on 60 days’ written notice if a contract of sale has been signed; on 90 days’ notice, if a contract hasn’t been signed.
Tasmania
- Landlords can show prospective buyers around the property at any time if they have written consent from the tenant. If not, they may only conduct inspections between 8am and 6pm, no more than once (1) a day, and no more than five (5) times a week. They must also provide 48 hours’ written notice before each inspection.
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, the landlord can evict tenants with 42 days’ written notice.
Western Australia
- Landlords may only conduct inspections between 8am and 6pm on weekdays or between 9am and 5pm on a Saturday, unless the tenant gives them permission to conduct one outside these hours. Before each inspection, landlords must provide “reasonable written notice,”
- Neither the new or old landlord can evict the tenant if a fixed agreement is in place, unless the tenant violates the terms of the lease, or the two parties reach an agreement by mutual consent.
- If the agreement is periodic, and the contract specifically mentions handing over vacant premises, the selling landlord may evict tenants with 30 days’ written notice.