Buying an already tenanted investment property sounds like an ideal situation, and in many cases it is.

Some of the pros include:

• Save time with finding tenants
• Save costs associated with finding tenants
• An income right from the start

However, you do need to be aware of some of the possible downsides as well as the upsides of buying a tenanted property.

Here are some of the cons to buying a tenanted property:

• Difficult and demanding tenants
• Unfavourable lease agreements
• Tenants paying rent below the market value
• Inheriting the previous landlord responsibilities

To avoid some of the above scenarios, it is imperative to ask the right questions so you know exactly what the situation is and whether to proceed with the sale.

We suggest asking the agent or owner questions such as how long the tenant has been in the property and what sort of payment record they have – are they forever moaning? Ask to see the lease, so you can see the terms and if there are any additional agreements or concessions.

It’s always worth checking to see if the bond has been lodged properly, how often property inspections have been carried out and when the last smoke alarm checks were carried out.

If you do decide to go ahead and buy the tenanted investment property, remember you can always change agents if you are not happy with the way in which the property is managed.

We’re always looking at ways in which to help you get the best out of your property investment and help you realise your property investment dreams.

If you are looking for a property management agent or just want to know how property management and investment works for future reference, our knowledgeable and experienced team would love to help. With over 40 years of business in the area, we are one of Newcastle’s longest established real estate offices, so give us a call on 02 49569777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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