Buying With a Tenant in Place Can Be a Smart Move — If You Check the Right Things

Buying a property with a tenant already in place can offer immediate income and reduced vacancy risk. For many buyers across New South Wales, it’s an appealing way to step into the market with momentum from day one.

Like most smart property decisions, success comes down to calm checks and clear paperwork.

Here’s what to review before you commit.

The Lease Comes With the Property

At settlement, the lease transfers to you.

That means you inherit:

• The rent amount

• The lease end date

• All existing terms and conditions

Always request a copy of the signed lease, the entry condition report, and a full rent ledger.

Confirm the Bond Details

Make sure the bond:

• Is lodged correctly

• Matches the lease

• Will be transferred into your name

Any discrepancies should be resolved before settlement.

Check the Rent Ledger Carefully

A clean ledger usually signals a well-managed tenancy.

Look for:

• Missed payments

• Arrears

• Payment plans

If there are issues, they’re not deal-breakers but they should be priced into the purchase.

Review Maintenance and Compliance

Ask for maintenance history and compliance records, including:

• Smoke alarms

• Safety checks

• Warranties and recent repairs

Regular small fixes often indicate proactive management and fewer surprises later.

Understand Access and Tenant Rights

Tenants have a right to quiet enjoyment.

That means:

• Inspections require proper notice

• Access rules must be followed

A respectful approach keeps tenancies stable and stress low.

Look Closely at Rent and Timing

Check:

• When the rent was last increased

• What the lease allows moving forward

• How market rent compares

This helps you forecast income realistically.

If It’s Strata, Read the Records

Strata properties add another layer.

Review:

• By-laws

• Levies and fees

• Planned works

• Insurance and sinking fund health

Well-funded strata schemes matter more than many buyers realise.

Ask for a Proper Handover

A good handover makes all the difference.

This should include:

• Keys and access details

• Trades and contacts

• Manuals and warranties

A warm introduction between parties sets the tone for a smooth transition.

Update Insurance From Day One

Ensure landlord and building insurance are active at settlement, with all details updated correctly.

The Bottom Line

Most tenanted purchases are straightforward when:

• The paperwork is clear

• The risks are understood

• The plan stays calm

If you’d like a quick review of a property, lease, or tenancy before you move forward, I’m happy to help. A second set of eyes now can save time, stress, and surprises later.