Here's another example a two bedroomed apartment in Woodstock looking for renters (asking rent R4 800) on the 13th of February and then a month later the same apartment is for sale (asking price R880 000), now with a renter in place.I see two options here. Either the seller believes that an existing tenant will help it sell or the seller can not stomach the bond costs and needs a renter to make up the shortfall. If I were looking for an investment property buying an apartment with an existing tenant, especially a long term tenant would be a definite no-no for the following reasons:
- I would not have been the one to have vetted the tenant
- I would not have set the rent, nor any rent escalation clauses in the lease agreement
- I would not have set the length of the lease agreement
So dear readers correct me if I am wrong: Is it better for a property to be sold with or without a tenant?