Find a tenant before settlement
For context lets assume settlement is in 2 months time. That's the day you officially take ownership of the property which also means your mortgage payments start so of course you want a tenant in paying rent asap after settlement.
Your budget should allow 2-4 weeks to find the right tenant (and sign the lease), then a further 2 weeks for them to move in. That's approximately 6 weeks from the moment you advertise the property to the moment tenants move in. So if you've just purchased a property you want to start this process prior to settlement.
You must have approval from the vendor (seller) or their conveyancer in writing before you start advertising the property.
Ideally prior to signing the Contract of Sale (when purchasing the property) ask your conveyancer if the contract allows you to:
- Advertise the property for rent (prior to settlement) and;
- Allow inspections for prospective tenants prior to settlement
By default, the contract will not allow for either of these so you'll need to have your conveyancer write them in and have the other party agree.
If you have already signed, ask your conveyancer to get this approved by the other side regardless.
Getting approval to advertise the property should be easy especially if it's just online advertising, so at a minimum, you should be able to advertise the property and publish the first open home the day after settlement. This will at least reduce some vacancy time.
Allowing inspections for prospective tenants is a lot more difficult because it puts extra risk on their insurance e.g. if something goes wrong. However, it's ideal if you can get them, even just 2 inspections. For example, request 2 x 30-minute inspections about 2 weeks out from settlement. You may also have to fit in with their times and the vendor (or someone of their choice) may wish to be present at the inspection.
In either case, list the open for inspections on your advertising at least 1 week out from the inspection date and make it clear (in the description) that the open inspection is the first inspection on the property, no other inspections prior. This will encourage all potential tenants to make themselves available for the inspection.
Hopefully, this allows you to get the tenant all signed up prior to settlement.
Final tip: Don't sign the lease with the tenant unless you are absolutely sure settlement will go through on settlement day! If you're little unsure contact us.