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How to buy the property you rent

Love the property you rent and dream of calling it your own? Sometimes it simply makes sense to purchase a property you know well in a suburb where you have an established network, but how do you initiate the conversation with the owner?

Here’s some advice on what to consider if you hope to buy the property you currently rent…

Why it might make sense

There’s lots of positives to purchasing the home you rent. For one, you know the property and its quirks and perks.

Chances are, you also have an established network in that area, including school communities, sports clubs and even professional services such as a doctor you trust, a hairdresser you like, and a dentist you regularly see.

That’s why it’s more common than many people realise for renters to have an interest in purchasing the property they currently rent, particularly if it ticks all the boxes of size, features, amenities etc.

But it’s also a move you shouldn’t enter into lightly, so here’s what to consider and how to initiate the conversation.

Ducks in a row

Before you inquire about purchasing the property, it pays to have your financial ducks in a row and to also have an idea of exactly what the home might be worth.

This includes:

  • Studying the local market to understand the price that similar properties fetch.
  • Attending open homes to gauge the level of competition for similar properties.
  • Speaking with your preferred lender to determine our budget and whether purchasing is feasible.

At this stage also critically analyse whether this is indeed the right move for you.

Consider what would happen if the owner says no, or if the price proves too high. Also is this really the right property for you, or does it just feel easier to purchase a property that you know when maybe there’s something even more suitable on the open market?

Initiating the conversation

If the ducks all line up and you remain keen to purchase your rental, initiating the conversation begins by contacting your property manager.

Ask them politely to raise the prospect of purchasing the residence with the owner. If the owner expresses an interest, things then become more formal.

Chances are, you will then need to put your proposal in writing, including any proposed terms or conditions of the sale.

At this stage, the owner may appoint an agent to handle the negotiations, and attain an appraisal of the property’s worth.

You should also have an independent valuation undertaken, which will assist you when it comes to making a formal offer on the property.

The next stage is similar to any property sale and involves negotiating the right price and conditions for the property.

As part of those conditions don’t forget things like pest and building. Although you live in the property, there could be things about it that aren’t obvious, so ensure you include pest and building as one of the conditions in the contract of sale.

How we can help

Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.

We manage every property as if it were our own and you can learn more about our property management services here.

Alternatively, if you are looking to rent a property, you can view the properties we currently have available here.