How to Buy a Property With a Tenant Already In It
Buying a tenanted property is common in Brisbane's inner east, particularly for investors. But the rules around tenant rights, open home access, and what you can do after settlement are strict in Queensland. Knowing them upfront saves a lot of friction.
The law that governs it
Queensland tenancies are governed by the Residential Tenancies and Rooming Accommodation Act 2008 (Qld). This legislation protects tenants regardless of whether the property changes hands. A sale does not override or cancel a tenancy agreement.
Fixed-term vs periodic tenancy
The type of lease in place determines your options as the new owner.
Fixed-Term Lease
The tenant has the right to remain until the lease end date regardless of the sale. You cannot issue a notice to leave during a fixed term simply because you want to move in. The lease carries over to you as the new owner.
Periodic (Month-to-Month)
More flexibility. As the new owner, you can issue a notice to leave for certain grounds once settlement is complete. The notice periods differ depending on your reason for ending the tenancy.
Notice periods for ending a periodic tenancy
Under the RTRA Act 2008 (as amended by the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024), the following minimum notice periods apply:
| Reason | Notice Required |
|---|---|
| Owner or owner's relative wants to move in | 2 months |
| Significant renovation or repair (property must be vacant) | 2 months |
| Property to be demolished | 2 months |
| Property has been sold (new owner wants vacant possession) | 2 months |
| End of fixed term (not renewing) | 2 months (if owner gives notice) |
Important: Minimum notice periods are from the date the tenant receives the notice, not the date you buy the property. The 2-month clock starts on the day of service. Always serve notice in writing using Form 12 (Notice to Leave) available from the RTA.
Accessing the property during the sale campaign
During the marketing campaign, the vendor's agent must give the tenant at least 24 hours written notice before each open home or inspection. The tenant cannot unreasonably refuse entry, but they do have the right to be present.
Open homes can only be held at reasonable times. The number and frequency of inspections should not unreasonably interfere with the tenant's right to quiet enjoyment. If the tenant is being uncooperative, this is a legal matter best handled by the property manager, not the agent or buyer.
What happens at settlement?
At settlement, the following transfer automatically from the vendor to you:
Your solicitor will arrange for rent to be adjusted at settlement. Any rent already paid by the tenant beyond the settlement date is credited to you.
Bond lodgement and RTA notification
After settlement, you must notify the Residential Tenancies Authority (RTA) that you are the new owner and have the bond transferred to your name as lessor. Do not leave this undone. The bond belongs to the tenant and must be lodged with the RTA. Retaining it without authority is a serious breach.
The RTA can be contacted at rta.qld.gov.au or 1300 366 311.
Key due diligence questions to ask before you buy
Is the lease fixed-term or periodic?
A fixed term with 12 months remaining locks you in, which may suit investors but blocks owner-occupiers.
What is the current rent?
Is it at market? Below-market rent inherited at settlement. You can only increase rent to market after proper notice once you own it.
How long has the tenant been there?
Long-term tenants have more protections and can be harder to transition.
Is there a property management agreement?
Who is managing it and at what fee? You inherit this too unless you terminate.
Are there outstanding maintenance issues?
These become your responsibility at settlement.
Is rent being paid on time?
Request a rent ledger. Arrears are not your problem to collect before settlement but they signal the tenant.
Buying an investment property in Brisbane?
Daniel Gierach works with investors across the inner east and can help you assess a tenanted property's risk profile before you commit. Book a conversation.
Sources: Residential Tenancies and Rooming Accommodation Act 2008 (Qld); Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 (Qld); rta.qld.gov.au. This article is general information only and does not constitute legal advice.