Selling your investment property while tenanted
Deciding to sell your investment property is a big step on your investor journey and one that may help to free up the necessary funds to move on to your next venture.
When you do choose to sell, there may be tenants still occupying the property and you will need to make the decision to either maintain the tenants throughout the sales campaign, with the view to sell to an investor or provide them with the required notice so that you can sell the property vacant.
There are advantages and disadvantages of either method of selling, one advantage being that you will continue to maintain an income from the property until the date of settlement.
One of the disadvantages is that continuing the tenancy may make it more difficult to sell the property.
Understand the legislation
Your property manager and a sales agent will advise you that while you are within your rights to sell the property if there is a tenancy in place there are certain rules and legislative guidelines that you must adhere to throughout the sale.
If your tenants are on a fixed-term lease agreement, the conditions and terms of the lease are set until the lease expires. While tenants on a periodic agreement can be provided with the required notice should you wish to sell the property while vacant.
Your property manager and sales agent are required to notify the tenants that the property will be listed for sale and come to a mutually agreed arrangement for open homes and private inspections.
You may also offer the tenant the opportunity to break their lease without penalty if you feel that they wish to find another property and you would prefer to sell the property vacant.
Repairs and maintenance through the sale
If there are repair and maintenance items that are needed at the property it would be beneficial to attend to these prior to listing the property. This also goes for minor improvements that may be needed.
If the lawns and gardens need landscaping, it may be beneficial to arrange a gardener to maintain these areas before and during the sale campaign rather than placing this expectation on the tenant. The same applies for cleaning and you may like to arrange a professional cleaner regularly, in cooperation with the tenant.
Communicate with all parties
The key to a successful sale is communication with everyone that is involved. A great sales agent and the property manager will communicate your needs and expectations and those of the tenants throughout the sale.
They will help to prepare you and the tenant on what to expect before, during and after a sales campaign so that you can comply with the relevant legislation and requirements and achieve a great result.
Our agents are well qualified in all aspects of the sale, chat with them today about any questions that you have on selling your investment property.