Want to know how to handle tenants while selling your investment property? Selling successfully with tenants in your property really depends on the their attitude, cleanliness and perhaps even their style. We’ve put together a list below to help you gain cooperation from your tenants if you plan to sell.
If you would like the tenant to vacate the property so you can run a selling campaign with an empty property, it’s important to note that you’re obliged to give the tenant 60 days notice to vacate. If you’re in a sellers or ‘hot’ market, you’re at risk of losing out on thousands of dollars by pushing the campaign forward by two months. You’re also losing two months of rental income.
Legally, there’s nothing stopping you from running a selling campaign and holding open for inspections whilst your property is tenanted. If you’ve got great tenants, they’ll cooperate to ensure the entire selling process runs smoothly. Tenanted property is attractive to potential investors. They won’t need to find new tenants if they purchase your property.
If you’re unsure of whether to sell with or without tenants, talking to a local real estate agent is the best place to start. They’ll be able to tell you if now is the right time to sell, and whether your property will present better with or without your current tenants’ personal items. You can compare real estate agents at LocalAgentFinder.com.au, including marketing strategy, commissions, sales history and independent homeowner reviews.
Selling with tenants
Here’s how to handle your tenants while selling:
1. Talk to your tenants in person
If you’re going to sell your property with tenants, you should notify them as soon as possible both in person and in writing. This way, you’re being open and honest about all aspects of the move. Your tenants get the chance to ask questions and negotiate. Having a good relationship with your tenants mean they’ll likely respond to your requests and respect your needs throughout the selling process.
2. Organise a cleaner and gardener
Rather than asking your tenants to clean and tidy up the garden, it’s recommended that you book a cleaner and a gardener in yourself, assuming your tenants are happy to let them in. This way, your tenants don’t need to worry about doing it themselves. If you have great tenants, they’ll probably help you pretty up the place anyway.
3. Be flexible with the lease agreement and timing
If you have a fixed term agreement, you can end the lease early provided there is mutual agreement between you and the tenant. This gives the tenant the opportunity to find a new place to live sooner rather than later if they need to.
4. Notify tenants of any upcoming inspections
Legally, provided 24 hours is given in advance, tenants must allow agents to show prospective buyers through your property. It’s a good idea to give tenants much more notice so they can make plan their inspection days accordingly. It’s common that tenants will leave the property during open for inspections, however there’s nothing to say that they must leave.
5. Offer incentives if required
It’s in your best interest to remain on good terms with your landlords given they small window of time you have to sell your property. If y0u have tenants that aren’t happy with the fact they have to vacate, you can offer incentives in an attempt to gain their cooperation and reward good behaviour. This may include:
- Rent reduction
- Paying for professional cleaning (generally paid by the tenant at the end of a lease)
Another strategy is offering the tenant the opportunity to purchase the property before it goes to market.
If you’re looking for assistance in handling tenants while selling, the best place to start is finding the right agent. You can compare real estate agents at LocalAgentFinder.com.au, including marketing strategy, commission rates, sales history, independent homeowner reviews and more.