What do you do if you want to sell your investment property – especially if you have a tenant living there? Here are our 4 key tips to help you and the tenant through a potentially rocky period.
Tip 1: Plan it carefully
Selling any property should never be a spontaneous decision. It’s particularly true when you have a tenant. Remember, it’s their home. They are entitled to privacy. They also have the right to feel safe and secure.
We believe open communication and understanding are critical when you first advise a tenant that the property is being sold. That’s one of the reasons we have strong, positive relationships with all our tenants.
Tip 2: Choose your sales agent carefully
If you want your tenant to keep your property looking good for every open, the selling agent must treat them well and follow legislative requirements. Otherwise, as the landlord, you could find yourself in trouble.
When one of our landlords decides to sell their investment property, we remain very involved in the process. We’ll often recommend they use sales agents we know will collaborate with us, and who will look after the best interests of both our landlord and the tenants.
Tip 3: Stay or Go – The tenant has rights
Once a tenant has been advised of an upcoming sale, they can choose to cancel their lease as long as they follow their legal requirements. This means you’ll be losing rental income much sooner than you expected.
We recommend you try to ease the pain and inconvenience of opens by offering your tenant a generous rent reduction during the sales period. It means you may have a reduced rental income but at least you still have incoming rent to help offset your mortgage. Rental reductions also reward your tenants for keeping your property in good condition throughout the sales process.
Tip 4: Follow the tenancy legislation
There are all sorts of regulations regarding a tenant’s rights when selling the property. These include:
- Providing correct notice prior to opens
- Restrictions on promotional photography
- Allowing tenants to terminate the lease if they wish
- Remaining at the property during each open
As your property manager, we’ll ensure the selling agent respects and abides by the tenancy legislation as well as protecting the rights of your tenant.
A successful sale begins with tenant selection
Selling your investment property might seem improbable at the moment, but priorities change. That’s why we offer comprehensive property management services that take into consideration all aspects of leasing – from finding a great tenant to navigating the challenges when you decide to sell. After all, we’ve been managing Sydney properties for over 30 years.