Respecting Tenants When You’re Selling
Selling with tenants can be an opportunistic time; investors will automatically be attracted to assets which are tenanted, especially on a long-term tenancy.
But when you are selling with tenants, your sales agent will need to do more than simply hang out a For Sale sign, advertise the property and co-ordinate home inspections.
The selling process can be intrusive for tenants, whom also have their rights detailed within the tenancy agreement. But if you are selling through the same agency which manages your property investment, the process can run smoothly for all.
In the first instance, it is a good idea to give your tenant a chance to buy the property. The tenant is likely to have developed a close relationship with the property and, if they buy, it will save you on advertising costs. Even if they are not in a position to buy, they will appreciate the offer.
Landlords, and their real estate agents, have the right to show possible buyers through the house. They can also show through a registered valuer or a building expert they have employed to prepare a report. But the tenant must give permission first. Tenants can not unreasonably refuse access, but they can set reasonable conditions.
Tenants must also accept that photos of the exterior and interior of the property will be displayed in advertisements, and that they must present the home in a reasonable condition for the desired marketing material. The tenant can refuse to allow the landlord (or their real estate agent) to take and use photographs of their personal possessions.
It is a fact that the new owners are within their rights to amend all conditions and even remove the tenants and replace with someone else once the previous tenancy expires.
But that being said, tenants generally will not attempt to jeopardies a sale. Indeed, their conduct and presentation of the property allows them a great opportunity to prove themselves as reliable tenants, positioning themselves in a positive light for the next lease renewal.
But on certain occasions, it may be best to sell your investment without tenants living there.
For instance, some tenants could have basic furniture which, when compared against a stylised property, may devalue the home.
Additionally, selling your property with tenants could deter owner-occupants who want a property to move in to straight away.
The amount of notice required to sell your property as vacant possession is 90 days written notice. to end a periodic tenancy. If you terminate a tenancy under for the reason to sell the property, the property cannot be put on the market until the tenancy has ended. However, during this time you can make arrangements to prepare property for sale, such as getting an appraisal and taking photos, if the tenant gives permission, of course. Once the tenancy has ended, you have to list your property within 90 days.
There are pros and cons of both selling with and without tenants. Every property is different and so is every tenant; your best guide is to talk to your LJ Hooker property manager and a sales agent from their office on the best way to approach your sale in your neighbourhood.Share