Considering selling a tenanted investment property?

If you have tenants in an investment property when you decide to sell, it may seem like there are hurdles in front of you. However, having a good sale agent and property manager who are all working together with the tenant can often create a great outcome throughout the sale.

Communication with the tenants is key

While there are requirements in some states around sales inspections through rental properties and for entry on notice periods, if there is open communication with the tenants from the commencement of the campaign, this can create a great footing for the sale.

A good sales agent and property manager will call the tenant prior to listing the property for sale to discuss the requirements and work with them on the best times for entry, keeping in mind that they may be nervous about the prospect of people coming through their home and the potential for needing to move, if the property is sold to an owner occupier.

Help with presentation

Everyone’s level of cleaning and presentation is different and sometimes property owners will focus on how a property should be presented to show it in the best light.  This is valuable, as presenting the property in the best light can have a positive impact on potential buyers, however it may be difficult to achieve optimal presentation when a property is tenanted.

If there is a particular way that a property may need to be maintained, or it might need a little bit of extra care, it can be helpful to offer the services of professional cleaners and gardeners throughout the sale.

This will ensure that the property is presented well both inside and out and can make the experience less stressful for the owner, tenant, and property agents.

Incentivise the tenants when selling

The Owner, Tenant and Agent relationship can often be a tricky one to navigate and there can be a considerable amount of emotion that is involved, especially when it comes to the security of a home.

Providing an amount of rental compensation as a thank you for the inconvenience throughout the sale campaign can sometimes assist in transitioning the tenant through the process.

If the tenant is locked into a fixed-term lease agreement, you may also like to offer a penalty-free lease break option should they wish to move on and find another property, which would lead to a vacant property when it comes to the sale.

While this would mean a loss of rental income, it would allow an opportunity to make small improvements to the property prior to sale which may contribute to a higher sale price.

For the best options to suit your property, it is beneficial to talk with your sales agent and property manager and work out which avenue may be the best for you, the property, and the tenants.

Thinking about a renovation to your investment property?