Dee Why / Collaroy Blog

It’s horses for courses whether you sell your investment property with, or without a tenant.

Landlords can sell their properties with a renter in place, even if a fixed term tenancy agreement exists. However, be mindful that the property is your tenant’s home, so where possible, try and include them in the sales process.

The thing is that many tenants have been in this situation before. Moreover, an unhappy tenant can make the sale of your investment property challenging for you and your Raine & Horne agent, potentially hindering the sale process and worse, affecting the final price.

Put yourself in the shoes of your tenant. They are facing the anxiety of potentially having to find a new home, as well as the expense. They will have to fork out for removal fees, cleaning, and the costs of connecting electricity and the Internet, as well as a new bond. Therefore, any measures that you put in place to support your tenants will often be paid back in spades in the guise of a more seamless, and ultimately more profitable sale.

Clear lines of communication

Start by giving tenants plenty of notice before open for inspections. Most tenants will appreciate knowing the scheduled times for an open house well in advance, so they can plan and clean.

That said, keeping the property in shipshape condition for every inspection can be a drag for tenants. Consequently, it might pay in the long run to offer them some incentives such as rental discount through the sale period, free week’s rent when the property sells, and they have met some minimum guidelines about the presentation of the property at inspections or a letter of recommendation to their next property manager and landlord.

A vacant sale

If you can postpone a sale until the tenant leaves, you could potentially increase the market for your property. Typically, most buyers are owner-occupiers. Therefore, if there is a lease in place, those buyers seeking a place to live, may look elsewhere.

On the flipside, a longer-term tenancy agreement with an established renter might appeal to investors and self-managed super funds.

That said, empty properties seem smaller to buyers, and as an investor, you’ll take a financial hit in the loss of a weekly rent. Professional staging can be used to present a vacant property in its best light, and make it appear larger to prospective buyers.

You can discuss the benefits and costs of selling an investment property with, or without a tenant with your Raine & Horne Dee Why Collaroy property manager by calling (02) 9971 9000 to discuss your options or to set up an appraisal with a sales agent.