Selling a Tenanted Property
If you are looking to sell your investment property, it is important to communicate with the tenants as they can often feel like their privacy and quiet enjoyment has been invaded. If you get a tenant off side, it can cause unnecessary challenges and inhibit your ability to sell the property quickly and for the best possible price. For this reason, it is important that your managing agent is always the first to be notified of your intention to sell.
The managing agent will have a relationship with the tenant and be able to negotiate inspections and open houses on your behalf. Just a thought! - If a tenant is being difficult with inspection times, you may want to consider offering the tenant an incentive, such as a reward $$value if the property is sold within a period of time. This may motivate the tenant to take extra care in the presentation of the property and allow more frequent inspections, as there will be a monetary reward for the tenant. Being a tenant in an investment property that is on the market for sale can be unsettling, as you can imagine. We like to think that we take the time to care for the needs of our clients and customers, as without both we have no business!
There are also a few important things to know about tenancy legislation when selling a tenanted property.
1. The Lease is transferable to the new owner. Meaning the tenant has the right to stay in the property until the expiry of the lease regardless of the sale, unless the tenant and the owner both agree to terminate the agreement early.
2. The agent/owner is required to give 48 hours notice for all prospective buyer inspections
3. Even if the tenant’s agreement has expired, you are still required to give notice in accordance with legislation requirements.
4. Inspection Requirements: Accompanied inspection can occur at any time with the agreement of the tenant. If an agreement cannot be reached, inspection by prospective purchasers may only occur:
(a) In the company of the owner/agent
(b) Between the hours of 8am-6pm
(c) With 48 hours written notice
(d) On not more than 5 occasions per week
(e) On not more than 1 occasion per day
5. The tenant has a right to decline "Open Homes" It is well known that open homes have risks, one of those risks are that the contents of the home are not insured while an open home is conducted, therefore the tenant has the right to decline this type of inspection.
If you are thinking about selling your investment property, contact our office today for professional advice, we will gladly give you some helpful tips.