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.
Just a thought....
If a tenant is being difficult with inspection times, you may want to consider offering an incentive, such as a reward $$value if the property is sold within a short period of time say in the first 30 days, and perhaps in addition an offer to pay for removalists up to a value. This may motivate the tenant to take extra care in the presentation of the property, internally and externally, they will be likely to allow more frequent inspections and be much more flexible with times.
As you can imagine, being a tenant in an investment property that is on the market for sale can be unsettling and highly inconvenient so if you offer something in return you will get a much more positive response. You will be surprised at how much value can be added to the property simply with the way in which the tenant is presenting it. The negotiation may cost you $2000 however could add $5000 or more to the value.
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 Notice Periods
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.