Selling an investment property with tenants still in it can be tricky, but might also work to your advantage depending on the type of property and its location. Managing the sale process with tenants in place requires careful planning and consideration to ensure a smooth transaction while maintaining positive tenant relationships. Here are some factors to consider if you want to sell a tenanted property.
Open communication with tenants
It’s important to initiate transparent communication with tenants well in advance of listing the property for sale. Notify tenants of your intention to sell and offer them the opportunity to purchase the property if feasible. By involving tenants early in the process, you can foster goodwill and cooperation, essential for a successful sale.
Open homes and inspections
Coordinate with tenants to schedule open home viewings and property inspections, providing sufficient notice as per legal requirements. Establish designated times for inspections to minimise disruptions to tenants’ schedules and allow ample time for property preparation. Clear communication and mutual respect between landlords and tenants are key to maintaining a harmonious relationship during the sales process.
Offer incentives to tenants
Consider offering incentives to tenants to encourage cooperation and maintain property presentation standards. Incentives such as rent discounts, relocation assistance, or compensation for open home preparations can motivate tenants to actively participate in the sales process and facilitate a smoother transition.
Offer the chance to break the lease
In cases where tenants’ express dissatisfaction or inconvenience due to the sale, consider offering an early release from the tenancy agreement. While this may result in a temporary loss of rental income, it allows for property improvements and easier access for potential buyers, potentially enhancing the property's marketability and sale price.
Pay for property clean-up
Invest in professional cleaning and maintenance services to ensure the property is presented in its best condition for marketing and inspections. A clean and well-maintained property enhances curb appeal and creates a positive impression on prospective buyers, increasing the likelihood of a successful sale.
Staging your property
Consider staging the property to boost its appeal and help buyers envision themselves living in the space. While full-scale staging may be challenging with tenants in place, simple enhancements such as decluttering, depersonalising, and minor decor updates can significantly improve the property's marketability.
