Check out market updates

Thinking of Selling your Tenanted Property?

If you’re thinking of selling your property that is currently tenanted, then there are definitely some things for you to consider;

The tenant needs to be informed of your intention to sell.
You have automatically narrowed the market you are appealing to. Many buyers in the market to purchase are actually owner occupiers.
Home opens can be a tricky time.
Agents themselves can impact on the sale.
Lets expand on those points.

1. The tenant needs to be informed of your intention to sell. When a tenant occupies a property they have a legal right to quiet enjoyment of the home, and even though there are numerous reasons why an owner cannot hold onto a property for investment, they must be aware that an agent needs to tread carefully when putting tenants in this position. Some tenants can and will take offense and do everything possible to impact the sale of the home.

2. Prospective buyers wanting to be owner occupiers may feel the tenant (especially if on a long term lease) will hinder their plans of moving in. They will automatically rule out your home from their wish list if it doesn’t equal the value that they are seeking. An owner can attempt to make an arrangement between themselves and the tenant, normally in the form of a financial incentive or remuneration, in order to assist a tenant in moving out and finding new accommodation prior to the specified end of the lease. The owner can never force a tenant to leave the premises prior to a fixed term lease ending whilst the rules differ slightly for periodical leases and written notice must be given.

3. Home opens. This is definitely a very tricky time, as the tenants are not emotionally invested in the sale of the home and therefore find home opens or inspections far more intrusive than an owner occupier would. They do need adequate written warning of upcoming inspections which are held at a reasonable time of day. With difficult tenants the presentation of the property is generally lacking and numerous cancellations at short notice may be experienced. It’s an extremely stressful time for all involved.

4. If your property is managed by an agency that is different to your selected sales agent, you must ensure that you give strict direction to both agencies involved. A property manager that doesn’t want to lose a property from their portfolio may advise the tenant to be difficult in order to impact or prolong the sale and keep the property on their books. Agents must work in the owners best interest at all times although we have sadly often witnessed this become a problem in many property transactions. Communication between the owner and the agents involved will assist in the guarantee that you have the smoothest transition possible. You’re the boss, stand your ground!

Summary: If you plan on taking your tenanted property to the market, open and upfront communication is an absolute must between the owner, the agent(s) and the tenant. If one area is lacking it can easily cause the sale of your home to fail.

Leave a Reply

Your email address will not be published. Required fields are marked *