Investment property owners can sell their investment property at any time, including when it has a tenant in it. But to protect both parties, there are rules property investment owners must follow in relation to accessing the premises, notice requirements, and the tenancy agreement.

For instant, tenants legally need to know your plans, and you legally have to notify them of your plans to sell.

If the process isn’t properly thought through, there is a danger you could lose potential buyers who do not want a tenant. On the other hand, however, there is a danger you may lose rental income if tenants decide to move out before the property is sold.

The process needn’t be challenging if managed correctly; the key to selling a tenanted property is to communicate openly and transparently with your tenant.

Tenants play an important part in the sales process; for instance, they are making their home available for open inspections, and you want them to present the property at its best.

It is vital therefore that you keep tenants on side and ensure they know that you understand the process will inconvenience them and you appreciate their support. After all, it is their home, and if they were hoping to stay for a few more years, they are now going to have to rethink their long-term plans.

To help with the process, many landlords offer incentives, such as rental compensation, picking up the tab for cleaning for open inspections and in some cases, assisting with moving costs. We’ve also been able to keep the process running smoothly by helping tenants find another home if a similar property we manage happens to become vacant.

If you are thinking of selling your tenanted property, here are just some regulations you will need to factor into your planning:

• Regulations for landlords

You are required to give the tenants 14 days’ notice before the property is placed up for sale (this can be less if the tenant agrees for the property to go on earlier).

When marketing the property, you can photograph the outside of the premises, but any internal photographs cannot identify personal belongings and must be done with the tenant’s permission.

Once property is exchanged the tenant is required to be given a minimum 30 days’ notice to vacate when the tenant is on an expired/ongoing lease. (NB a tenant can leave within any time of this 30 days’ notice period, and only pay for the period of time they are occupying the property.)

• Regulations for tenants

Even if a tenant is on a current fixed term lease, they can give 14 days’ notice to vacate the property, if it was not a condition within their lease that the property was going to be sold within their fixed term period.

The tenant is only required to give you access two times a week whilst on the market (it can be more if the tenant agrees).

If communications are open and transparent, the chances are the tenant will work with you, and you will both have a positive experience and the best outcome.

For instance, in some cases, when property owners have written to their tenants with their intentions to sell, the tenant has actually bought the property! Thus giving the owner a quick sale, and saving them from having to go through the process of spending on advertising and time spent arranging inspections.

Our relationships with our tenants in the properties we manage is built on mutual respect and understanding. We pride ourselves on professionalism; how we communicate and manage tenants is just one of the many reasons our property management services are so successful.

Get in touch and see how our property management services can make your life easier and give you the peace of mind your property is being cared for.

Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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