If you still have tenants living in your property when you are ready to sell, there are certain procedures you will need to follow. Both landlords and tenants have rights when it comes to vacating a rental property, so it is important you are aware of the law in your respective state.
Initially, you may think that selling a property with tenants will be too difficult, however there are several benefits. Some of the pros and cons include:
If you are considering selling a tenanted property, the process will be a little different and will require a lot of communication with the tenant. If you are able to keep the lines of communication open between you and the tenant, it may help avoid problems down the track. Listed below are a few points you will need to consider before putting the property up for sale.
Vacation of tenant
Selling the property is not a reason to evict a tenant. If you have a fixed term agreement with the tenant, they are entitled to stay until the end of the term. Each state has different notice requirements. Click on the links below to get more information for your state.
NT: Landlords are required to provide 42 days written notice for a periodic tenancy.
Inspections for potential buyers
If there are prospective buyers who would like to inspect the property, you need to give appropriate notice to the tenant.
Set aside a few hours per week with the tenant where you can let potential buyers inspect the property. This way the tenant will know when they have to be out of the house and have plenty of time to present the property in its best light. You may also want to consider hiring a cleaner to come in before each inspection to give the property a professional clean.
Advertising the property
As the owner of the property, you are allowed to display a for sale sign on the property. However, when it comes to taking photos of the property, you may need to negotiate with the tenant. Photos of the interior and exterior are vital for giving a realistic overview of the property. Therefore, you will want to show off the property in its best possible light and not have too many personal possessions in the photo. Speak with your tenant about your ideas for the photos and organise a day where a photographer can come to the property. This way, the tenant will have time to remove any unnecessary items.
As you continue to buy and sell investment properties, it is important that you have the right lending team on your side. State Custodians has a wide range of home loan options suitable for investors. Take a look at our range or give our friendly Lending Specialist team a call on 13 72 62 today.