Selling your tenanted property

Ready to sell your investment property and celebrate with unlimited
dumplings? Well, here’s all the important things to know before you sell

NEED TO KNOWS:

1. You’ve gotta give notice

Before selling, you need to let your tenants know of your intent to sell— in writing.

2. A fixed lease is fixed in stone

There are two lease types—a periodic lease or a fixed-term agreement.

– A periodic lease is easier to manage as you can issue a notice to vacate with eight weeks notice of a specific date. Thus, in 8 weeks of giving the notice, your property will be clear of its tenants.

– On a fixed-term agreement, landlords supply tenants with a notice of intention to sell but not to vacate. They can not be removed until the agreement expires—unless the lease is violated or a mutual agreement occurs. So, if there are eight months left on your tenants’ lease, your
house is sold with the agreement included.

3. Inspection times need to work for your tenants, too

If you’re looking to line up a few open homes, be sure to confirm that time with your tenants at least 24 hours before each inspection. Also, your tenants have the right to attend the open home.

4. Tenants have privacy rights; you just can’t pop in

Owners can’t pop into their property when it suits them. Admission into your home is negotiated with your tenant or through your agent.

TENANTS RIGHTS WHEN SELLING IN THE ACT:

The landlord must provide written notice to the tenants of their intentions to sell. And eight weeks is required after the notice is issue

Landlords cannot evict tenants on a fixed term agreement unless the tenant has violated the agreement or both parties reached a mutual agreement.

Landlords must provide tenants with 24 hours notice before sale inspections

If tenants did not receive notice of intent to sell, they can refuse landlords and property managers access to the property.

HOW TO GET TENANTS ON YOUR SIDE WHEN SELLING:

Reduced rent

Reduce your tenants’ rent over the week/s you plan to have an open home

The ol’ ticket bribe

A gift like tickets to a movie or a game can go a long away and the gesture is appreciated.

Help them secure their next place

Offer yourself as their next reference to help them secure their next place. A reference from a landlord goes a long way.

Honesty is the best policy

Be honest with your tenants and establish a clear line of communication—it’s vital to maximise your chances of a good sale.