Having tenants in the property can add a level of complication for all parties so it is imperative to follow legislation and work with the tenants for a happy, stress-free sale.
Timing the sale to ensure investors are selling at the right time is important, but also having the consistency of the rental income right up until the sale can make a big difference to financial stability.
LANDLORD FAQS
CAN I SELL WITH A LEASE IN PLACE?
Absolutely! Before you begin the sale process, you must notify your tenants through the Form 10 Notice of Intention to Sell. You and your tenants are protected by the General Tenancy Agreement in place from a legal standpoint. Open communication with your tenants is key to a less complicated sale.
HOW OFTEN CAN I HOLD INSPECTIONS?
Legislation stipulates tenants must have written notice with a minimum of 24 hours before the property will be shown to a potential buyer. But keep in mind you cannot interfere with the tenants right to peaceful enjoyment of the property, so having your agent sit with you and work out an Inspection Plan with your tenants goes a long way!
IF IT SELLS CAN I EVICT THE TENANTS EARLY?
If your tenants are on a fixed lease, you cannot ask them to vacate the property unless they break the terms of the lease. You can ask them to leave if they're on a periodic lease agreement with 1-month notice from the contract of sale in QLD if vacant possession is required.
CAN'T THEY LEAVE EARLY IF I WANT THEM TO?
There are benefits and incentives that can be offered to tenants in hopes of reaching a mutual agreement of early termination. You can consider the possibility of offering assistance in moving costs to help smooth the negotiations and can lead to a higher success rate of acceptance. If both parties agree, in writing, the fixed term agreement can be mutually terminated.
WON'T A TENANTED PROPERTY DETER BUYERS?
Selling a tenanted property can come with risks of deterring owner-occupier buyers who wish to occupy the property immediately, but it is also an incentive that attracts investors for a more secure investment with good tenants already in place at the time of purchase as it can assist in securing investment only loans. Ensure you assess the calibre of your tenants and presentation of the property when making your decision to sell with tenants.