How to Sell A Tenanted Property

Selling a property can be a complex process, especially when you are trying to sell a tenanted property! If you find yourself asking, “What if I need to sell my property while there are tenants in the property?” – fear not, as we are here to guide you through the intricacies of this situation.

Understand Your Tenancy Agreement

The first crucial step is to identify the type of tenancy your tenants are on. If they are on a fixed-term lease, it might be worth considering the timing of your sale. Waiting until the lease expires can broaden your pool of potential buyers, as the property won’t be limited to investors only.

Aren’t quite sure about the in’s and out’s of your agreement? No worries, get in touch with us and we can help!

Decide on Advertising with or without Tenants

Once you’ve assessed the tenancy situation, the next decision revolves around whether you want to advertise the property with tenants in place or a vacant property during the marketing phase. Each option has its considerations and implications for both you and the tenants.

Notify Tenants of Your Intentions

Regardless of your advertising choice, open communication with your tenants is paramount. Inform them of your decision to sell your property and discuss the implications, ensuring a transparent and respectful process.

Keep in mind, your tenants have been building a home there and displacement is a stressful time for everyone, so do be mindful of that in your approach.

Vacant Property Advertisement

If you opt for advertising with a vacant property, bear in mind that you must provide your tenants with a 90-day notice before the proposed date you want the property to be empty. Additionally, you must initiate marketing within 90 days of the notice to vacate.

For tenants on periodic tenancies, they have the option to give a 28-day notice to vacate.

Advertising with Tenants in Place

Should you decide to market the property with tenants still residing there, it’s important to note that if you sell to a buyer who desires vacant possession, you must allow for the 90-day notice period required from the settlement date. This ensures a smooth transition for both the new owner and the existing tenants.

A Strategic Plan for a Seamless Sale

To successfully sell a tenanted property, you will need a strategic plan and open communication. At Powell and Co. Property Management, we understand the delicate balance required to navigate this process smoothly. Our dedicated property management team is here to assist you in making informed decisions that align with your goals and respect the rights of your tenants.

To conclude, selling a property with tenants doesn’t have to be a daunting task. With careful consideration of your tenancy agreement, clear communication with tenants, and strategic planning, you can achieve a seamless sale that benefits all parties involved.

If you have further questions or need expert guidance, we are here to support you every step of the way, so contact a Wellington Property Manager today!