Selling a Rented Property
With the sales market bubbling along quite well in so many areas across the country, you may be considering taking advantage of these great conditions and perhaps selling your investment property. This is not something that most people do everyday, so we thought it appropriate to let you know there are a few things to take into consideration when selling a rented property -
The main one is that there are strict rules that must be adhered to in this situation. We know we say this all the time, but …
From the amount of written notice we must provide a tenant before a buyer inspection to when they can be held, the process is heavily legislated.
As an example, advertising a property. It is only natural that when we are selling a property, we will also market it online. This means we need photographs / video, which often means that a photographer will be capturing images of the tenant’s personal possessions. Not only is this seen as an inconvenience by the tenant, legislation clearly states we are not able to use these photos without the written consent of a tenant if the images display any object that might identify the tenant or another person. There are many stories of compensation having to be paid by property owners if this step is missed.
Also, it is important to remember that although the tenant may not own the property, it is their home. Humans tend to get a little proprietary towards the place their family lives and it is important to be respectful of their emotions and the uncertainty this situation may create.
But it is not all bad news! Rented properties are successfully sold all the time. In our experience, it works best when -
The tenant is provided with plenty of notice, it helps them get their ducks in a row
The process is clearly explained to the tenant right from the start and it is adhered to throughout the campaign
The property manager has a good relationship with the tenant and is the one who initially gives them the “heads up” that the property is going to be sold. They can then reassure them if they have any concerns (nothing worse than an enthusiastic salesperson lobbing on their doorstep to share the news).
The selling agent takes the time to introduce themselves and sits down with the tenant to create a plan to minimise the disruption to their lives as much as possible
Potential buyers are made aware of the conditions of the current agreement eg the notice periods required if vacant possession is required
Both the selling agent and the property manager are “on the same page” and understand what all parties are trying to achieve. This will give both the owner of the property and the tenant confidence in the process.
If you are considering placing your property on the market, please reach out to your property manager who will be able to guide you through the process in more detail.