Selling a rental property with a tenant in place can be a little more complex than selling a vacant property, but it is very achievable with the right approach. 

One of the first steps is to inform your tenant well in advance. Providing ample notice helps maintain a good relationship and ensures the tenant has enough time to prepare for the sale process. 

Check your state or territory’s regulations regarding the required notice period to ensure compliance. It is crucial to maintain open and respectful communication with the tenant throughout the sales process. Inform them of each step and any changes to the inspection schedule promptly. This will help reduce potential friction and make the process smoother for all parties involved.

A professional property manager, such as Raine & Horne, experienced in handling properties with tenants can make a significant difference. An experienced property manager can coordinate with the tenant, schedule inspections, and manage any issues that arise. 

Since selling a property can be inconvenient for tenants, consider offering them incentives to ensure the property is kept clean and presentable. This could be reduced rent, professional cleaning services, or even gift cards. Making the tenant feel valued can lead to a smoother sales process.

That said, you cannot demand that the tenant always keep the property tidy. Instead, work with your agent to schedule inspections at convenient times for the tenant, such as coordinating around their work schedule or family routines, like a baby’s nap time. 

If the tenant has pets, coordinate with them to ensure the pooches or moggies are managed during open for inspections. This might mean the tenant takes the pets out during open inspections. Clear communication and planning can prevent any potential issues.

If your tenant is on a long-term lease, the property is more likely to attract investors than owner-occupiers. Ensure that the lease details are clear and highlight the potential rental income to prospective buyers. Selling to an investor means the tenant can remain in place, which can be a selling point. Be aware that the lease transfers with the property, and the new owner must honour the existing lease agreement, regardless of the state or territory where the property is located. Ensure that this is communicated clearly to both the tenant and potential buyers.

While significant renovations might be challenging with a tenant in place, minor improvements can still make a big difference. Focus on the exterior by doing small-scale landscaping or gardening to enhance curb appeal. Inside, consider upgrading old appliances such as stoves and ovens, which can benefit both the tenant (especially if they are able to stay on after the property changes hands) and the sales process. 

By following these guidelines, you can navigate the sale of an investment property with a tenant in place effectively, ensuring a positive outcome for you and your tenant.

Your local Raine & Horne Property Manager, in collaboration with a Sales Agent, can support you every step of the way through the sale of your investment property. Contact us today for a free property appraisal.