Landlords can sell their properties with a renter, even if a fixed-term tenancy agreement exists.

But whether it is better to sell a property with a tenant in place or vacant will depend on the property type. For example, if you are selling an apartment in an inner-city location, the chances are that there will be a stack of investors looking for properties like this. So, if the apartment comes with a tenant on a fixed-term agreement, yield-hungry investors will be more open to buying it as there won’t be any costs in finding a renter.

However, selling an entry-level priced house in an outer suburb of a capital city or regional town might appeal more to first-time buyers or upgraders with families. So, buying the property minus a tenant might prove more appealing to those buyers. In this case, you might want to look at the lease to see when it expires, which might influence the timing of a decision to sell. If there is no fixed-term lease in place, it will be up to the buyer to decide whether to ask the tenant to vacate or not.

 Of course, there will be more restrictions about when potential buyers can inspect the rental property because the tenants must be given sufficient warning about possible open homes or private inspections. Also, some tenants may be less worried about how the property presents to potential buyers.

 If this is a possibility, as a landlord, you might want to offer your tenant some incentives. The carrots might include a rent reduction for the sale period or a cleaner to ensure that the property presents at its best. If the tenants are weighing up whether to leave, and a vacant property suits your sales goals, you could throw in the offer of paying for a removalist for them. At the end of the day, once you decide to sell, it’s important that you work with the tenant to ensure the very best sales result.

 On the flip side, empty properties seem smaller, and as an investor, you’ll take a financial loss from no rent if you’re selling a property tenant-free. To address any empty spaces, professional staging can help. You can discuss the benefits and costs of staging a vacant investment property with your Raine & Horne sales agent.

To find out more, contact your local Raine & Horne Property Manager today.