Having tenants living in your property can be a fantastic source of income. It’s a great arrangement, that is, until it comes time to sell your home! On the one hand, selling a property with tenants often makes financial sense for property investors who don’t want to miss out on what could be weeks or even months of rental income. Yet, at the same time, many homeowners discover that a tenanted property has a few extra hurdles.
Selling a home is hard enough, and having tenants living in your property can add to the headache. So, how do you navigate the legal and practical complexities and sell a property with tenants residing in your home? We’ll go through the most important concerns you might have when it comes to selling a tenanted home.
Can I sell a property with tenants living in it?
First off, yes – you can legally sell a property with tenants living in it until their lease expires. That said, before you slap a “for sale” sign outside your home, there are several factors to consider.
Is it a good idea to sell a tenanted property?
When deciding whether or not to sell your tenanted home, consider the below:
- How much time is left on your tenant’s lease? A long-term lease might be appealing to a few buyers, but may turn off others looking to live in the property in the near term. This is especially relevant for high-priced properties.
- What is your tenant like? A clean, helpful, and responsive tenant will likely be open to house inspections and will be far more willing to clean the property prior to inspections. On the other hand, a difficult tenant who isn’t willing to keep the property looking its best can hinder your efforts to sell, and may even mean the property takes a long time to sell. A tenant also isn’t legally required to leave the property during showings, which could be off-putting for prospective buyers.
- The type of property. Some rental properties have an excellent rental yield or are located in an area with lots of renters. If your property is receiving a great rental return for its market value, this could potentially be a good move for investors.
How to sell a property with tenants
These tips can ensure that your tenants stay happy and amenable to your requests, helping you get your property sold quickly – and for the best possible sale price!
- Communication; give your tenants notice before letting them know that your property will be listed for sale. The legislation states a minimum written notice period of 14 days before the premises can be first made available for showing. Think how you would feel if you saw an online advertisement of the home you’ve been living in. Giving your tenants adequate notice and keeping them informed is considerate.
- A poorly presented property can directly affect its sale price. Legally, you have to give your tenants at least 48 hours’ notice of inspections, but if possible, give them even longer. Better still, hold the inspections at specific regular days and times throughout the week.
- Offer your tenants an incentive during open home weeks, such as a slight rent reduction in exchange for a tidy home during inspections. If this arrangement still isn’t working, you can even pay for a cleaner to tidy up the property. The cost will be tax-deductible, and, if your property sells for a higher price, it will all be worthwhile!
Are you ready to sell your property with tenants? Overall, it can be a complex situation to navigate, but an experienced agent can help in negotiating with tenants and smoothing over any uncomfortable situations!
If you’re ready to sell, we can advise you on just how to prepare your home. Contact us for more information or advice on how to deal with tricky tenants!