Have you finally decided to sell the property that you had on rent for a while? Sale of tenanted properties may pose to be a challenge, especially when the seller is in the haste to get a good price. The process of doing so may work against the tenant or the seller may end up disrespecting them by putting them offside. This can end up costing the selling tens of thousands in their selling price!
But it doesn’t always have to go that way. Here are some tips from our side on making a successful sale of a currently rented property and how to make it a win-win scenario for both the landlord and the tenant. Steer clear of these mistakes to maximise your sale price while keeping everyone happy!
Timing is everything
A good option is giving vacant possession to the buyer, rather than selling a property with a long lease left to run. Whatever you decide, plan accordingly; the ideal timing to market is 8 to 10 weeks before the lease ends. This way, you have the first 3-4 weeks to get your sale and the rest to settle. Selling at the right time allows the buyer to move in on settlement or renew the lease to avoid vacancy costs. This one tip will save you from limiting your buyer market, potentially losing thousands of dollars.
Score Full Marks on Presentation
How your property looks can entirely change the perspective of the buyer and help you make a successful sale quickly! For tenanted properties, it is crucial that you give your tenants some time to prepare the home, say two weekends or so, and provide them a checklist on what needs to be done. The advantage in this for the tenant is that they can impress the buyer, opening doors to the possibility that the new owner would want to keep them on board as tenants in the future if they are not planning on moving in themselves.
Get on the Same Page with Your Tenants
Pissed off tenants can be bad news for you! – they may stop making an effort on the presentation or downright refuse the agent to go through with the viewing, causing more issues for you in the long term. Respect their privacy and space, schedule viewing on weekends and make sure that the viewing time does not exceed 30 minutes per visit. This will not only keep the tenants happy, but also create competition among your buyers when they see each other at a busy home open.
Help Your Tenants with the Move
In case the lease isn’t being renewed with the sale, you can always help your tenants find a new place, parting ways on a good note. Where the tenants cooperate I look to help them along the way by providing them a reference letter and professional photos to support their applications for rent. Plus, I can connect them with our leasing team to help them find a new rental property minus any hassle and worry.
Do you plan on selling your tenanted property in near future? Get in touch with me for guidance on how to plan the sale and advice on getting the best price while keeping everyone happy.