Do you have a Gold Coast investment property you’re thinking of selling? If you have tenants there are a few things you should take into consideration. At Elanora Realty, we can help you avoid any complications regarding lease agreements and still get the best price for your property.
Some factors you need to consider include your responsibilities to your tenants, the way you will present your property and the fact that your prospective buyer may not want a tenanted property.
Notifying your tenants
Before you put your house on the market, you must give them written notification that you are planning to put your property on the market. In Queensland, this is done via a Notice of lessor’s intention to sell and must include details of how you plan to market your property.
Viewings and inspections
Under Queensland law, you must give your tenants at least 24 hours’ notice prior to showing your property to a potential buyer. If you plan to hold an open house, you will need to get your tenants’ agreement in writing. You will also need to have their permission to take photographs that show furniture or possessions belonging to your tenant.
When you sell your investment, your tenants do not have to vacate the property if they are on a fixed term lease. The lease agreement with your tenants will be amended to show the change in ownership. If you require vacant possession, however, you can offer them compensation to end the agreement early and move out. That said, they do not have to agree to early termination of their lease.
Presenting your property
Unfortunately, when you have tenants, you cannot dictate how your property is presented at viewings. Most tenants do the right thing and keep your property tidy, but bad odours and dirty kitchens or unmown lawns can turn some buyers away.
Buyers may not want tenants
Not all buyers want to purchase investment properties. Some may be buying to live in the home themselves. If this is the case, they may be put off by a property that comes with long-term tenants. On the other hand, property investors will find these arrangements very attractive.
Loss of rental income
It may seem more attractive to break your lease agreement and sell the property untenanted. This means that you will lose out on a source of income. It could take a few months for your property to sell and this would be a substantial loss of income.