Selling Your Investment Property: Key Considerations and Best Practices

5min read article by Connor Tait

Deciding to sell your investment property is a significant step in your investor journey and one that can help free up the necessary funds for your next venture. When you choose to sell, tenants may still occupy the property, requiring you to decide whether to maintain the tenants throughout the sales campaign or provide them with the required notice to sell the property vacant.

Occupied vs. Vacant Sale

Occupied Sale

  • Advantages:
    • You continue to receive rental income until the settlement date.
  • Disadvantages:
    • It may be more challenging to sell the property with tenants in place.

Vacant Sale

  • Providing the required notice to tenants on a periodic agreement can facilitate selling the property vacant, potentially making it more attractive to a broader range of buyers.

Understanding the Legislation

Your sales agent will advise you on the legal requirements when selling a property with tenants. If tenants are on a fixed-term lease, the lease terms remain until it expires. For tenants on a periodic agreement, you can give notice to vacate if you prefer to sell the property vacant.

Your sales agent must notify the tenants about the sale and coordinate open homes and private inspections. Offering the tenant the chance to break their lease without penalty can also be considered if it benefits both parties.

Repairs and Maintenance

Before listing the property, address any necessary repairs and maintenance. Minor improvements can also enhance the property’s appeal. If the lawn and gardens need attention, consider hiring a gardener for maintenance during the sales campaign, rather than relying on the tenant. The same applies to cleaning; arranging for a professional cleaner can ensure the property remains in top condition.

Communication is Key

Successful sales rely on clear communication with all involved parties. A skilled sales agent will ensure everyone’s needs and expectations are addressed throughout the sales process. They will prepare you and the tenant for what to expect before, during, and after the sales campaign, ensuring compliance with relevant legislation and achieving an optimal result.

Why Choose a Different Agency?

It’s very common for investors to select a different agency to sell their investment property than the one managing it. As a sales only agency we have successfully represented many investors at Tait Real Estate and there are several reasons why investors make the switch but one is crucial for you to consider before appointing the same agency.

Our agency is well-qualified in all aspects of the sale process, particularly around investment properties. Considering selling your investment? Contact our agency on 0493 674 245 for a free no obligation and confidential discussion and let us answer any questions you have on selling your investment property.