There comes a time in every investor’s journey where they consider reducing their property portfolio to either free up some capital or reduce debt.
Actually, there are any number of reasons for deciding to sell – you may even have tossed around how this would look for yourself over the Christmas break
.
This question is probably best answered by BOTH your Accountant and your Real Estate Sales Agent.
And although marketing a property for sale, whilst continuing to receive an income from rent is very appealing, there are a few extra considerations to take into account when you have a tenant in place.
The main thing to be aware of is that there are strict rules that must be adhered to. We know we say this all the time, and it probably feels like there are a lot of hoops to jump through, but it is important to be aware of the legislative requirements when selling a tenanted property.
But… the good news is that rented properties are successfully sold all the time. In our experience, it works best when:
* The renter is provided with plenty of notice, it helps them get their ducks in a row too
* The process is clearly explained to the renter right from the start and it is adhered to throughout the campaign
*The property manager has a good relationship with the renter and is the one who initially gives them the “heads up” that the property is going to be sold. They can then reassure them if they have any concerns (an enthusiastic salesperson lobbing on their doorstep to share the news generally doesn’t go down too well).
*The selling agent takes the time to introduce themselves and sits down with the renter to create a plan to minimise the disruption to their lives as much as possible.
*Potential buyers are made aware of the conditions of the current lease agreement eg the notice periods required if they wish to move into it themselves.
*Both the selling agent and the property manager are “on the same page” and understand what all parties are trying to achieve. This will give both the owner of the property and the renter confidence in the process.
If you are considering placing your property on the market, please reach out and we can run you through how the process would look for your investment, including any potential obstacles that need to be navigated.
