When it comes to selling an investment property, investors often struggle with deciding whether to have the property vacant or tenanted.
On one hand, a vacant property offers flexible access for inspections, and the investor doesn't need to worry about the property's cleanliness. However, the downside is that there is no rental income during the marketing and sales period.
On the other hand, by keeping the tenants in place, the property can be presented as a current investment option, potentially appealing to another investor. However, this approach may cause stress and upheaval for the tenant and may require negotiation and incentives, such as a rent reduction or monetary compensation, to ensure cooperation.
Having open and timely communication with your tenants is crucial to ensure a successful sale of your property. Prior to listing your property on the market, it's important to inform your tenants about your intention to sell. This approach allows them to explore the option of purchasing the property themselves, especially if they have a strong attachment to their current home and have the financial means to do so. It's advisable to contact your tenants directly and provide them with an opportunity to purchase the property. Failing to inform them ahead of time can create tension and reluctance, making it challenging to secure their cooperation in selling the property.
Ultimately, there are pros and cons to both methods, and it's crucial to determine which option is best for the individual situation. Investors should inform their property manager of their decision and consider offering incentives to their tenants to ensure the property is presented in the best possible way.
It's essential to work together to find a "win-win" scenario and achieve the best possible outcome for all parties involved.
If you're considering selling your property and want an appraisal, please contact Casey Healey at casey@c21newcastle.com.au or call 02 4928 7400 for an obligation-free chat.