Investors are often confused as to whether their investment property should be vacant or tenanted when selling.
On one hand, if you elect to have the property vacant, you have flexible access for inspections and you don't need to consider the cleanliness of the property. On the downside however, you are not receiving rental income during the marketing and sales period.
In contrast, by allowing tenants to remain in the property, you can also improve the scope for another investor to purchase as they can see that a lease is in place and that it is a current investment option.
Ultimately, there are benefits to either method - It's important to decide which option works best for you. If you are thinking of selling please consider these points:
• Let your property manager know - they should be the first people to know once you have decided which agent will sell your property as they have the relationship with your tenant and can arrange access and inspections for your selling agent.
• Consider an incentive - it is to your benefit that the property be presented at its best, and be available when inspections are necessary. This may involve some goodwill to your tenant like reducing the rent for a set period, or even monetary compensation.
OTHER THINGS TO CONSIDER
The fact that the property is on the market can create stress and upheaval for the tenant, and if they are in a non-fixed term lease, they know they may have to move in the near future. If they are in a fixed term lease, this is guaranteed to the tenant (unless they agree otherwise, which also may involve a monetary form of compensation by negotiation).
The best result for everyone concerned will be gained by working together to work out a 'win-win' scenario and bring the property to a sale with the best achievable outcome.
If you are considering selling and would like an appraisal on what your property might achieve in the current market please contact Casey Healey for an obligation-free chat, on casey@c21newcastle.com.au or phone 02 4928 7400 today.