Selling a Tenanted Property

Real estate is best kept for long-term growth. Some investors go into rental property investments because they see the potential in regular income from such investments. But some circumstances may arise that will force the property owner to sell the property. The owner may have to pay off debt, or perhaps, there is little prospects of growth for the investment and it is best to sell it put the money in another form of investment.

If the property is currently tenanted, there will be certain issues that will need to be addressed.

No Need to Wait

Some property owners feel that it is best to wait for the tenancy period to end before they put the property on sale. While this is possible for some investors, it may be that the need to sell is urgent and there is no more time to delay. The sale needs not be delayed simply because there is a current tenant in the premises.

Having a current tenant in the property can be a good thing because the property will then be fully furnished. Many buyers prefer to see how the property will look when there are furniture and furnishings in it. This makes it easier for them to imagine the property’s potential. Additionally, a good tenant who keeps the property in good and pleasant condition will make the property more attractive to prospective buyers.

Communicate with the Existing Tenant

Out of courtesy, the property owners should communicate with the tenant before any sale is started. The tenant will be most affected by the decision to sell as there might not be any certainty if the property can still be rented by the tenant. It is possible that the new owner will keep the property as a rental investment. If this is the case, the tenant is still not sure if the rent will remain the same, or if the terms of the lease agreement will be retained.

It will be a very unstable situation for the tenant, so it is just right that they are informed of the intended sale right away. That way, they can be clear on the options they have or they can wait and see before they decide on what to do next.

Schedule Inspections

The owner and the tenant must agree on the schedules for showing the property to prospective buyers. It must be a convenient time for the tenant, or preferably, it can be during hours when the tenant is away. Showing the premises to prospective buyers can be disturb and violate the privacy of the tenant, so it is important that the arrangements are made with the full consent of the tenant.

Selling a property is big move and will require the assistance of a competent real estate agent. All Residential Real Estate can provide the owner with the skills and knowledge needed to get the best outcome from a property sale. Find out how the company can assist in the sale of a tenanted property by visiting their website or by talking to a company representative. (Source: http://realestatewollongongnsw.com.au)

 

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