Should I sell my investment property vacant or tenanted?
June 8, 2021
If you have made the decision to sell your residential investment property, it is important to consider whether the property should be vacant or tenanted before committing to the sale.
The first factor in making this decision is establishing how the property is presented while your renter is in occupation, and whether this will appeal to prospective buyers.
If there are certain works that you wish to implement on the property to improve its presentation, access to the property may be restricted if you choose to sell it tenanted.
Selling a vacant investment property
If your decision is to offer the property vacant, it will be necessary to issue the renter with a 60-day notice to vacate. The expiry date of this notice cannot be before the end of a fixed term rental agreement.
In order to give a notice to vacate at the end of a rental agreement on the grounds that your investment property is to be sold, you are required to provide evidence to the renter with one of the following documents:
- A copy of the fully executed and dated contract of sale
- A copy of the engagement or authority to sell the rented premises with a licenced real estate agent
- A copy of a contract of sale prepared by a licenced conveyancer or an Australian legal practitioner.
This evidence must be included with the notice to vacate. If the evidence is not supplied, the notice becomes invalid.
Selling a tenanted investment property
Should you decide to sell the property with the renter in place, there are rules pertaining to access to the property. An example might be if you require photography for advertising purposes or need to arrange viewings by prospective buyers.
There is also mandatory compensation payable to the renter during the selling period.
It is therefore imperative to seek professional property management advice if you are considering the sale of your investment property, to ensure that the tenancy is managed correctly before, during, and after the sale.
Get expert property advice from LDB
The experienced real estate team at LDB provides vendor advocacy services, which includes expert guidance in optimising the appeal and value of your property, as well as managing existing tenancies. These services also include:
- Arranging all quotations and works necessary in presenting the property for sale.
- Providing advice and recommendations as to method of sale
- Arranging inspection of property by prospective marketing agents and consider all marketing proposals, advertising budgets and commission structures
- Submitting marketing agent proposals to client and recommendation as to selection of marketing agent
- Arranging appointment of marketing agent and confirm commission structure and advertising budget
- Providing instruction to solicitor/conveyancer for preparation of Section 32, Vendors Statement, and auction/contracts of sale
- Arranging for solicitor/conveyancer to prepare Section 27 deposit release and follow-up
- Ensuring adherence by marketing agent of commitments made, including placement of all proposed advertising, conducting open for inspections and all other marketing methods
- Liaising regularly with marketing agent as to progress of sale and advise client accordingly
- Providing advice and recommendations to client concerning offers received
- Providing advice and recommendation to client as to reserve price (where applicable)
- Providing advice and recommendation to client on day of auction (where applicable)
- Verifying all advertising expenditure at conclusion of sale.
We provide our clients with professional support, advice, and recommendations throughout the entire sale process, ensuring you achieve the best result for your investment property.
For strategic property investment advice, give us a call on (03) 9875 2900 or send us details via the contact form below.