Selling a Property with Tenants – Pros and Cons

When it comes time to sell an investment property, one of the biggest decisions you’ll face is whether to sell with the tenants still living in the home or to wait until the property is vacant. Both options have benefits and drawbacks, and the best choice depends on your circumstances and goals.

The Pros of Selling with Tenants in Place

1. Continued Rental Income
While the property is on the market, you’ll continue to receive rent. This can help cover mortgage repayments, rates, and other holding costs during the selling period.

2. Appealing to Investors
Many buyers in today’s market are investors who would prefer to purchase a property that already has a tenant. It saves them the time and effort of finding new tenants and provides immediate rental income from settlement day.

3. Maintained Occupancy
A property that’s occupied looks lived-in and well cared for, which can sometimes be more appealing to buyers than an empty home. It also reduces the risk of break-ins or vandalism during the campaign.

The Cons of Selling with Tenants in Place

1. Limited Access for Inspections
Tenants have rights under tenancy laws, which means access for open homes and private inspections must be negotiated. This can result in fewer opportunities to show the property to buyers and potentially a longer selling campaign.

2. Presentation Challenges
Not all tenants keep a property “show home ready.” Even good tenants may have belongings, clutter, or furniture that doesn’t highlight the home’s best features. This can impact the first impression buyers get.

3. Reduced Buyer Pool
Owner-occupiers may prefer vacant possession so they can move in immediately. If the property has tenants on a fixed-term lease, it may narrow your buyer pool to mainly investors, potentially affecting competition and sale price.

4. Tenant Cooperation Varies
Some tenants are fantastic and accommodating during the sale process. Others may feel inconvenienced and less willing to assist, which can make the process more challenging for everyone involved.

Finding the Right Approach

Deciding whether to sell with or without tenants comes down to your goals:

• If you’re targeting investors, having tenants in place can be a real advantage.
• If you want to appeal to owner-occupiers, it may be better to wait until the property is vacant so buyers can more easily imagine themselves in the home.

✨ Thinking of selling your investment property? Our team can help you weigh up the options, navigate tenancy laws, and tailor the best strategy to suit your goals. Contact us today to arrange a confidential chat about your property and the current market.