Selling a tenanted investment property

There are many things to think about when you are selling a rental property in Wollongong – especially if it is tenanted! Don't forget about the people renting your property, as it is the place that they call home.

If you are in the early stages of placing your property on the market, then the first thing you need to do is inform your property manager.

Sometimes the property manager can end up being the last person to know that the house has been placed on the market – resulting in a number of headaches for them and also the shocked tenants.

It can be a scary thing to wake up to a 'For Sale' sign on the front lawn of your rented house, and a group of people waiting at the door for an open home!

It would be best to have a sit down meeting with your property management team to discuss how to approach the tenants, get information about the tenants, and also to discuss the current lease.

If you're looking to sell to another property investor, then it's a good idea to get hold of the original property condition report that was undertaken when the current tenants took possession of the property.

This will show what condition the property was in when they first moved in, and would be a good reference point for the new owner when the tenants move out.

Obtaining a copy of the rent history report will also show if the tenants are good and have been paying their rent on time.

After you have familiarised yourself with the tenants, you – or your property manager – can let them know that the property is going to be placed on the market for sale. If you are going to be having open homes for your property, then you may want to identify set viewing times that are suitable for the tenant each week.

Offering the tenant a rent reduction during the selling period may also help to smooth over any bumps if they arise.

The most important thing to remember when selling a tenanted investment property is clear communication between the tenant, owner and property manager. This will help to minimise disturbance for the tenant, and ensure that the process runs smoothly.