While selling a house with tenants is a situation that landlords right around the nation often encounter at least once, what special considerations apply?
Once you’ve managed to successfully purchase your first home, there usually comes a point where many Aussies start looking at their options for purchasing a second one. For the lucky few who own multiple properties and have the title of being a landlord, selling a house with tenants already present is not an uncommon occurrence.
As many property investors know, there are a number of rules and regulations in place to protect both the owner and the tenant. While these do vary between each state and territory in Australia, what are some of the basics when it comes to selling a house with tenants?
Five Factors To Note When Selling With Tenants
Financial and personal circumstances can change over time, and these ebbs and flows can often forge a new path forward for your investments – especially property. However, landlords who provide a place of residence for others can’t simply wedge a ‘For Sale’ sign on the front lawn without following the right legal avenues first.
Given how tight the national rental market is, tenants are understandably not thrilled with the prospect of moving if their house is sold. Between sourcing a new abode, removalists and paying bond, the endeavor can easily set them back anywhere between $2000 and $3000.
At the end of the day, selling a house with tenants is perfectly legal for any homeowner, but there are a few methods to take note of as a means to keep your tenants happy as well as nailing a seamless sale.
Leases Remain Valid – The key consideration to remember when selling a house with tenants is that just because you’re ready to call it a day, doesn’t mean that your legal obligations also go up in smoke. A landlord cannot terminate a fixed-term agreement for the sale of the property, but a lease break can be a valid option if all parties consent.
Know Your State Laws – In all Australian states and territories, landlords are legally allowed to sell their property whenever they like for any reason. While the law does have protections in place to cover tenants from being evicted, the rules vary between each jurisdiction, i.e. Victorian landlords are required to disclose an intention to sell before entering a new fixed term lease.
The Right To Privacy – If your house already has residents, showcasing it to potential buyers can be tricky. In most states and territories, written notice must be provided to the tenants at least twenty-four hours before the property will be shown to a potential buyer, and written consent is required if you wish to take photos of the inside areas of the dwelling.
Offer Incentives – Selling a house with tenants can be enormously inconvenient for the people renting the property in question, so it’s important for homeowners to do everything in their power to get them onside. Be considerate with inspections and try to keep a regular schedule each week, and offer rental discounts in exchange for keeping the property pristine.
Communication Is Key – As a landlord, it’s important that you give your tenants the heads up about your intentions to sell. Many tenants love their ‘home’ arguably more than you do, and in many cases they may even be the first to put in an offer if their financial situation allows for it. A good tenant can make or break a sale, so be transparent and respectful with your dealings.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.