Selling your rental property while its occupied.
A common question from rental providers is can you sell a rental property while it’s occupied? Well, the short answer is yes, but it comes with a few caveats.
So, let’s walk through the process of selling an occupied rental property and the things you need to take into account.
An occupied rental can be sold
In all states and territories in Australia you can sell a rental property while its occupied and subject to a rental agreement, however the rental occupier has different rights depending on where the property is located.
For example, in New South Wales, if you haven’t informed the rental occupier at the commencement of a rental agreement that you intend to sell that property, they are within their rights to leave.
Meanwhile, rental occupiers need to be notified in writing that you intend to sell.
It doesn’t change the lease
It’s important to understand as the rental provider you can’t end the rental agreement prematurely if you intend to sell.
That’s basically because you have signed a legally binding agreement that the tenant has the right to occupy the home for a set period.
Throughout the selling period the tenant also has specific rights, including sufficient notice of inspections. That notice period is 24-48 hours depending on what state or territory the property is located in.
A little consideration for the rental occupier
It’s also important to appreciate that selling your rental property may cause some inconvenience to the rental occupier, so it pays to work with them and show a little flexibility.
After all, this is their home and now their right to enjoy that property is being interrupted by inspections.
You might choose to address this inconvenience by:
- Offering a rent reduction
- Making set inspection times so the rental occupier’s life is less disrupted
- Having your property manager liaise with them to find suitable times or dates
- Providing as much notice for inspections as possible
- Communicating throughout the sale process, so the rental occupier can make plans
Pros and cons
There are both pros and cons to selling your rental property while it’s occupied.
On the pro side, it showcases your property as a viable investment, and you still receive income throughout the sale process.
On the flipside, a rental occupier may not present the property in the same way that you would, and for buyers looking to occupy the home, a rental occupier on a fixed lease may act as a deterrent.
Talk to your property manager and agent
If you are considering selling your rental property, it pays to talk with both the property manager and your selling agent in advance.
They can walk you through the options available, including ways to work with the rental occupier and smooth the process.
How we can help
Our experienced property managers pride themselves on establishing great relationships with both tenants and landlords. We manage every property as if it were our own and you can learn more about our property management services here.
Alternatively, if you’re looking to sell your rental property, you can talk to our agents here.