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I want to sell my investment property... now what?

Writer's picture: Skye TaylorSkye Taylor

Updated: May 16, 2023

Things you need to know if you are considering selling your investment property and you have a tenant... all the tips to make this a smooth process with a great outcome for all.






First of all, if you are thinking of selling - have you read my article on why I don't recommend selling the investment property? Click here to find out why I suggest you buy well and never sell.


Perhaps you need to sell for other purposes, and you have spoken to your trusted advisors and come to the conclusion that now is the right time to exit your investment strategy.


Generally in SA, most tenancies will be on a fixed term agreement, which means the tenancy is protected above any change of ownership/sale until the end of that fixed term. If you decide to sell in the middle of this term, you will have to sell it occupied. My tips below are for this exact scenario.


However, if you have a tenant with a periodic tenancy, this can be a different outcome. My suggestion is to sell the property vacant if you can, have the property professionally styled (where appropriate) as a tenancy can be a deal breaker for those buyers looking to move in straight away. There are some properties which are better to sell tenanted, such as units, but in most cases, the property will not be presented in a way which will most benefit you and a tenancy can be a limiting factor.



Tip #1 - Empathy will get a greater result


Tenants completely understand that there is no security or guarantee that they can remain in the home long term, as it is not their home. However it can be very confronting to get the news that the property is being sold, and the future remains unstable and unknown.


Yes there is a possibility that the home will be sold to another investor, but there is also a high chance the home will be sold to an owner occupier, and they will need to vacate within 30-90 days.

The uncertainty is what has emotions running high, and trust me, you want the tenants support and cooperation in order to get a good result! I have seen tenants make this very difficult, and can potentially cost you thousands and thousands of dollars with a lower sale price, and a longer time on the market.


Tip #2 - Open inspections


Open inspections are truly annoying as a tenant. Think about it, they have to clean the home every week, leave their home at a set time, possibly remove pets, and all for no financial benefit to them.


You don't mind going through this process as an owner, and you know there is a good end result for you, but in most cases, this sale and open inspection process is highly stressful and may result in the tenants having to vacate! Understanding it is a lot of effort and interruption to the tenants lives will go a long way to getting their cooperation.



Tip #3 - Compensation and other sweeteners


There are a number of things you can offer to your tenant, to try and make this easier for them, and all will result in a smoother, faster sale. It is up to you if you offer some of these, or a combination, but speaking to your property manager about what will work best for the tenant may also assist.


You can offer a discount on the rent, depending on the price, this might look like $50 per week for the duration the home is on the market.


You can offer for the home to be professionally cleaned each week, removing the hassle for them to do it. This also ensures your home is presented in the best possible condition for opens! Win-win is what I always look for.


You could offer movie tickets or coffee vouchers, for them to have something to do when they have to leave the property. When tenants refuse to leave the home during opens, this makes the selling agents job very difficult as buyers feel uncomfortable and will rarely spend much time in the home.


Tip #4 - Timeframes


Generally it is considered reasonable to do 1 open inspection per week on a tenanted property. These times can be organised with the tenant well in advance for the first month.

After the first 30 days (which is the most valuable time on the market) it is recommended to give the tenant a break, and go to fortnightly open inspections.


Tip #5 - Choice of agent


Your choice of agent will have a huge impact not only on your tenants, but on the eventual outcome.

Choosing an agent who will not only work for you and get you the best sale price, but one who is empathetic and will develop a relationship with your tenants will go a long way to a hassle free outcome.

A great question to ask when you are interviewing agents, is to find out what their strategy is to manage the existing tenancy. I bet many won't have given this much thought...


Taylored Property - solutions for your property needs


You may not be aware of this as I choose not to market this widely, but Taylored Property can sell your home also.


Whilst I specialise in property management, with a strong sales background, I am happy to work with my existing clients if they choose to divest their property. My focus remains always on providing excellent outcomes for all my clients, both landlords and tenants, and ensuring a "taylored" experience for all as a property partner in your journey.

Call 0426 241 676 or email hello@tayloredproperty.com.au if you want to find out what your options are, or to discuss your investment property plans.

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