Can you retain your tenant through the process?

By Andrew McGrath

18-08-2018 |
The decision to sell an investment property is a big one. You risk losing your tenant by putting the property up for sale - and therefore, losing your income stream during the Sale process. If you are considering selling an investment property, these tips may be useful. Reduce the rent A rent reduction will help sweeten the blow a little, for your tenant and will also help compensate for the extra work needed to present your property for sale. Choose your agent well You might automatically think that the managing Agent will have a good relationship with your tenant, but that is not always the case. Sometimes a tenant is more willing to help a new agent, rather than the Managing agent. Choose as if you were choosing for yourself. Plan well in advance, if possible Be sure that you have maintained the property well. Prospective purchasers will talk to your tenants ... they will find out all sorts of information! Make sure your tenant can tell them how well the house has been kept - and not list all the repairs they’ve asked for that haven’t been attended to. Price the property carefully Of course you want as much as possible from the sale of the property, but price it competitively. You want the property to sell quickly, the longer the process drags on, the more likely your tenant will get fed up and move on. It’s not easy living in a house that could be inspected at any time. Stay in touch with the agent The right agent will tell you how the tenant is coping, as well as how the market is going. Stay as informed as possible. Financial planning Of course, despite all your efforts the tenant still may chose to leave. Your agent will need to give the tenants two weeks notice, in writing, before the property hits the market. The tenant can decide to leave, with no penalty, because of the sale. Be sure you can afford the mortgage payments if that does happen. Our office has a specific marketing plan for rented houses, that is flexible and leaves some of the inspection arrangements up to the tenants. By making them part of the decision making team we hope to be able to keep them comfortable during the process. That marketing plan works! We were the managing agents of rental that recently sold. We are thrilled that the property was sold to an investor and our amazing tenants will be able to stay on in the home.