Work with Tenants to Secure Sale
Selling an investment property with a tenant is a skill, according to RE/MAX Success Sales Consultant, Tiffany Krause.
The property market is cyclic and quite often when an investor decides to sell, there is a tenant in place with the lease not due to expire for some time.
Miss Krause emphasised an experienced agent will work in consultation with the licensed Property Manager to ensure the correct process is followed in accordance with the legislation.
“We should always remember during the term of the lease it is the tenant’s home. This is vital for a smooth sales campaign,” Miss Krause said.
“There is a definite advantage in selling with the same agency who manages the property as a rapport will have already been established between the parties. In the first instance, it is paramount to approach the tenants and ask questions as well as establish the preferred time for inspections with a minimum of 24 hours written notice. Due to religious and cultural beliefs in a multicultural society or shift work, there needs to be an agreement when inspections may occur. Presentation is also important. Furthermore, the tenants need to be reassured of their privacy and security.”
In some instances tenants may wish to move out early and be released from the tenancy without penalty hence the property can be sold with vacant possession. Real estate agencies with a large rent roll can quite often assist tenants with relocation of their choice.
Miss Krause also highlighted the benefits of a good working relationship between the tenants and the agent. A lack of communication or understanding may hinder the process.
“From our experience it is best to be open, honest and upfront with tenants at all times. We also advise the tenants that their lease terms of the tenancy will appear in all marketing material. This conveys trust and confidence,” Miss Krause reiterated.
As an investor, if you feel the time is right to sell and make some profit, don’t let a tenancy prevent you.
We should make absolutely certain that the legislation is strictly followed at all times and have a harmonious working relationship between the tenant, Property Manager, Sales Agent and Landlord.
“Keeping tenants happy is a smart strategy and a rewarding relationship,” Miss Krause concluded.