Rockhampton investors: How to sell a tenanted investment property

If you own an investment property in Rockhampton or the Capricorn Coast, now could be the perfect time to sell. Over the past few years, property values in the region have increased significantly, and demand for quality homes and units remains strong. 

Many investors are ready to capitalise, but think they can’t sell because they have a contract with their tenants that doesn’t expire for several months. This is a common misconception, but it is definitely possible to sell an investment property with tenants in place. 

Selling with tenants: What you need to know

One of the biggest concerns for investors is how to sell a property that already has tenants living in it. The good news is that having tenants doesn’t stop you from selling. In fact, it can even make your property more attractive to buyers.

If your tenants are on a fixed lease, you’ll need to honour the agreement. In this case, the buyer simply steps into your shoes as the landlord until the lease ends.

Many investors are on the lookout for a property with tenants in place, especially tenants who are reliable, tidy and always pay on time. This means they won’t lose money advertising the place and vetting new people. It’s a big plus because they will have steady rental income from day one.

How to sell with tenants successfully

When selling with tenants, communication and respect are key.

Here are some tips to make the process smoother:

• Work with an experienced agent: Choose a local agent who understands how to manage sales with tenants. They will act as the go-between, keeping everyone informed and reducing stress.

• Respect tenants’ time and privacy: Tenants have the right to quiet enjoyment of their home. Provide reasonable notice for inspections and photography, and strive to minimise disruptions.

• Arrange professional photos: While a tenanted home may not be styled like a display property, professional photography can still highlight its best features. Be realistic, though. Presentation may not be perfect because tenants won’t be as enthusiastic about the sale as you would be.

• Set clear expectations: Let tenants know the process and timeframes. Usually they’re more likely to cooperate if they understand what’s happening.

• Show your appreciation: It’s their house but your tenants will have to be elsewhere during open homes, which is frustrating. Offer some coffee or lunch vouchers to make things easier.
   

Most tenants are understanding, but some may find the process stressful or inconvenient. If the process is becoming all too difficult, you might decide to wait until the lease expires, choose not to renew and then advertise an unoccupied property. However, this does put you at a risk of loss of income, so speak to your agent about the best strategy. 

Advertising a tenanted property

When marketing the property, be transparent about the tenancy details. Buyers should be made aware of:

• When the current lease expires
• The current rental income
• The quality of the tenants (long-term, reliable, etc.)
   

Investors in particular will see value in acquiring a property that’s already generating rental income. 

Extra tips for a smooth sale

• Offer flexibility for inspections: Try to schedule viewings at times that suit the tenants.

• Keep the property well-maintained: Take care of any outstanding repairs before listing. This not only helps with presentation but also reassures buyers.

• Offer to pay for cleaning: If your sale process is becoming drawn out, paying for cleaning prior to inspections will ensure the place looks its best and save your tenants from constantly having to dust and vacuum. 

• Highlight investment potential: Emphasise strong rental returns and local growth in your property listing to attract more investor interest.
   

Need to sell a tenanted property in Rockhampton or on the Capricorn Coast? 

Central Queensland’s strong property market means investors can achieve a successful sale and a favourable outcome, even with tenants occupying the property. 

You don’t have to wait for the lease to expire. Contact us to find out more today.