Selling a Property During a Tenancy

Modified on Mon, 26 Aug at 11:21 AM

General information for agents

· The most important thing for an Agent to consider is that they should be working with the Tenants and treating them respectfully. Working with the tenant will help achieve a much more positive result than dictating to the tenant what they ’must’ do with regards to the upcoming sale.

· Whilst the property may be owned by your client, it is the tenant’s home.

· Be mindful that as a salesperson when you are making first contact with the tenant may be a shock to them – especially if they are not aware the property is going on the market. A good way to overcome this is to request the Property Manager makes first contact.

· Are there forms required to notify the tenant about the property being put on the market?

· Are there restrictions on what you can and cannot do without tenants written consent?

o Using photographs for marketing purposes with tenant’s possessions in them?

o Conducting Open Homes and Private Viewings

o Entering the property for purposes relating to the sale of the property (e.g. in Qld you technically cannot enter the property to conduct a B&P without tenants’ consent as there are no grounds noted on the Entry Notice that allows for this purpose)

· Lease Terms are more powerful than the Contract Terms when it comes to the tenancy. Be mindful of this and any restrictions on what can and cannot be done

o Don’t discuss a potential of a rent increase if the relevant state legislation doesn’t allow a landlord to increase rent straight away.

o Don’t discuss that you could “get the tenants out” earlier than the lease end date if there has been no agreement established with the tenant prior

· Explain the marketing process with tenants. Let them know their options but also discuss with them the least intrusive plan you can suggest. E.g. open homes verse multiple private viewings

· If need be, incentivise the tenant to cooperate

o Remind them that the buyer could ultimately be an investor and they may not have to relocate.

o Give them vouchers for the local coffee shop so they are more inclined to leave the property for the duration of an open home and letting buyers have the freedom to inspect the property

o Discuss with the property owner the possibility of a rent reduction / compensation for the duration of a marketing campaign if the tenant is not willing to be as cooperative as you’d like

HELPFUL LINK - Previous Webinar

You can check out a webinar we held previously on this topic via:

https://us02web.zoom.us/rec/play/l7ucI9XwGog5EJSa64-45U-lKNa1nxXIkp3dx9IllaVmAI-gjBP7stdj1FhFmay6a4LAbwBXs8d09wGG.CziwxWJh76z0Rfiu?hasValidToken=false&canPlayFromShare=true&from=share_recording_detail&continueMode=true&componentName=rec-play&originRequestUrl=https%3A%2F%2Fus02web.zoom.us%2Frec%2Fshare%2Fh2R8fnWVLNG5-c1yo-da_V6GtPM3hJ4tYhZDP1wsi8tNUh0T0Ez3qBx6wRSal2GL.O21or5mym3ZYFbzv