- Selling your investment property can be a smooth and profitable process.
Every state has differences however there are more legal documents involved with a tenanted property namely those required to be issued to the tenants to advise of the sale and gain access when required.
But don’t worry your Agent and property manager will take care of this.
Your agent should start by having a chat with the tenants. Who knows maybe they want to buy the place. Jodi and I have some close friends who were renting a place they loved and when they were advised it was to go on the market they immediately asked about making an offer to purchase the property. They got the place and the vendor sold with no marketing costs. Everybody came out in front.
On the other side of the coin maybe they have been looking to get out of the lease early. If you are looking for both investment and owner occupier buyers then this situation may suit everyone.
Most importantly your tenants need to be reassured of their privacy and security of belongings. Communication with the tenants and demonstrating you care about the impact this may cause to them will help open up a cooperative relationship as this will also help to ensure the property is well presented for inspections.
It is not always possible to meet everybody’s needs exactly, however your agent should involve your tenants when deciding on open inspection times and provide a written schedule.
By now we have hopefully established a strong or at least workable relationship with the tenants and are ready to start our open inspections. The tenants cannot prevent inspections provided the right process is followed however there could be one more hurdle to overcome.
Messy tenants might seem to cause roadblocks but there is really not much that can be done. If the place is essentially clean, the rent is paid and the property undamaged, it can be hard to get people to pick up the toys or clothes of the floor.
Maybe they want to stay on long term and are hoping for an investor purchase. Then a quick tidy up will hold them in good stead when investors come through the open.
Maybe they see the process as an ordeal and need a little incentive to feel something is in it for them. This could be a small rent reduction for the sale period, or even coffee vouchers/movie tickets to alleviate any inconvenience from being asked to leave their home for an hour or so. It’s a small investment to help boost any offers northbound.
But hey let’s make sure we are seeing results before handing out any cash or gift vouchers. You need an agent who can show understanding of the tenants situation and also one whose making sure you are getting the desired result.
When an agent and the tenants work well together not only will your opens and scheduled private inspections go smoothly, but you might also gain agreement for those last minute inspections some buyers may need who cannot make the opens. The key goal being to help boost those offers and achieve a sale at the best possible price.
Let’s talk about you. Yes it can be tricky but that doesn’t have to mean your returns will be effected.
a) A place presented in a average state most likely won’t attract top dollar. Employ a great agent to work with your tenants to have your property presented as a great investment property and one who can guide potential owner occupiers eyes past the current tenancy to create a vision for them of their new home.
b) You might choose to ride the lease out and sell it empty but this means no rent coming in right! Maybe a cash injection to refresh the paint and flooring is required. Yes most would say you will attract a higher price in this case however is option b) is any better the a) ?
All of this means you need to choose to sell your investment property at the right time for you, capture great advice and secure the services of an agent and solicitor you can trust.
We know that can be us and hope that you feel the same one day.