Selling an investment property can be a hazardous journey but if approached properly it can usually go a lot smoother. Getting the real estate person onside does help too. A real estate agent who does not know the laws regarding access can cause all sorts of problems and where there are problems there is usually a lower price for the property.
Here are some more tips for realising the best price on an investment property that is tenanted.
1. Plan the sale – in other words ensure that the property manager does an inspection of the property before putting it on the market to ensure that there are no maintenance issues to be rectified– inspections are meant to be 3 months apart so remember the managers cannot just go back in after 6 weeks unless there is a justified reason
2. Is it better to sell a property with tenants or without – most would say without tenants but I suggest a property owner only considers that if they are meeting the market on price – in a fast moving market this would probably be a good strategy, but in a slow moving market it could mean the property is sitting vacant for 3 months or more.
a. One would need to weigh up then, the price being asked
b. Would they make sufficient in a better sale price, by having a clean house that can be inspected at any time, to cover the lack of income
c. Empty houses don’t look that good – is it work renting furniture to make the house look lived in
These decisions could be quite different for houses in a different price bracket – in the cheaper house it would probably be best to have it tenanted, but if it is a high dollar house the probably of a better price would most likely mean it is worth having it vacant and tidy.
3. If the house is going to be tenanted then it is a good idea to get the tenants onside and offering to do a house clean and a garden maintenance job may be appreciated. But these may have to be put to the tenants tactfully. First impressions for buyers count immensely so it would be prudent to have the lawns done each week at your cost until the property is sold.
4. Organising open homes is often a better way to have inspections – or say 2 or 3 set inspection times a week and then the tenants do not feel like they are on show every day.
Having the tenants onside during a property sale can make a lot of difference to the bottom line and is worth the effort. So many investors do not realise this and it does cost them dearly.