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Planning To Sell An Investment Property

Posted by Paul Wilson

Selling an investment property requires a different set of steps than it does when selling a home. There are tenants to be taken into account, loss of income if the property is not tenanted, the state of the property and access to make it ready for the market and then the marketing of the property so that the public can view.

 If Signing Up A New Agreement

 In Queensland for example, a landlord cannot start a new lease or re-let a property and put the property up for sale within the first two months of that new lease. If this does happen the tenant has the right to give a Notice of Intention to Leave with a two week notice.

 But if the landlord has informed the new tenants and given given the them a written notice at the time of signing up a new agreement or re-let, and the tenant accepts this, then the landlord can go ahead and list the property and the tenant has no course for leaving the property due to this reason.

 That is the legal aspect but of course there is the tenant/landlord relationship to consider as well.

 You might say that it is no concern of yours if the tenants have real estate agents coming through before they have even unpacked their boxes, but this disregard for a tenant could well come back and bite you, so to speak.

 When the lifestyle of a tenant is disregarded by a landlord the tenant can consciously or unconsciously have a negative change of attitude towards looking after the property. This is not a good situation if a landlord has all intention of selling.

 Therefore giving some thought to the steps you would take when listing a property will help make the process of the sale of a tenanted property go so much easier, which in the end usually produces a better financial benefit to the owner.

 Tenant notice

 When a tenant exists in a property and the landlord puts the property on the market the tenant must be advised of this by giving a Notice of Lessor’s Intention to Sell Premises.

 Inspections of the property by a salesperson or landlord should only take place after the correct Notice of Entry has been given to the tenant which requires 24 hours notice of the inspection time, which can be stated as a 2 hour inspection time. The 2 hours does mean that an agent can line up several inspections of the property during this time.

 Another point to understand is that when a tenant has signed a lease and the property is sold during that time, the tenant cannot be forced to leave before the end of the tenancy.

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