30 Mar 2016
If you’re thinking of selling your rental property then you’ve no doubt been asking the question – “Should I keep my tenants on or wait for their lease to expire before selling?”
Like all things in property there’s no one size fits all answer but there are pros and cons of keeping your tenants in place while selling.
First let’s take a look at the pros of keeping the tenants on:
- Rental income will still be coming in while the property is on the market.
- If the tenants are neat and tidy then the property may present better with the tenant’s furniture inside, as opposed to being left empty.
- If the property is likely to appeal to investors then having good tenants already in place can be a drawcard.
The potential cons of keeping the tenants on could include:
- You will need to work with the tenants when coordinating inspections and open homes.
- You have no control over how the property is presented. While most tenants make the effort to clean up and present a property to its best for the owner, this isn’t always the case.
- If a potential buyer is looking to live in the property, having tenants with a long lease can be a deterrent.
The best advice we can give is to go and have a long chat to your property manager or real estate agent. Whether or not it is better to sell with tenants will depend on a number of factors, including whether or not the property will appeal to owner-occupiers or investors, and also on your own personal circumstances.
If you would like any advice about selling your rental property then please don’t hesitate to get in touch with the team at Arbee Real Estate.