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SELLING AN INVESTMENT PROPERTY WITH TENANTS IN PLACE · The Real Estate Show

• 0:00
  Speaker 1: Well can. We've got friends of ours who have a
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  Speaker 1: little investment property and they're planning to sell it. It
• 0:05
  Speaker 1: has tenants in place, and that's all been going along well.
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  Speaker 1: But that's just the decision that they've made, I.
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  Speaker 2: Suppose with everything that's going on right exactly.
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  Speaker 1: And some of the things they're wondering is should they
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  Speaker 1: sell it with the tenants in place or make sure
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  Speaker 1: it's a vacant space for when they market it and
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  Speaker 1: sell it. But then you also need ideally someone still
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  Speaker 1: in there to have the rent to help cover the
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  Speaker 1: mortgage because that doesn't go away. So there's all these
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  Speaker 1: different factors that they're considering, So I thought let's try
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  Speaker 1: and nut some of that out. And Hannah gill is
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  Speaker 1: director at Podium Property Management and a REACT board member,
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  Speaker 1: joins us. Now, Hannah, good morning.
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  Speaker 3: Good morning guys. Thanks for having you back on the show.
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  Speaker 1: Yes, so you love having you on. Now, Look, Canna,
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  Speaker 1: we know that properly owners do have the right to
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  Speaker 1: sell at any time. What are some of the things
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  Speaker 1: that you need to know when considering your tenants if
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  Speaker 1: this is a position that you're in.
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  Speaker 3: Yeah, absolutely, I think selling during a fixed term tenancy
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  Speaker 3: can actually give your tenant additional right. So, for example,
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  Speaker 3: if the properties offered for sale within the first six
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  Speaker 3: months of that tenancy agreement and that sale wasn't disclosed
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  Speaker 3: to the tenants before they entered into the agreement, or
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  Speaker 3: if the tenants subjected to like ongoing open homes over
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  Speaker 3: an extended period, the tenant can actually terminate their tendency
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  Speaker 3: just b getting fourteen days notice and then not in
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  Speaker 3: breach of that fixed term agreement.
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  Speaker 2: Okay. And so then you mentioned open homes there, because
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  Speaker 2: I would imagine that would be a bit tricky, you know,
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  Speaker 2: moving everyone around and making sure that everyone is okay,
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  Speaker 2: because you want to also keep tenants in mind as right,
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  Speaker 2: Like that's really important. So how's it best to organize
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  Speaker 2: open homes and inspections?
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  Speaker 3: Yeah, I think they're legislation refers to reason blackccess, but
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  Speaker 3: I'd always recommend it comes down just to reflect respectful
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  Speaker 3: communication of flexibility, Like we want to build a good
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  Speaker 3: relationships with our tenants and that's going to give us
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  Speaker 3: the best chance to get reads black sets. So been
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  Speaker 3: really respectful in the way that we approach that I.
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  Speaker 1: Can imagine and you would have seen this more than
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  Speaker 1: anyone that there'd be many situations where that potentially falls
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  Speaker 1: apart because you know, tenants feel like they're being put
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  Speaker 1: out and I get that, so they don't have the
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  Speaker 1: same incentive as the seller to have the property in
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  Speaker 1: tip top shape. So I imagine that can go pair shape sometimes.
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  Speaker 3: Hannah, Yeah, absolutely, And that is probably the biggest mistake
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  Speaker 3: we see people making is the owners and also potential
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  Speaker 3: buyers expectations about the presentation of the property. We have
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  Speaker 3: to remember when a property is tenanted, it's not a
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  Speaker 3: styled house, it's a lived in and loved home, and
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  Speaker 3: we just have to have that expectation management and also
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  Speaker 3: be respectful of that at someone's home.
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  Speaker 1: And what if someone who has an investment property is
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  Speaker 1: selling and there's tenants in there, and if someone comes
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  Speaker 1: along wants to buy it and they're an investor, can
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  Speaker 1: that tenancy carry over to the new person and what
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  Speaker 1: does that look like?
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  Speaker 3: Yeah, a great question. If there is a fixed term
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  Speaker 3: tenancy in place, the buyer inherits that tendency agreement with
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  Speaker 3: the purchase of the property. We're not seeing as many
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  Speaker 3: investors in the market at the moment with all the
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  Speaker 3: changes to the budget, but certainly any investors. That's a
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  Speaker 3: great purchase option for them because it means they're not
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  Speaker 3: having any vacancy. They've already got tenants in placete. Yeah.
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  Speaker 1: Absolutely. And just lastly, Hannah, what's the number one piece
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  Speaker 1: of advice you'd say to people who are looking to
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  Speaker 1: sell an investment property that is occupied.
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  Speaker 3: Honestly, I'd encourage them to wait where possible, wait until
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  Speaker 3: the end of the six term, work closely with your
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  Speaker 3: property manager and or your tenants, and get the best
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  Speaker 3: outcome for everyone involved. Yep.
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  Speaker 1: Absolutely, And like you say, you know, establishing and maintaining
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  Speaker 1: those positive relationships is really important. Thank you so much
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  Speaker 1: for your time Hannah this morning. We really appreciate it.
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  Speaker 3: Thanks guys.
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  Speaker 1: Okay, have a good day. Hannah Gill, who's director Podium
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  Speaker 1: Property Management, excuse me and REACT board member