Selling a Rental Property – Keeping it Tenanted or Vacant?
Making right impression is paramount when it comes to selling your home. But what happens when you don’t live in the property you own, and it is tenanted? Do you keep it tenanted or have it vacant prior to selling?
Often, home-sellers look at the loss of rental income while the property is on the market as the driver for this decision, but this could be false economy. Owners could very well lose more money than the rental income if the property is put on the market with current tenants who don’t look after the property, or perhaps have a grudge about the property being sold and them losing a place to live.
This is a tricky scenario for both the owner and tenant and so it must be handled carefully. To help, we have put together some things to consider…
Keeping it tenanted
If you have a tenant who does take great care of your property, there is always the option to get a stylist over before each open house to add decor to your property to up the ante and set a tone.
Partial styling has the ability to enrich a place, especially if the tenant agrees to keep it in good condition. However, if the tenant has any issues or access is hard, this can result in increased cost overtime. Therefore, make sure if you commit to partial styling that the tenant is taking care of the property as the hire contract and liability for damage will fall to the owner, not the renter.
If the tenants are great and present the property well and the target market for your house is other investors, it can be a benefit to have the tenants still living in the property. However, if they have a substantial time left on their lease and the target market are homeowners the opposite can occur.
Keeping it vacant
Sometimes you may feel as though the property has not been as well looked after by the tenant or you and your sales agent may simply have difficulties with gaining access to the property if it is tenanted.
If either of these are the case, consider vacating the place to do a full stage.
The benefits of a complete styling of the property can really help the prospective owners to see either themselves or future tenants in the place. Without the worries of an upset tenant, or one who leaves the property unclean and not styled to perfection, having the property vacant and styled in full may be a short-term rental loss of income, but may in turn have the ability to increase your property’s sale price.
Final words of advice…
Always lean toward selling without the tenants unless they are exceptional and are open to advice on what to put away while the opens are on. It’s often a big ask for the tenant as they receive no benefit in doing what’s best for the landlord. Also, make sure that you are compliant with any legislation with this jurisdiction. It is important that you follow the rules! This may mean that these questions and decisions are considered well in advance.
Make sure you are considering all aspects while trying to sell your tenanted property to get the best outcome!
If you need further advice, or would like to speak further about styling your existing tenant home for sale, please contact us via our webpage contact form.