23 Dec 2016

Could Your Tenants Jeopardise Your Property Sale?

Selling a tenanted property carries some potential to sabotage your sale compared to selling a vacant property.

Let’s face it most tenants facing the sale of their ‘home’ are likely to be less than happy about the process. Many have experienced this same situation more than once. An unhappy tenant can cause some serious grief for you and your agent, potentially hampering the sale process and impacting on your profit.

So what can you as the owner and your chosen agent do to make the process as painless and hassle free as possible, for everyone involved?

Firstly and most importantly remember that respect is a two way street. Yes it’s your property, but your tenants pay for the right to their peaceful enjoyment of their home. Open communication is key, abide by legislative requirements, notice periods and be reasonable about the number of inspections.


Let’s look at the best practice for selling a property with a tenant in place:



If possible, meet with the tenants and your sales agent together, so you can arrive at a mutually acceptable plan for the sale process. If not in person then think about a Skype meeting – they will appreciate you making the effort.

Consider offering the property to the tenants first, you’d be surprised how often a tenant loves the home they live in enough to buy it if they are in a position to do so. Similarly offer it to the neighbours next, that has resulted in a sale more times than I can count.

Remember to check your state or territory’s laws for the notice period before inspections, if you are not familiar with the legislation speak with your property manager.

In most cases, tenants must be given 24 hours written notice, and breaking that agreement could get them offside quickly.



While you might be paying the mortgage, the property is your tenant’s home. 

Having to clean the house and groom gardens for every inspection can wear thin quickly, and it’s important that the house looks as tidy as possible when prospective buyers walk through.

Here are some incentives you could offer your tenants:

  • A discount in rent during the sales process

  • A free week’s rent when the house is sold to help offset moving costs

  • A small fee for every open house they have to prepare for

  • A letter of recommendation for their next rental if required

While you can ask tenants to step out during inspections, there is no legal requirement for them to do so. This is even more important where there are pets in the household who may react badly to strangers in the home. Setting fixed viewing appointments can help your tenant to feel less like they have lost control of the situation and allow them to plan around children and pets.

The longer a sale takes the less likely your tenants are to be inclined to co-operate. Sweetening the deal might be just the incentive they need to make themselves scarce while buyers walk through. Remind them that the buyer may well be their next landlord and that they should treat each inspection is a potential opportunity to impress.



Hire a cleaner and a garden maintenance person to tidy up the property prior to taking marketing photos.

It’s one less chore for the tenant and a great way to thank them for their cooperation. Better still, you’ll be assured of the best photos for your sale.

The cost for these services are a tax deductible investment, this one is a no-brainer.

Also, ask your agent to open curtains, blinds and windows and turn on lights before inspections, so the property presents as airy, fresh and open as possible – it’s a simple but effective step that is often overlooked.



If your tenants are uncooperative, it may be better to offer them an early release from the tenancy. Some tenants prefer to choose the timing of their own move over the uncertainty and disruption of the sale process.

You will be missing out on the rental income, but you might be able to sell for a higher price with the property untenanted. This can also mean that you increase the buyer enquiry level as your property will appeal to owner-occupiers as well as investors.

For larger or high end properties consider staging the home yourself, or having virtual furniture added by the professional photographer. This is an effective tool for increasing your final sales price. 

Obviously, asking your tenants to leave is entirely dependent on your financial position.

Any lost income dips directly into your overall profits, so weigh the decision up carefully; this is a drastic move and is really only the last resort if all other options are exhausted. Speak to your agent about average days on market for properties in your area, taking into consideration tenanted Vs properties available for vacant possession.

To avoid reaching this point, be respectful of your tenant.

Be sure to stay in close contact with your property manager to keep the lines of communication clear.

Seek first to understand and then to be understood.

Your tenants are facing the uncertainty of potentially having to find a new home. This can be a very costly exercise with professional moving companies, cleaning, electricity and communications connections etc. running easily into $2000-$3000 for a residential move. So anything you can do to reassure and support them is going to benefit your overall relationship and encourage them to cooperate during the sales process.


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