To sell with/without tenant

[fasteddie]

I am thinking of selling an investment property.

One tenant is moving out (end of lease) and I am also thinking or selling it very soon.

Should I sell it with a new tenant and a fresh lease agreement or sell it empty with no tenant (just in case someone would like to live in it) ?

I am aware that obviously I will loose income if untenanted however it might be easier to sell and bring people through. It might be also more attractive if someone wants to live in it.

Any suggestions please.

 

[travelbug]

If you have a long lease you may limit yourself rto investors.
who is more likely to buy it?

Also the tenant may not be agreeable to letting people in.

If you think it weill sell fast maybe leave it empty. But as you mentioned, it could get expensive.

 

[thatbum]

Advertise it for rent at a cheap-ish rate but periodic lease?

Probably be up front with your possible sale plans to any prospective tenants, but you can explain that they would get at least 30 days notice, possibly more.

 

[vaughan]

Decide whether the property will sell better to an investor (who wants an existing tenant but ONLY if they are renting at good market rate) or an owner-occupier, who wants it vacant so they can move in.

 

[Fourex]

My 2 cents,

Start talking to agents and get ready to list the property prior to the tenant moving out.

Allow an amount of time to leave the dwelling empty to allow for easy inspection that best suits your cash flow.

Advise agent you will intend for them to have X amount of time to sell while vacant at X time you will let the property again.

Two choices for that. You could get around the issue is for sale by discounting the rent however an investor will be looking for a higher rent return and I would be reluctant to discount the rent (you might be to keep the market rent by finding someone who only needs a short stay arrangement).

Advise the agent if not sold by X timeframe will take off the market to obtain a tenant with a view at placing back on the market in the near future.

Depending on the type of property you have I would expect an agent would have a good idea within 4 - 6 weeks if you will have a quick or a long sale time period on your hands.

Cheers,

Fourex.

 

[Logica]

If you have a long lease you may limit yourself rto investors.
who is more likely to buy it?

Also the tenant may not be agreeable to letting people in.

If you think it weill sell fast maybe leave it empty. But as you mentioned, it could get expensive.

I agree with this. You really don't know who will be interested to buy it and if you sign a new lease you could limit yourself. There are ways to induce the tenant to agree to terminate a lease (by mutual agreement) but it will cost you. Also, tenants can be DIFFICULT when trying to arrange open inspections. If you can afford it, I would try and sell it empty. If your asking price is realistic that is...

Good luck!

 

[Qman]

Depending on where the property is located better to sell vacant, give the place a good freshen up and hire furniture.

 

[Andrew_A]

Almost always if you are serious about selling to the current market then have tenants out of the place.

Do the basics right, professional clean and photos, appropriate marketing and copy for adds, consider home staging.

Factoring in the 6 weeks of lost rent against the harm that most tenants do by presenting a property poorly (The terrible things we have all seen as buyers!) and it's hard to make a case for the periodic or permanent lease if you are priced appropriately to sell.

 

[bcole2012]

Almost always if you are serious about selling to the current market then have tenants out of the place.

Do the basics right, professional clean and photos, appropriate marketing and copy for adds, consider home staging.

Factoring in the 6 weeks of lost rent against the harm that most tenants do by presenting a property poorly (The terrible things we have all seen as buyers!) and it's hard to make a case for the periodic or permanent lease if you are priced appropriately to sell.

Totally agree, and have just done this... fingers crossed for a good result with our IP!

 

[mandimoo]

I would say tenants out. If you had a decent lease in place only investors will be interested in buying the property and investors are interested in bargaining. It depends on the property as well, if its only suited to investors, doesnt tug at heart strings for owner occupiers then why bother trying to sell to them I suppose. If you get messy or difficult tenants or tenants with pets it will make it harder for you to ensure that the place is presentable and welcoming for inspections etc.
When I sell mine it will be at the end of a lease period And when I sell my PPOR it will be after I have shipped out the husband and 3 kids!

 

[aprilkeys]

Well, this is a commercial decision for you to make – some Agents will say that it is much easier to sell a property without tenants in it, because the law requires the Seller/Agent to give notice whenever they want to bring through a prospective buyer. Also, if your tenants are not tidy or co-operative, they may hinder the sale of your property.

 

[Jtkumnick]

1000 votes for empty.

So much easier to sell- usually for much better prices, no hassle.
if worried about losing investors:
1. provide a copy of the last lease to agent to show what it did rent for
2. tell buyers its only empty by owners choice to allow homeowners to inspect
3. if investor buys it, allow them to advertise a tenant as soon as contract goes unconditional in all other aspects, with the tenant moving in the day after settlement. peace of mind for investor.

a good agent will facilitate this.

Homeowners tend to buy with emotion, and will pay more. as a general rule.