Working with property management and tenants
Once a selling agent has been enlisted to sell a tenanted property, the selling agent notifies the property management group that they have been appointed to sell the property by way of a form and asks for a tenancy agreement.
If there is a body corporate, the owner needs to contact with the body corporate manager to get a copy of the body corporate disclosure statement. This forms part of the selling contract.
The selling agent will then contact the tenants and notify them that they have been appointed to sell the property, and arrange a meeting to sit down and go through the ins and outs of the sales process. This allows the selling agent to explain the need for consent and address/understand any concerns they may have about the process.
The selling agent provide details on what is required – taking photos, open homes, etc.
The selling agent must give them 24 hours notice via a specific form for any entrance to the property.
Ultimately, the selling agent needs to keep the tenants happy, because they need them to clean and look after the house so it presents at its best for sale.
Set time Open homes are better for tenants than multiple entries during the week, as that would probably inconvenience them more.
During open homes and any further inspections, the selling agent will be working to keep the tenants happy for the inconvenience as much as they can.
If you have any questions, please don’t hesitate to call me on 0409 652 271.
What are the costs?
Aside from the usual selling fees – agent, marketing, solicitors, there’s a few things you need to think about.
Are you planning on selling the property empty? You will want to factor in the cost of an empty house. Loss in rental income. For instance, 120 days on the market is over 17 weeks rent that isn’t going to help pay of the mortgage. On a $400/week rental income, that’s over $6000 in rent lost.
Another thing you need to be aware of is the cost of selling an investment property from the taxman. Capital gains tax is something that I’ve found a lot of sellers forget about. For a quick estimate on capital gains tax, I’ve found the use this calculator is quick and simple.