In short yes, you can sell your investment property at any time, however be sure that you aware of the legislation around selling a property with a tenant in place.
Know Your Place
When a fixed term lease agreement is in place, landlords cannot just make a tenant vacate the property. Tenants are within their right to stay until the end of the lease term. If a property is sold with a lease agreement in place, the new owner will become their new landlord.
Should the tenant decide to leave and the landlord is in agreement to this, there should be written documentation prepared to show both parties have signed and agreed to the terms and an end date to avoid any chaos and confusion.
If you are placing the property in the market prior or within 2 months a tenant signing a tenancy agreement that required notice must be served to the tenant prior to signing the tenancy agreement. Failure to do so may result in the tenant being able to exit their lease agreement with no penalty.
When a tenant is under a periodic agreement, landlords are required to issue a notice to vacate to their tenants. In QLD 4 week’s written notice using a Form 12 is required. This is commonly done once the property is unconditional.
Rules for Showing Buyers Through the Property
Showing a tenanted property to prospective buyers can be a sensitive process that requires consideration to the tenants as not only are you disrupting their living but you are letting strangers into their home. It is best to communicate to your tenants ahead of time and arranging a schedule that would be suitable for you both.
Find out upfront if the tenants have any concerns about allowing prospective buyers through their home, this way they can be addressed early on. Tenants should be disruptive or impact the inspection on purpose. The tenant has the right to remain on the premises during any inspections including any open home inspections.
A Notice of Lessor’s Intention to Sell Premises (Form 10) is to be issued to the tenant if you request entry to show the property to prospective buyers.
During the process, should a conflict arise, the landlord or the tenant can take the matter before their state or territory tribunal for intervention.
For Sale Signage
Placing a ‘For Sale’ sign in front of the property is allowed. Should the tenant not be comfortable with having the sign, they must inform the landlord about it.
Photography and Videography for the Sale
A landlord can take photos and video of the inside of the property to assist with the sale of the premises. The tenant does however have the right to refuse having their personal belongings photographed or videoed. Should the tenant agree to having the personal belongings photographed or videoed for the use of advertising, written consent should be sort to prevent any dispute in the future.
By Anita Genrich