Selling an investment property is not like selling your home. There are a number of extra considerations investors must make when selling their property to ensure the best result is achieved.
Don’t forget the tenants
Your tenants are the ones paying your mortgage or supplying you with an income every month. While you might be selling the property because of your personal circumstances, it is important to remember that legally your tenants still have rights and this may affect your ability to put the property on the market.
If your tenants are fulfilling the tenancy contract, it is only fair that they enjoy their lives without being driven mad by open houses, inspections and so forth. To ensure the sale goes through smoothly, be open with your tenants about your plans and help keep them on side by offering a variety of incentives. These could include reduced rent, a free week once the sale is agreed, or $10 every time there is an inspection.
Remember: your tenants will be a key part of what potential buyers see when they inspect the property, so keeping your tenants on your side will mean your best foot is put forward when it comes to open homes.
Not consulting the right experts
When it comes to selling an investment property, it is important to consult your team of experts to ensure the sale is in the best interest of your portfolio and long-term investment goals.
Timing is everything as the sale is all about selling at the right time for you. If you need to sell to reduce your outgoings or due to financial stress, be informed first. Consult your accountant or mortgage broker to see if there is another solution to your problem, as a rushed sale could be a costly mistake.
The decision to sell an investment property should not be done lightly and success is all about timing, getting the market right and, when it comes to tenants, respect and courtesy.