Selling an investment property involves more than choosing a method of sale. Your tenants are living in the home, and their agreement and rights need to be considered alongside your plans. Early conversations with your salesperson, property manager and lawyer can help you plan a sale that respects everyone involved.
Review the tenancy agreement, whether the tenancy is periodic or fixed term, and any management agreement. Discuss your preferred timing and whether you intend to market the property with the tenancy continuing. Selling does not automatically end a tenancy. The options and notice requirements depend on the agreement and circumstances, so get advice before making commitments about vacant possession.
Landlords must tell tenants in writing when the property is put on the market. An early, respectful discussion can also help explain what happens next, who will be in touch and how viewings might be arranged. Your property manager and salesperson can coordinate communication with you and your tenants.
Ask your tenants for permission before entering to take photographs or showing prospective buyers and relevant professionals through the home. Tenants may set reasonable conditions for access and can refuse open homes or auctions at the property; they may agree to viewings by appointment. Discuss a practical schedule, personal belongings and privacy, and record what has been agreed. For current details see Tenancy Services: selling a rental property.
A buyer may wish to continue renting the property to the existing tenants. In that situation the buyer becomes the new landlord and the tenancy agreement continues. Plan the handover of the agreement, relevant records, contact details and any bond record, taking care with personal information. Your lawyer and property manager can explain the steps that apply to your transaction.
Do not assume that a sale automatically gives you a right to end the tenancy or promise a vacant property before checking the rules. The position differs for periodic and fixed-term tenancies, and the sale agreement and its conditions matter. Ask your lawyer for advice before agreeing to settlement and possession dates, and check the current Tenancy Services guidance.
Talk through an appraisal, the likely buyer audience, presentation, marketing, the tenancy information a buyer needs and how enquiry and viewings will be handled. Allow time for communication, any agreed access and professional advice. An appraisal is an estimate and does not guarantee a sale price.
For a conversation about your property, contact property manager Penny Shanks or Stephanie Jones, call 03 249 8989 or use the enquiry form below. You can also read our guide to selling in Te Anau and landlord’s guide.
This information is general and is not legal advice. Tenancy requirements can change; seek advice on your situation.