If the property you are selling currently has tenants in it, there are a few things you will need to do. The information outlined below is a suggestion only and you should seek further advice from your rental manager and the Residential Tenancies Authority. Both should be extremely helpful resources for you.
Before you start:
We’d like to first say that it is advised to be very professional and kind to your tenants during the sale process. Tenants can very easily make selling extremely painful if they are unhappy.
1 – Check your rental agreement date
First step is to check the date of your rental agreement with the tenant. If the tenant entered the agreement (new or renewed) less than 2 months ago, they are allowed to leave the property with only 2 weeks notice should you tell them of your intention to sell. So, if you want to keep the tenants, ensure their lease agreement began more than two months ago.
2 – Advise your rental manager of your intent to sell
Second step is to advise your rental manager of your intention to sell the property. The rental manager will then provide the tenant with the “RTA Form 10 Lessor’s intention to sell”. This form will let your tenants know that you intend to sell the property and how you plan to market the property.
It is recommended that you explain to the tenants if and when you plan to do group open homes or an auction at the time this form is delivered to the tenants. Remember, open homes and public auction may only take place if your tenant agrees with it in writing or in an email. The “RTA Form 10” must be provided before or at the same time as a “RTA Form 9 Entry Notice”.
3 – Notice is needed AT LEAST 24 hours before each inspection
Each time you want to enter the property to show through a prospective buyer, an “RTA Form 9 Entry Notice” must be filled out and delivered to the tenant AND the rental manager at least 24 hours before the inspection. Hand delivery of the “RTA Form 9 Entry Notice” is recommended to ensure the tenant is aware with at least 24 hours’ notice. If the tenant requests it, you must show written evidence of your inspection appointment with a potential buyer before entry can take place.
Tenants are not required by law to be absent from a property for inspections (whether they be private inspections or open homes).
4 – Be mindful with your property photos
No photos or images showing the tenant’s possessions can be used in advertising the property on Airlisting or the large listings sites, unless your tenants agree in writing or email.
5 – Once sold…
Once the property is sold, the tenants must be given a letter advising them of the new property owner, the new owner’s details and where to pay rent.
Have you sold a tenanted property before? Have you been a tenant while the home you’re living in changed owners? Tell us about your experiences below.