Should You Sell With Vacant Possession Or With A Tenant Still In Place?

kicked-out of home in seven hillsYou have decided, for whatever reason, that you need to sell your invest­ment prop­erty. Now comes the time to decide if you should sell with vacant pos­ses­sion or with a ten­ant still in place?

Should you sell with vacant pos­ses­sion or with a ten­ant still in place? We look at the advant­ages and dis­ad­vant­ages of both scenarios.

Vacant Pos­ses­sion

This means that you put your house on the mar­ket with no one liv­ing in it, and with all fur­niture and remov­able items removed.

The Advant­ages Include:

  • The prop­erty will be attract­ive to owner occu­pi­ers and, depend­ing on the type of prop­erty it is and where it is, this may open up the mar­ket to more buyers.
  • Any people look­ing will be able to more clearly visu­al­ise their own fur­niture in the property.
  • Inter­ested buy­ers know that they can move in as soon as set­tle­ment occurs without hav­ing to move an exist­ing ten­ant out. Inspec­tions can occur as soon as a poten­tial buy­ers wants them to.

The Dis­ad­vant­ages Include:

  • Poten­tial investors may think it is untenantable.
  • You will have to have a period of time without income, which may cause fin­an­cial strain to you, espe­cially if the prop­erty sub­sequently sits on the mar­ket for a long time.

Occu­pied

This means that you either stay in the prop­erty your­self in the case of an owner-occupied prop­erty, or you place the house on the mar­ket while there is still a ten­ant in place.

The Advant­ages Include:

  • Poten­tial investors are often hap­pier know­ing a ten­ant has been secured. A house can feel a lot more wel­com­ing if there are people liv­ing in it.

The Dis­ad­vant­ages Include:

  • The ten­ant may make it dif­fi­cult for inspec­tions to take place, although only 24 hours notice needs to be given.
  • A ten­ant may not be keep­ing the prop­erty tidy and it may not look as attract­ive. Owner-occupiers may be pre­cluded, espe­cially if there is a long lease in place.

Decid­ing Which Way To Go?

Find out who is most likely to buy your prop­erty – is it more attract­ive to owner-occupiers or ten­ants? Then work out how long you can expect the prop­erty to be on the mar­ket (real estate web­sites provide stat­ist­ical data about the length of time prop­er­ties in areas stay unsold) and how much dis­count­ing is needed for them to sell.

Know­ing this will help you to estab­lish if your indi­vidual prop­erty is bet­ter made avail­able with vacant pos­ses­sion, or occu­pied, and whether you can afford to leave it unten­an­ted for long enough to get it sold.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia