Selling a Tenanted Property

Selling a rental property involves decisions about the sale, the tenancy and the people who call the property home. The right approach depends on the tenancy agreement, the buyer’s plans and the sale terms. Get current advice before setting dates or promising vacant possession.

If you decide to put the property on the market, tell your tenant in writing. Explain the likely process and invite a practical conversation about access. The tenancy continues according to its existing terms unless the parties lawfully agree otherwise or the tenancy ends under the applicable rules.

You must get the tenant’s permission before entering to take photographs or show the home to potential buyers or property professionals. A tenant can refuse photographs of personal possessions. Tenants cannot unreasonably refuse access, but they may set reasonable conditions. These can include limits on days and times, appointment-only viewings, or refusing open homes and auctions at the property. A tenant may ask to be present during viewings. Put any agreed access schedule in writing.

Do not assume that giving notice to attend is enough. Check the current Tenancy Services guidance and the tenancy agreement before arranging access. If you and the tenant discuss a temporary rent reduction in exchange for access, put any agreed terms in writing; it is not automatic.

A buyer may purchase the property with the tenancy continuing and become the new landlord. The tenancy agreement’s terms continue after the sale, and landlord and bond records need to be updated.

If a buyer requires vacant possession, the sale and tenancy timelines must be considered together. The notice rules differ by tenancy type and by the reason and timing for ending it. A fixed-term tenancy cannot simply be ended early because the property has sold. A periodic tenancy may require a particular notice period in some sale scenarios. Confirm the current rules with Tenancy Services or an independent tenancy adviser before agreeing to settlement dates or telling a tenant to leave.

Before marketing, review the tenancy agreement, sale conditions, likely buyer groups and the tenant’s practical needs. Agree a realistic access plan. Discuss with your lawyer how the tenancy should be described in the sale documents and what information a buyer will need. If vacant possession is important, obtain tenancy advice early so that timing is not assumed.

There is no guaranteed price outcome from selling with vacant possession, staging a home or offering an access arrangement. A suitable plan depends on the property, the buyer and the parties’ agreement.

When a property is sold with the tenancy in place, the new landlord must provide the tenant with their name, contact details, address for service and rent-payment information. The landlord and buyer should arrange the required tenancy and bond-record updates.

Rules can change and individual agreements differ. Read Tenancy Services’ current guide to selling a rental property and obtain independent advice for your circumstances. This page is general information, not legal advice.

Contact Ray White Richmond to discuss an appraisal and possible sale process for your property. An appraisal is an opinion based on available information and is not a formal valuation or a promise of a sale price.