Selling an investment property while tenants are still living in it is a little different. It can add some challenges, but depending on your goals and the buyers you're aiming at, it can also work in your favour. The first decision is whether to sell it vacant or with the tenants in place.
Selling it vacant
A vacant property is easier to sell in several ways. Inspections, styling, photography and open homes don't have to be arranged around someone else's life, and the home can be presented at its best. The cost is the rent you give up during the campaign and until settlement.
Selling with the tenants in place
Reliable tenants can be a selling point for investors looking for a property that's already earning. A buyer can see the lease, the rent and the tenancy history, which can make the property more attractive in the investment market.
The reality is that not every tenant keeps a home ready for buyers. Many look after a property very well, but everyday living, extra furniture, clutter, pets or simply a lack of styling can make it hard for buyers to see what the home could be.
Vacant and styled usually sells best
If your goal is the highest price, I believe selling the property vacant and having it professionally styled is often the best approach. Presentation drives buyer emotion and competition, and styling lets the photos, the marketing and the inspections make the strongest first impression.
There's no single right answer, though. It depends on your circumstances, your financial goals and the market at the time.
The rules on ending a lease
If you want to sell vacant, the lease decides how and when that can happen. Since 19 May 2025, a NSW landlord needs a valid reason to end a tenancy. Selling with vacant possession is one of the accepted reasons for a periodic lease. A fixed-term lease generally runs its term, so the timing of the sale may need to work around it. Notice periods are set by law, so get the timing right before you set a date for the campaign.
Start with what we already know
If we manage the property, we already know it and the tenants: the condition it's in, how the tenancy has gone, and whether any repairs or presentation work would be worth doing before it goes to market. If it's managed by another agency, we'll work with them.
Looking after the tenants
For tenants, having the home they live in put on the market can feel unsettling, especially once inspections start. Clear communication, respect for their privacy and sensibly arranged inspections keep the stress down and the relationship good, which also helps the home present well. NSW Fair Trading sets out the rules on access for inspections while a rented property is being sold.
Handled carefully, a tenanted sale can still achieve a strong result while looking after everyone involved.
