What happens if I want to sell my Property? A Guide for Landlords with Tenants

As a landlord, there may come a time when you decide to sell your rental property. Whether you are looking to move to a different location, cash out on an investment, or pursue other opportunities, selling a rental property with tenants in place can raise some important questions. This process can be a little more complex than selling a property that is vacant, but with the right steps and guidance, it can be done smoothly. Here’s everything you need to know about selling a property with tenants.

1. Legal Requirement to Inform Tenants

First and foremost, it’s important to understand the legal obligations involved when selling a property with tenants. According to New Zealand law, you are required to inform your tenants that the property is going on the market. This ensures that tenants are aware and can plan for the potential changes ahead.

Your Property Manager can take care of this for you. We will notify your tenants properly, so you can focus on the next steps in the sales process.

2. The Notice Period for Tenants

Once the property is sold, things start to get more specific. If your property is under a Periodic Tenancy, and a sale agreement is unconditional (meaning the sale has gone through), tenants must be given 90 days’ notice to vacate the property. This notice period is required under New Zealand’s Residential Tenancies Act and ensures that tenants have adequate time to find a new place to live.

At i-Rentals Property Management, we can manage this process for you. We will ensure that the necessary notices are served, so you don’t have to worry about the legalities or the timing. However, we do recommend allowing extra time for us to prepare and serve the appropriate notices properly, ensuring compliance with the law.

3. Choosing a Sales Agent

Working with a professional real estate agent ensures your property is marketed effectively to the right buyers. They will be able to handle viewings, negotiations, and the sale process, so you can focus on managing the transition for your tenants.

4. Handling Tenant Viewings

If you’re selling a property with tenants, you must be mindful of how viewings are scheduled. Tenants have the right to privacy and must be given notice before any viewings take place. Typically, the required notice for access to the property for viewings is 48 hours. We can help coordinate these viewings with your tenants, ensuring that they are notified properly and that access is arranged in a way that minimizes disruption to their daily lives.

It's crucial to have open communication with your tenants throughout this process, to ensure they are comfortable with the sale and to avoid any tension. A property management company like i-Rentals can help smooth over these discussions and ensure the process goes as smoothly as possible.

5. What Happens if the Property is Sold to an Investor?

In some cases, the property you are selling may be purchased by another investor who plans to keep your tenants in place. This can be a positive outcome for everyone involved, as your tenants can continue living in the property without having to move.

However, even if the new owner intends to keep the tenants, the sale process still needs to be handled with care. Your tenants must be formally notified of the change in ownership, and their tenancy agreement may be transferred to the new owner.

6. Ending a Fixed-Term Tenancy

If your tenants are on a fixed-term tenancy agreement and the property is sold, the new owner has the option to continue the lease with the current tenants or offer them a new agreement. In either case, the tenants have the right to stay until the end of the fixed term, provided they are meeting their obligations under the lease. However, if the new owner chooses not to renew the agreement, they must give proper notice according to the Residential Tenancies Act.

7. How i-Rentals Property Management Can Help

At i-Rentals Property Management, we understand that selling a property with tenants in place can be complex and stressful. That’s why we’re here to support you every step of the way. Here’s how we can help:

• Notifying tenants: We will inform your tenants about the property sale in a timely and professional manner.
• Serving notices: We handle the legal requirements, including giving tenants proper notice to vacate when necessary, ensuring compliance with all regulations.
• Coordinating viewings: We can arrange property viewings at times that suit your tenants, making the process as smooth as possible.
• Referring trusted sales agents: Although we don’t handle property sales, we can refer you to reputable real estate agents with experience in selling tenanted properties.
• Managing tenant relations: We help maintain good relationships with your tenants throughout the process, minimizing potential disruptions and ensuring compliance with all legal requirements.

8. Conclusion: Selling with Tenants Doesn’t Have to Be Complicated

Selling a property with tenants can be challenging, but with the right guidance and support, it can also be a smooth and straightforward process. At i-Rentals Property Management, we’re here to handle the complexities, so you can focus on making your next move.

If you’re considering selling your rental property, don’t hesitate to reach out to us. We’re happy to provide advice, assist with the process, and refer you to trusted sales agents who will market your property effectively. We’re here to make sure everything goes according to plan, from informing tenants to serving notices and everything in between.

www.i-rentals.co.nz

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