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  • Profile photo of dtrain28dtrain28
    Participant
    @dtrain28
    Join Date: 2015
    Post Count: 27

    Hi Guys,

    I’m looking at selling my IP (Mt Barker SA) due to a change in circumstances. Property is cash flow positive ($325 weekly rent) and value of the property is approx. $310,000 to $320,000.

    Just wanting some advice regarding selling it.
    Should I try and sell it currently tenanted? or wait till the lease is up do some touch ups and then put in on the market? my worry is how long it would potentially sit on the market & therefore not be bringing in any rent.

    Cheers,

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    It would depend on the type of property – is it focused more towards owner occupiers or investors? The market there isn’t moving very strongly as there’s continual supply, so I would want to go more towards keeping the tenant on – perhaps on periodic so they can vacate if an owner occupier wants to move in.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of dtrain28dtrain28
    Participant
    @dtrain28
    Join Date: 2015
    Post Count: 27

    The property would suit either first home buyers or investors due to good rent return. I am leaning towards keeping the tenant on, however in doing so the advertising photos wouldn’t do the house justice.

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    Just wanting some advice regarding selling it.Should I try and sell it currently tenanted? or wait till the lease is up do some touch ups and then put in on the market? my worry is how long it would potentially sit on the market & therefore not be bringing in any rent.
    Cheers,

    I can’t comment on the local market over there but generally speaking I would prefer to vacate the tenant, do a Reno and thus increase the sale price. If the property won’t sell relatively quickly, then I would consider putting a tenant in on a month to month basis.

    Hope this helps?

    Cheers,
    Ethan

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of dtrain28dtrain28
    Participant
    @dtrain28
    Join Date: 2015
    Post Count: 27

    Bump.

    So I have decided to pull the pin and sell my ‘now’ cash-flow positive property (yep, you may shake your head).

    There is a lease on the property until October 2016. Can I evict the tenant prior to this or at least let them know my intentions and give them the option to move if they can find another property before the lease expires?

    Cheers,

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    Can I evict the tenant prior to this or at least let them know my intentions and give them the option to move if they can find another property before the lease expires?

    Hiya

    You need to give tenant 14 days notice of your intention to list the property for sale.

    You can not evict them if they’re on a lease. If you want to let them go via mutual agreement you can, but they may want compensation for having to go early.

    The new buyer inherits the tenant and the lease as is, but does not inherit the property management agreement.

    Also need to give the tenant appropriate notice for when photographer, home opens / potential buyers and the valuer needs to go through the property.

    I’ve written lots on this topic on other sites.

    Cheers
    Dave

    D.T. | DT Property Management
    http://www.dtproperty.com.au
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    Adelaide Property Management - whole Adelaide metro

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