Selling a Northern Beaches investment property with or without tenants?

When selling an investment property on Sydney's Northern Beaches, one of the key decisions is whether to keep tenants in place or sell the home as vacant possession. 

The right choice depends on various factors, including market conditions, buyer demand, and the terms of the existing rental lease. Understanding the advantages and drawbacks of each option can help you make an informed decision.

Speaking with your real estate advisor ensures you get timely advice tailored to your circumstances. Market conditions can shift, and what works for one landlord may not be ideal for another. Don't try to work it all out alone – that's what we're here for: to provide guidance and help you make the best decision for your investment property.

Selling with tenants in place

Deciding to sell a rental property with existing tenants in place can be a practical choice for some home sellers, particularly those targeting property investors. However, it also comes with its own set of challenges that may impact the sales process and buyer interest. Weighing the benefits and drawbacks can help determine if this is the right strategy for your sale.

Pros:

• Appealing to investors – Home buyers looking for a rental income stream may find a tenanted property attractive.
• No loss of rental income – Rent continues to be collected throughout the sales process, reducing financial strain.
• Demonstrates rental demand – The presence of reliable tenants shows the property’s viability as an investment.

Cons:

• Limited buyer pool – Owner-occupiers may not be interested if they must wait for the lease to expire.
• Tenant cooperation – Arranging inspections and maintaining the home’s presentation can be challenging.
• Lease conditions may deter buyers – Fixed-term leases lock buyers into existing terms, which may not align with their investment goals.

Selling without tenants (vacant possession)

Choosing to sell your investment property without tenants can provide greater flexibility and appeal to a wider range of buyers. This approach allows for better property presentation and makes the home more accessible for inspections, but it also means a potential loss of rental income during the sales process. Weighing these factors can help determine if selling with vacant possession is the right choice for your situation.

Pros:

• Opens the market to more buyers – Both property investors and owner-occupiers can be considered.
• Easier to style and present – A well-staged or empty home can create a stronger emotional connection with buyers.
• More flexibility in timing – No need to work around tenant availability for open homes or settlement timelines.

Cons:

• Loss of rental income – If the property sits on the real estate market for an extended period, costs can add up.
• Potential for longer selling times – Some property investors may prefer a tenanted property to avoid vacancy periods.
• Extra preparation costs – Cleaning, minor repairs, and staging may be necessary to attract buyers.

Key considerations before making your decision

Before deciding whether to sell your investment property with or without tenants, it's important to assess several key factors. The nature of your lease, current market trends, and how cooperative your tenants are can all influence the success of your sale. Understanding these elements can help you determine the most strategic approach for your situation.

• Lease type and length – If the lease is expiring soon, waiting for the property to be vacant might be worth considering.
• Market conditions – A strong investor market may make selling with tenants an advantage, while a buyer-heavy market might favour vacant properties.
• Tenant cooperation – If tenants are willing to accommodate inspections and keep the property presentable, selling with them in place can be more feasible.

What’s right for your situation?

Every investment property is different, and the best approach depends on your goals and market conditions. Weigh up your priorities — whether it’s maximising buyer interest, minimising financial loss, or ensuring a smooth home sales process.

Talking with a real estate professional from our team at LJ Hooker Mona Vale can help determine the best strategy for your property. Whether you're selling a Sydney Upper Northern Beaches home, a Pittwater property, or another investment in a nearby area, our expertise can guide you through the process.