Selling a Property in NSW with Tenants: What You Need to Know

Selling a Property in NSW with Tenants: What You Need to Know

If you’re selling a property in New South Wales (NSW) that has tenants living in it, there are specific rules and processes you need to follow. Whether you’re looking to sell to an investor or a homeowner, understanding tenant rights, notice periods, and your legal obligations will help ensure a smooth sale.Here’s a simple guide on what’s involved when selling a tenanted property in NSW.

Can You Sell a Property While Tenants Are Still Living There?

Yes! You can sell your property while tenants are still in place. However, the rules for showing the property and giving notice will depend on the type of lease they have.

✔ If the lease is periodic (month-to-month) – You can give 30 days’ notice to end the lease once contracts are exchanged.✔ If the lease is fixed-term (e.g., 6 or 12 months) – The tenants can stay until the lease ends unless they agree to leave earlier.

💡 Tip: Some investors prefer buying a tenanted property because it provides instant rental income.

Notifying the Tenants About the Sale

Once you decide to sell, you must inform your tenants in writing. Your real estate agent will also need their cooperation for property inspections.

✔ Written notice is required before any open homes or inspections.✔ Tenants must be given at least 14 days' notice before the first open home.✔ Inspections can only be held twice a week unless the tenant agrees to more.

💡 Tip: Keeping good communication with your tenants can help the process go smoothly and ensure they cooperate during inspections.

What Happens If the Buyer Wants to Move In?

If the new buyer wants to live in the property, they must give the tenants at least 30 days’ notice to vacate after settlement (if the lease is periodic).

If the tenants are on a fixed-term lease, they cannot be forced to leave early unless they agree to move out.

Benefits of Selling with a Tenant in Place

✔ For Investors: Some buyers want a tenanted property because they don’t need to find a new renter after settlement.✔ Rental Income During Sale: You continue earning rental income while your property is on the market.✔ Less Need for Staging: Since someone is already living there, the property looks “lived in,” which can appeal to buyers.

Challenges of Selling a Tenanted Property

🚨 Limited Access for Inspections – Tenants may not always be cooperative with open homes.🚨 Property Presentation – Unlike an owner-occupied home, you have less control over how tidy or well-presented the property looks.🚨 Fewer Buyer Options – Some buyers may not want to wait for the lease to end before moving in.

💡 Tip: If possible, offer incentives to your tenants, such as reduced rent, to encourage cooperation with open homes and inspections.

Final Steps: Settlement & Handing Over the Property

• If the property is sold with tenants staying, the new owner takes over the lease agreement.

• If the tenants are moving out, you must ensure the property is vacated before settlement day.

• Your conveyancer will handle all legal paperwork, lease transfers, and settlement arrangements.
  

Conclusion: Selling a Tenanted Property Doesn’t Have to Be Complicated!

Selling a property with tenants in NSW requires planning, clear communication, and following legal notice periods. Whether you’re selling to an investor or a homeowner, working with a trusted conveyancer will ensure everything runs smoothly.

🏡 Thinking about selling your tenanted property? Contact SL Conveyancing for expert guidance and stress-free settlement!

📞 Call us today!  1300 723 803📧 Email us for more information – slc@slconveyancing.com.au