Selling Your Property: Vacant or with Tenants in Place? Which Option Suits Your Property Best?

Posted By Frank Pang

When it comes to selling an investment property, one of the critical decisions you'll need to make is whether to sell it vacant or with tenants in place. Each option has its advantages and disadvantages, and the right choice depends on your property's specific circumstances and your goals as a seller. In this blog, we'll discuss the factors to consider when deciding which approach is best for your property, especially in the context of rising interest rates.

Properties Suited for Selling Vacant:

Properties that appeal to owner-occupiers: If your property is in a desirable location, has popular features, and is in good condition, it's more likely to attract owner-occupier buyers who are willing to pay a premium for a move-in ready home. Selling the property vacant allows you to target this group of buyers, increasing the chances of receiving higher offers.
Properties that require minor upgrades or repairs: If your property needs some minor improvements or repairs to maximize its appeal, selling it vacant provides you with the opportunity to complete these tasks and present the property in its best possible condition.
Properties in a strong seller's market: If the local real estate market is booming and properties are selling quickly, selling your property vacant might be a viable option, as the potential loss of rental income during the selling process may be relatively short-lived.

However, with rising interest rates, selling a property vacant also comes with some risks. The holding time and cost, as well as the potential for renovation expenses, should be considered carefully.

Properties Better Suited for Selling with Tenants in Place:

Properties that primarily appeal to investors: If your property is situated in a location or has features that primarily attract investors, it might be more beneficial to sell with tenants in place. Investors often value the security of an existing lease and a reliable rental income stream.
Properties in a slow or uncertain market: If the local real estate market is sluggish or uncertain, selling your property with tenants in place can provide you with ongoing rental income while you wait for the right buyer to come along.
Properties with long-term, reliable tenants: If you have reliable, long-term tenants who take good care of the property and pay their rent on time, selling with tenants in place can be an attractive proposition for potential investors.

In the context of rising interest rates, selling a property with tenants in place can also help relieve the pressure from loan repayments, making it a more attractive option for some sellers.

Deciding whether to sell your property vacant or with tenants in place requires careful consideration of various factors, including the property's features, condition, location, and the local real estate market, as well as the current interest rate environment. Ultimately, the decision should be based on what will maximize your property's appeal to potential buyers and achieve the best possible outcome for you as a seller.

If you're unsure about the best approach for your property, don't hesitate to reach out to our experienced agents. They can provide valuable insights into the preferences of local buyers and investors, as well as guidance on the potential benefits and drawbacks of each approach in light of rising interest rates. Contact us today to get an updated property valuation or to learn what your property is worth in the current market. Our team is ready and eager to help you make the most informed decision to maximize the value of your property.

Frank Pang

0433 388 898

"Welcome to our real estate blog! I'm Frank, Director of BOLD, with 15+ years in Melbourne's property market. Here, we share insights, tips, and market updates to help you make informed real estate decisions. Catering to investors and first-time homebuyers alike, we're excited to have you join us. Reach out with any questions, and let's navigate the property world together!"

#BoldPropertyRealEstate #homesforrent #homes4rent #rentalhomes #rentalproperties #leaseahome #leaseproperty #apartmentforrent #houseforrent #unitforrent