If you’re an investor and have a tenant living in your apartment you may have a decision to make. While you can’t ask a tenant to leave if there is a lease in place, if the lease has expired (or will in the next few months) the question is… do you leave the tenant in your apartment while you sell it, or do you ask them to move out?
If you ask the tenant to move out you lose a few months’ rent, but the difference in the presentation, sale price and speed of the sale, easily outweigh this cost or lost rent.
If the tenant stays in the property during the marketing, you can’t control the quality of the presentation either in person or on the web. The photos used on the web listings will be taken while the tenant is there and will almost certainly not show your apartment off in its best light. This will limit the number of people engaging and inspecting your apartment. If it doesn’t look good online people may not inspect it so your sale will miss many buyers.
Even if a tenant looks after your apartment beautifully, once they hear their home is being offered for sale their life is disrupted and they may vacate during the marketing. This means buyers can suddenly be met with removalist boxes and mess at open for inspections.
Unfortunately, lost rental income is just a cost of sale and you should always ask your tenant to move out prior to the marketing commencing if you can. Just remember if your tenant is on a fixed term lease (i.e. not monthly) you cannot ask them to move).