How to ask tenants' leaving before sales

The IP in Brisbane is occupied by tenants. I want to renovate the IP before selling the IP ASAP. What is the best option?

1. Selling IP while tenants are living there without renovation
2. Give tenant compensations and ask them to move out. What is the notice time? I expect 1 month of notice and 2 months of domestic renovation (painting, kitchen domestic i.e. paint, replace benchtop). What other best way to ask tenants move out?

I understand that there is a price difference between renovated and unrenovated IPs.

 

Neither? Why are they the only options?

 

W

30 days prior to expiry of the lease (for NSW so check Qld requirements)..

 

Thanks, what are other options?

 

Thanks for info,

 

Selling without tenants or renovations? Are you sure it's even worth renovating? I wouldn't bother without at least 3:1 returns on the cost.

 

if your IP appeals to investor having tenant in place usually works out better as they only care about numbers. few tricks i do if i planned on selling, is set a high rent and offer free week rent at renewal. economically its same but it gives higher headline yield for marketing.

in this case if you do want to sell without trnants, communication is key. you tell them exactly you want to sell your unit so they can leave anytime without penalty and guage their response.

i once.wanted to get my tenant out, even offered them 2wk rent to leave and they refused because they were building their home and.short lease.wasnt economical.

 

The RE agent told me that tenants are actively looking a new place. However, he struggled to find one. It was a month now. Should I rent a place and give him? Ask him reimburse me partly the rent.

 

Ah, no you should not. If your name is on the lease you will legally be liable for the property.

 

I am thinking to sell my IP and want to tell the tenant to move out as well. I think the best is to communicate with the tenant and see what their preference is. Mine IP has a 12 months lease, in NSW, if the tenant insist to stay, I dont think owner can do anything, the only option is to sell with lease.

 

Get the agent to let them know the property will be coming on the market. Some tenants hate the idea of the disruption of strangers traipsing through their home a couple of times a week and will move out anyway, especially if the agent emphasises that there is no guarantee that an investor will buy it and the new owner may terminate the lease as soon as it is up. If that doesn't motivate the tenants to go, THEN offer them a cash incentive to leave (but only after they've signed a new lease somewhere else).

With covid around, many people just don't like the idea of people coming through their private space.

 

May I know why we need to wait for tenant to sign a new lease before we offer them cash incentive to move out?

 

If they've signed a new lease elsewhere they are moving out. No need to pay them. Only reason to offer money is if you want them to terminate a fixed lease early.
We decided to sell one with tenants in. But when we informed them we were selling they gave notice. Worked out better for us as we did a tidy up and it presented a lot better than with a tenant in.