Tenant incentives to vacate

I am preparing a house for sale that is currently tenanted under a fixed term lease, however given the seller opportunities in Sydney at the moment with limited stock available on the market, I'd be keen to explore vacating the home to present for greater value opportunities under 'agreed circumstances'.

They're great tenants and I do feel bad, plus I'm not evicting them and they don't have to leave; however I'd be keen to hear of other incentives that have been put forward and accepted by tenants to vacate a property earlier than the lease expiry to ensure they're not impacted to greatly.

Throw all suggestions at me... rent free periods (how long), cash payment (how much), moving costs contribution or something else?

 

Sell to tenant! Win Win !

 

Yep, tried that. Would've been a perfect scenario.

 

I've been in a similar situation.
Started this thread, maybe you can find some useful info there:

Selling tenanted house

 

I offered two weeks rent waiver as recognition of the tenant assistance once the sale was settled. It also meant that the rent wasnt in advance on the day it settled and was square. Otherwise I would have had to pay that to the new owner. So it worked out being no true impact . I basically had repaid what they were inadvance. I still wonder if they had to then catch up again

 

I've seen big payments of $10k and $15k for tenants to give up the rest of their fixed terms before. Sounds like a lot but probably worth it to the owners in terms of getting better selling prices.

 

You're probably right, we would no doubt get this covered well and truly if we can stage the house properly, but would need to be subject to a certain sale price etc, or could even offer a % of the sale price.

 

Had a similar situation. I purchased a property with a tenancy (6 months outstanding) which I wanted to move into.
I was aware that my tenant had lost some work hours with COVID and that they might appreciate the opportunity to move elsewhere to take advantage of cheaper rents. They could probably rent a comparable for about 100-150/week cheaper than what they were paying me.
I simply offered the tenant the option to terminate early without penalty, 2 weeks later, they were gone.

 

When I bought my PPOR apartment (with an existing tenant contract - maybe 6 mo. left), I was very surprised when they agreed to move out within four weeks for what equated to 3 weeks worth of rent $.