by Neil King
25 February 2023 / 5 min read
Selling Tenanted property in NSW
Understanding the laws and regulations around selling a rental property with tenants on a lease in NSW is essential to ensuring all parties involved are treated fairly and with equal respect. The Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2019 govern the process of selling a tenanted property. By familiarising yourself with the laws regarding both, a seller can begin searching for buyers without causing too much disruption to the tenant.
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Showing the property to prospective buyers
As the owner or agent of a tenanted property, you have the right to show the premises to prospective buyers. However, you must provide written notice to the tenant at least 14 days before the property is first made available for showing. Working with the tenant to arrange showing times and days that suit them is expected, but the tenant cannot unreasonably refuse to agree to showings. If unable to reach an agreement, the property can be shown up to twice a week, with at least 48 hours’ notice for each showing.
When showing the property, you must ensure that the tenant’s peace, comfort, and privacy are not unreasonably affected during the process. Limit inspections to qualified buyers to minimise inconvenience to all parties involved.
Advertising
Providing your tenant with enough notice before taking photos or videos is essential when advertising a property. Photos or videos published without the tenant’s consent means they can apply to the NSW Civil and Administrative Tribunal (NCAT) for an order that requires them to be destroyed and not used in advertising. Be sure to allow the tenant to move any possessions they don’t want in the advertising and gain written consent before publishing any photos or videos.
Open Houses
You must obtain written consent from the tenant before allowing an open house at the property. Respect the tenant’s right to privacy by not forcing them to agree to an open-house showing.
Notice of Leave
In the event of a property sale, the type of tenancy agreement in place will determine the notice period required for the tenant to vacate the premises. Under a periodic agreement (one that recurs automatically and has no specified end date), you can give a tenant 30 days’ notice to leave the premises if the buyer’s contract requires “vacant possession” of the property. If the tenant wants to end the agreement, they can serve a no reason notice of 21 days.
If a fixed-term lease is in place, it cannot be terminated and continues with the same terms when the property sells.
After selling the property
The seller provides the tenant with a written notice that states the buyer’s name, address and information regarding future rent payments to the buyer.
Deciding to sell a tenanted property can have a signifcant impact on all parties involved. Remember that we are not an official source of legal advice. Before beginning the process, be sure to conduct your own research regarding the laws and responsibilities involve.
For more advice on how to effectively sell your home, check out our blogs here.
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