If you own a tenanted property in Canberra and want to sell, one question comes up first: do you sell with the tenant in, or wait until the property is empty? Both can work. Each has a real cost. This guide sets out the rules, what each choice does to your buyer pool, and how to compare the numbers.
The short answer
Keep the tenant if your likely buyer is an investor, the lease is secure and the home shows well as it is. Sell it empty if your likely buyer will live there, the home needs work, or the lease is ending anyway. For most Belconnen houses, owner-occupiers set the top price. For many units and apartments, investors do.
Option 1: Sell with the tenant in
Why owners choose it
- The rent keeps coming in while you sell.
- Investors can see a proven rent from day one.
- There is no vacant period, so no lost rent while you prepare.
What it can cost
- Fewer buyers. Most owner-occupiers want to move in soon, so a long lease puts them off.
- Less control over presentation. The home looks the way your tenant lives in it.
- Fewer inspection times. Your tenant must get notice and a say in times.
The rules in the ACT
- Tell your tenant in writing that the home is going on the market.
- Give 48 hours' notice before each buyer inspection.
- Buyer inspections are limited to two a week.
- A fixed-term lease does not end because you sell. The buyer takes it over.
A tenant who feels respected makes the sale easier. Agree the inspection times early, keep them short and thank them. Some owners offer a small rent reduction during the campaign. It is often money well spent.
Option 2: Sell it empty
Why owners choose it
- You reach every buyer: owner-occupiers and investors.
- You can clean, repair, paint and style the home first.
- Open homes can run whenever buyers want to see it.
- The buyer can settle and move in, which suits most families.
What it can cost
- Lost rent from the day the tenant leaves until settlement.
- Holding costs keep running: rates, insurance and loan repayments.
- Timing. You cannot end a lease whenever you like.
The rules in the ACT
- On a periodic lease, you can end the tenancy because you plan to sell. You must give 8 weeks' notice and proof, such as a statutory declaration.
- On a fixed-term lease, the tenancy usually runs to its end date. Plan your sale around that date, or agree an earlier date with your tenant.
How to compare the two
Put both options side by side in dollars. Here is a simple example. The numbers are for illustration only.
- A house rents for $650 a week.
- Preparing and selling it empty takes 10 weeks.
- That is about $6,500 in lost rent.
- If selling empty lifts the price by just 1% on an $800,000 home, that is $8,000.
In that case, selling empty comes out ahead. If the home is a unit that mostly investors buy, the result can flip. The tenant and the rent may be worth more to the buyer than an empty home.
Five questions to answer first
- What type of lease is it, and when does it end? This sets your earliest date to sell it empty.
- Who is most likely to buy it? Families, first home buyers or investors. Recent sales in your street will tell you.
- How does it show right now? Wear and tear that is fine for a tenant can cost you with a buyer.
- How is your relationship with the tenant? A cooperative tenant makes a tenanted sale far easier.
- What does it mean for your tax? Ask your accountant before you set a date. Timing can matter.
What we see in Canberra right now
Fewer homes are coming up for sale than usual. Cotality's figures show new listings about 15% below the 5-year average. That helps homes that are presented well and priced right. For a house in a family suburb, that usually means empty, repaired and styled. For an apartment with a strong lease, a tenanted sale to an investor can be the faster, simpler path.
We are a sales-only agency, so our advice is not tied to keeping a rent roll. We work with your property manager on access, and we cost both options for your home before you decide.
Next step: Book an appraisal and we will show you both options costed for your property: price, timing and lost rent side by side. You can also read more on selling an investment property.
This guide is general information only. It is not legal or tax advice. Check the current tenancy rules and your own lease with your solicitor, and speak to your accountant about tax.
