Usually when an empty property goes up for sale, the vendor essentially just sit back and keep their fingers crossed.
However if it is a tenanted property, this can get complicated from the time of the sale listing to the sale as tenants can be stretched to their limit having to accommodate the various requirements that come with a property that is up for sale.
Generally, tenants are obliged to owner’s requests for viewing when appropriate notice has been served, and this is usually covered in the tenancy agreement. So they will have to allow agents to bring strangers in at varying days and times to view the residence.
For the vendor, the pros of selling a tenanted property are :-
-if the property has a good rental yield of about 6% and above, this would attract property investors.
However this may not work with potential owner-occupiers though this will not be an issue if the vendor has an exit clause in the tenancy agreement that allows the sale of the tenanted property.
-if the tenants have beautiful furniture and have kept the property in a good condition, this would work positively towards a sale.
-There wont be a loss of income as from the time the sales campaign start till the completion of the transaction this can take up from 4 to 6 months or more depending on whether its freehold or leasehold property and also other factors relating to financing and documentation.
The cons would be :-
-there is nothing to stop the tenants from being on the premises when the viewing to prospective buyers are done so there may be instances where this can be sabotaged.
-A property that is poorly presented could devalue the property for the owner as much as 10% and this could run into thousands of ringgit. This can be as simple as dirty dishes sitting in the sink or filthy carpets or floors.
-Having to deal with the tenants availability for viewing the property. Sometimes there may be a delay in the viewing as the tenants are not available and this could deter potential buyers.
In the end, the owner has to weigh the pros and cons of of selling their property tenanted or not to decide what would work best for them after taking into consideration various factors that could affect the sale of the property.
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