How they can enable a smooth and orderly transfer

Informing your property manager of the sale of your investment property helps to ensure a smooth and orderly transfer of ownership and protects your interests as a landlord and this is how:

  • Continuity of management – allowing us to prepare for a smooth transition of management to the new owner
  • Maintenance and repair obligations – We coordinate maintenance or repairs before the sale, ensuring the property is in good condition for the new owner
  • Rent collection: If sold with tenants, we continue to collect rent and enforce the lease terms until the sale is completed
  • Inspections – We liaison with tenants and sales agents regarding inspections.  We also organise the vacate inspection and finalise the tenancy

At Leah Jay Investment Services we provide additional support whether you are looking to sell your investment property or to discover other possible improvements to achieve better Returns on Investment, helping you to go further:

  • Discussing the tenancy – implications of selling now or when the property is vacant, what notice the tenant requires
  • Ensuring the property is in good condition and making it present well. (Case in point: Lyn)
  • Knowing when to sell with the property vacant or with tenants
  • Referring a sales agent and/or offering independent advice regarding services and commissions charged
  • Conveyancing – The conveyancer will require information from the property manager regarding the tenancy and discussing notice of Attornment on settlement so that funds can be disbursed correctly
  • Other factors impacting the sale and price

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Pippa Rose, Lead Investment Services Manager, speaks about her experiences with clients

“I recently spoke with a landlord who is selling two of his units. He couldn’t understand why the valuations he expected to achieve were not what the sales agent had in mind. The owner could lose over $100k on each unit because he has not managed his properties to their full potential.

Dan* has been with Leah Jay for over 20 years, and whilst he appreciates his Property Managers’ work and advice, he likes to do things his own way.  Being a kind-hearted person, he has always wanted to look after his tenants. He repeatedly refused rent increases when his Property Manager suggested it, keeping the tenant on low rent so that they could stay in the property for longer. While this is admirable, it is now showing to have come at a cost that Dan hadn’t previously considered.

The units are well below market value, and one has a Long-Term Tenant of over 20 years. What Dan doesn’t realise is that he has also unwittingly added risks to the future owner.

If Dan had spoken to our IS team when he was planning to sell, we could have helped to prepare him and the units for sale before he engaged a sales agent. Dan would have achieved a much better price as a result, a result that we recently achieved with Lyn* whom we worked for over a year leading up to her sale. We addressed outstanding maintenance issues and planned a freshen-up of the property at the end of the lease before going to market. We also gave Lyn timely advice that helped her achieve $50k over what she was hoping”.

*Names have been changed for privacy

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Key Takeaways

Are you interested in the possibilities of an Investment Property?

If you’re interested in owning an investment property or renting an existing one out, it’s important to seek professional advice first – here are some things to consider before buying your first investment property.

If you are looking for general advice to start your property investment journey, get in touch with our Investment Services team today.

Disclaimer: This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your situation, and for professional advice, seek out a financial adviser.