Do You Need to Evict Tenants Before Selling a Block of Units? Legal & Strategy Guide (2026, Victoria)

Many block owners believe vacant possession guarantees a higher price, but in the investment property world, that’s not always true. Simon Abbott explains Victoria’s 2026 laws and real-world outcomes when it comes to tenanted blocks of units, evictions, and off-market sales.

When Are Vacancies Required?

• Buyers intending to live in multiple units themselves (rare)
• When buyer requests all-vacant contract and is willing to pay premium
• For major renovations or redevelopment, subject to terms
• If tenancy agreements are irregular, illegal, or very under-market

When Investors WANT Tenants

• Most investor buyers prefer solid, compliant leases—guaranteed cash-flow from day one.
• Evicting tenants unnecessarily can shrink the buyer pool and cost months of lost rent.

Legal Obligations in 2026

• Victoria’s Residential Tenancies Act requires minimum notice periods for eviction (currently 60–120 days depending on the grounds).
• Early disclosure is critical: buyers must know which units are occupied, lease lengths, rent paid, and any notices already served.

Simon’s View

“Empty blocks usually mean lost value unless you’re selling for redevelopment.”

Real Scenario

One North Geelong block sold above appraised value entirely with tenants in place—the buyers were “yield hungry” and needed full books, not empty rooms.

Get your strategy right—avoid the costly error of “blanket” evictions.

Ask Simon Abbott for a strategy tailored to your block and buyer market.