Simon Abbott, off-market & investor property specialist, explains practical pros and cons of selling units with tenants on long leases in Victoria.

Understanding the Buyer Market

Most blocks of units with existing tenants appeal to investors wanting reliable income. But long leases (over 12 months remaining) can both attract income-focused buyers and deter owner-occupiers/developers who need vacant possession.

1. Pros: Certainty & Cash Flow

• Secure, predictable rental returns for new owners
• Often easier to finance based on sustained tenancy

2. Cons: Less Flexibility & Reduced Buyer Pool

• No vacant possession for buyers wanting to renovate or resell individually
• Developers may avoid blocks “locked up” for multiple years

Simon’s Approach

• Market the asset specifically to buy-and-hold investors and property funds
• Provide a full tenancy schedule, lease summaries, and maintenance records upfront
• Position yield/occupancy security as a selling feature—not a limitation

Victoria Scenario

Last year, Simon sold a block of 8 units in Werribee with 6 tenants on 2-year leases. By matching to 3 portfolio buyers and pre-qualifying finance, he delivered a deal at a premium to “vacant or short lease” stock with less rent certainty.

Conclusion

Long leases are a selling point for the right buyers, but critical to tailor pitch, paperwork, and timing. For expert sale advice—especially off-market—connect with Simon Abbott’s investor network.