Introduction
Long-term tenants can be an asset or a complication when selling a block of units. Simon Abbott outlines the practical steps and scenarios for owners in Victoria in 2026.
Pros of Selling With Tenants in Place
- Attractive to pure investors seeking immediate income
- Certainty of established rental history
- Minimises tenant disruption and potential vacancies
Pitfalls & Legal Issues
- Fixed leases may limit vacancy if buyer wants vacant possession
- Rent below market level can hinder value
- Communication with tenants is critical—poor relationships can derail inspections and access
Simon’s Practical Recommendations
- Be transparent in disclosure—buyers must know lease lengths and escalation clauses
- Offer a flexible settlement if vacant possession is requested
- Engage a property manager early to smooth access and communications
Scenario: Successful Sale With Mixed Tenancies
In Heidelberg, Simon managed a block with a long-term tenant mix—clear communication, staged viewings, and flexible contract terms helped secure a higher price than similar vacant blocks that failed to sell quickly.
Takeaway:
With a direct, open approach, long-term tenants can actually boost a block’s appeal to the right buyer.
Book a confidential, obligation-free sale strategy with Simon Abbott.
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