Do’s and Don’ts for Landlords
Selling a residential property in Queensland or anywhere in Australia while it is still tenanted is very common for an investment property. There are however legal, practical, and commercial considerations that landlords must manage carefully. You must understand the process and get it right to protect your sale, avoid disputes, and reduce stress for everyone involved. Get it wrong, and you risk delays, penalties, or a disgruntled tenant undermining your campaign.
Here’s a practical guide to the key do’s and don’ts for landlords selling a tenanted property in Queensland.
The Do’s
1. Do understand that the lease continues after sale
A tenancy does not end because the property is sold. The buyer inherits the tenancy under the same terms and conditions unless the tenant is lawfully required to vacate, and you have issued the necessary eviction notices at the appropriate time.
- Fixed-term leases continue until their end date
- Periodic agreements also carry over but can be terminated with the correct notice
- Rent, bond, and special conditions remain unchanged
This is one of the most misunderstood points—and a major source of disputes.
2. Do give correct written notice before entering for sales activities
In Australia, tenants are entitled to quiet enjoyment of the property.
Before any sales-related entry:
- Entry notice (Form 9)must be given
- Minimum notice period applies (generally 24 hours)
- Entry must be at a reasonable time
This applies to:
- Appraisals
- Photography
- Open homes
- Property Inspections
- Valuations
Turning up unannounced or “assuming it’s okay” is a fast way to breach the Act.
3. Do communicate early and respectfully with your tenant
A cooperative tenant can make or break a sales campaign.
Good practice includes:
- Explaining your intention to sell early
- Outlining how inspections will work
- Being flexible with times and work with your tenant as much as possible
- Acknowledging inconvenience
Tenants who feel respected are far more likely to:
- Keep the property presentable
- Allow access without resistance
- Stay neutral (or even helpful) during inspections
4. Do consider selling with the tenant in place
In many cases, selling with a tenant in place can be an advantage for an incoming investor.
These Advantages include:
- Immediate rental income for investors
- Lower holding costs during settlement
- Broader buyer appeal for investors
This approach works particularly well when:
- The tenant is long-term and reliable
- Rent is at or near market level
- Your tenant is up to date with payments and had no disputes
- The lease terms are clear and well-documented
5. Do disclose tenancy details accurately to buyers
Contract law and best practice require transparency.
What to disclose to buyers:
- Lease type (fixed or periodic)
- Rent amount and payment frequency
- Lease expiry date
- Any rent increases scheduled
- Special conditions or agreements
6. Do seek professional advice before issuing notices
If your buyer wants vacant possession, timing is critical.
Before acting, confirm:
- Lease type
- Lawful grounds for termination
- Correct notice period
This is an area where a property manager or solicitor is well worth the cost.
The Don’ts
1. Don’t assume you can force the tenant out to sell
Tenants have strong legal protections.
You cannot:
- End a fixed-term lease early just because you’re selling
- Pressure a tenant to leave
- Offer misleading information about their rights
2. Don’t overdo inspections and open homes
Even during a sales campaign, tenants’ rights still apply.
Avoid:
- Excessive open homes
- Multiple entries per week without agreement
- Ignoring tenant objections
Too many inspections can:
- Breach quiet enjoyment
- Lead to formal complaints
- Cause the tenant to disengage (or deliberately stop cooperating)
3. Don’t forget compensation may apply
In some cases, tenants may be entitled to compensation, for example:
- If they agree to extra inspections
- If you negotiate early termination
- If the sale significantly disrupts their living arrangements
Trying to save money by ignoring this often backfires through delays or disputes.
4. Don’t rely on verbal agreements
Always document:
- Inspection arrangements
- Any rent reductions
- Early termination agreements
- Access concessions
Verbal promises are difficult to enforce and easy to misunderstand—especially once a buyer, agent, and conveyancers are involved.
5. Don’t forget the tenant’s presentation affects your sale price
A disengaged or unhappy tenant may:
- Refuse to tidy
- Leave clutter visible
- Be openly negative to buyers
On the other hand, a respected tenant often helps protect your value.
Some landlords offer:
- Professional cleaning before opens
- Gardening support
- A small rent reduction during the campaign
These costs are often minor compared to the impact on sale price.
If in doubt, seek advice early—because once a campaign is live, fixing mistakes is much harder and more expensive.