Selling a property with tenants: a complete Australian guide

Plenty of landlords assume the tenant has to go before the property can be sold. That assumption can cost you months of rent. You can sell a rental with the tenant still living there, and to the right buyer, the tenant is part of what you’re selling.

A tenanted sale has to work for three people, not two.

You own the asset. The tenant has a legal right to live in it and enjoy it. Plan the sale around both.

Can you sell a property while tenants are living in it?

Yes. Ownership of a rental property can change hands while the tenant stays put. The key is that selling the property and ending the tenancy are two separate legal processes. You can decide to sell without anyone’s permission. That decision doesn’t remove the tenant’s rights.

Which of these applies to you depends on the lease. Read it before you do anything else.

What happens to the tenancy agreement when a property is sold?

Selling with a fixed-term lease

A fixed-term lease generally gives the tenant the right to stay until the agreed end date, subject to limited exceptions. A buyer wanting to move in is not one of them. Don’t assume you can end the lease early to suit a buyer. In WA, for example, Consumer Protection says plainly that selling doesn’t end a fixed-term agreement and the tenant can stay until it ends.

Selling with a periodic lease

A periodic (month-to-month) tenancy is more flexible, but the rules for ending one now vary a lot between states. Victoria and NSW have removed “no grounds” terminations, so you need a lawful reason, and selling with vacant possession has its own notice and evidence rules. WA still has different rules for periodic agreements. Check the current law in your state before you promise a buyer anything.

Does the new owner take over the lease?

Generally, yes. When the sale settles, the buyer steps into your shoes as landlord. That means:

• The existing tenancy obligations
• The agreed rent and the lease terms
• Ongoing maintenance responsibilities
• Communication with the tenant
• Bond administration and records, as your state requires

Your property management agreement is a separate contract between you and your agent. It doesn’t transfer automatically. The buyer can appoint the same manager or a different one, and you may need to give your manager notice to end your agreement.

Should you sell with tenants or wait until the property is vacant?

“Vacant sells for more” is the usual advice. It’s too simple. The answer depends on who’s likely to buy, the lease, the presentation and what waiting will cost you.

When selling with tenants can make sense

• The property suits investors
• The tenant pays reliably
• The rent is at or near market
• The property is well maintained
• The lease has a good stretch left to run
• You want the rent to keep coming in during the campaign

When selling vacant can make sense

• Your likely buyer is an owner-occupier
• The property needs significant presentation work
• Inspections would be hard to arrange with the tenant in place
• The tenancy can lawfully end in a suitable timeframe
• You want to offer vacant possession

Does a tenanted property sell for less?

There’s no standard discount. A long lease at a good rent can attract an investor and put off a family who wants to move in next month. The effect on price depends on the market, the rent, the lease, the presentation and who your buyer is. Work out who’s most likely to buy first. The tenancy question usually answers itself after that.

What rights do tenants have when their property is being sold?

Tenants have the same rights whether you sell through an agency or privately. Across Australia, those rights cover:

• Written notice that the property is being sold
• Privacy and quiet enjoyment of their home
• Entry only on proper notice and at permitted times
• Limits on how often buyers can inspect
• Protection of their belongings, including in photos
• The right to stay for the term of a valid tenancy agreement
• Access to the tenancy tribunal or authority if there’s a dispute

Do tenants have to agree to open homes?

It depends on the state. In Queensland, you can only hold an open house or an on-site auction if the tenant agrees in writing. Other states don’t require agreement but limit how often inspections can happen, for how long and with how much notice.

Can tenants refuse to let buyers in?

A tenant can refuse an unreasonable request, such as entry without proper notice or a fourth inspection in a week where the law allows two. They can’t refuse entry the law permits after you’ve given proper notice. If you can’t agree, go to your state’s tenancy authority or tribunal. Never enter without lawful authority.

Can you ask tenants to keep the property clean?

Tenants have to meet their ordinary obligations under the lease, which usually means keeping the property reasonably clean. Selling doesn’t give you the right to demand professional cleaning or styling beyond that. Ask nicely, offer to pay for a clean, and say thank you.

Selling a property with tenants: state-by-state rules

This is a summary, current as of October 2026. It doesn’t cover every notice period, exemption or type of tenancy. Check your state’s tenancy authority, or ask a solicitor, before you issue any notice.

Rule changes that affect vacant possession

• Victoria: since 25 November 2025, no-fault evictions are banned. You need a valid reason to give a notice to vacate, even at the end of a fixed term. The notice period for a qualifying sale is generally 90 days.
• NSW: since 19 May 2025, you need a lawful ground to end a tenancy. A proposed sale and a sale requiring vacant possession are separate grounds. Each has its own notice period and evidence rules. For example, it’s 30 days once a sale contract requires vacant possession, and 60 to 90 days for a proposed sale depending on the lease.
• Queensland: you must give the prescribed notices, and the tenancy doesn’t end when ownership changes. For a periodic tenancy, selling with vacant possession generally needs two months’ notice.
• Western Australia: if a periodic tenancy’s property is sold and the contract requires vacant possession, the landlord generally gives 30 days’ notice. A fixed-term tenant can stay until the term ends.
• South Australia: no-cause terminations ended in 2024. If you sign a sales agency agreement requiring vacant possession, you can generally give a periodic tenant 60 days’ notice.

An inspection notice and a notice to end the tenancy are different documents with different rules. Don’t mix them up. For more state detail, see our guides to selling in Victoria, NSW, Queensland, WA and SA.

How to tell your tenants you’re selling the property

The formal notice is the legal minimum. How you deliver the news decides how the next eight weeks go.

Speak to the tenant early

Call or meet them before the notice arrives in the mail. A tenant who hears it from you first is far more likely to help than one who finds out from a signboard.

Five things to tell your tenant before you list

• That you’ve decided to sell, and why, as far as you’re comfortable sharing
• Whether you expect the lease to continue, without promising what a buyer will do
• The rough marketing timetable
• How photos and inspections will be arranged, and who will coordinate access
• Who they can contact with questions or concerns

Don’t promise the tenancy will continue. A buyer might want to move in, and the contract or a lawful termination could change things.

Set up a clear inspection arrangement

• Agree regular inspection windows that suit the tenant
• Confirm them in writing
• Keep disruption to a minimum
• Coordinate through the property manager where there is one
• Respond quickly to the tenant’s concerns

A predictable Saturday slot beats a stream of short-notice requests.

What if the tenant doesn’t want the property sold?

You don’t need the tenant’s approval to sell. They keep their legal rights all the same. The right to sell is one thing. Access and ending the tenancy each have their own separate legal requirements.

How to prepare a tenanted property for sale

Someone else lives here, so you’re presenting their home, not staging yours.

What can the landlord arrange?

Depending on the lease, access rules and what you agree:

• Professional photography
• Necessary repairs
• Garden maintenance that’s your responsibility
• Minor presentation improvements
• Building and exterior maintenance
• Property records for buyers

What needs the tenant’s cooperation?

• Moving belongings for photos
• Particular inspection times
• Extra cleaning or presentation
• Rearranging furniture
• Anything else beyond their ordinary lease obligations

Can you use old listing photos?

Old photos can save the tenant a lot of disruption, but they have to show the property as it is now. Don’t use photos that hide damage or show a renovation that has since changed. Also check whether old photos show a former tenant’s belongings. NSW requires written consent before publishing interior photos that show a tenant’s belongings. Queensland requires written agreement for photos of a tenant’s possessions, and SA also protects tenants here.

How to advertise and run inspections at a tenanted property

Who should run the inspections?

The property manager, a selling agent, you as a private seller, or a fixed-fee service, depending on what it includes. Whoever does it must follow your state’s tenancy laws on notice, timing and frequency.

Open homes or private inspections?

How to reduce unnecessary inspections

• High-quality photography
• An accurate floorplan
• A complete property description
• Clear information about the tenancy
• Answers to common buyer questions up front
• Qualifying buyers before you book them in

When you have only two inspections a week, every one needs to count. A buyer who has already seen the floorplan, the rent and the lease end date turns up ready to make a decision. One who hasn’t is browsing in someone’s home.

Who is likely to buy a tenanted property?

Another investor

To an investor, a good tenant is income from day one with no letting fees and no vacancy. They’ll want to know:

• The current rent
• When the lease started and when it ends
• The rent payment history
• Property management fees
• Ongoing expenses
• Maintenance history
• Local rental market conditions

Share the facts about the tenancy, not the tenant’s personal information. Names, contact details and anything personal stay private unless there’s a lawful basis to share them.

An owner-occupier

An owner-occupier’s first question is when they can move in. The lease end date and whether vacant possession can lawfully be given will decide whether they can buy at all. A family that has to give notice on their own rental can’t wait eight months for yours.

Could your tenant buy the property?

Sometimes the best buyer is already living there. Ask whether your tenant is interested before you go to market. Tenants don’t have an automatic right of first refusal, but a private conversation costs nothing and could save you a campaign.

How to sell a tenanted property: step by step

What happens to the lease, rent and bond when the property is sold?

Does the buyer become the new landlord?

Yes, if the tenancy continues. From settlement, the buyer takes on the landlord’s rights and obligations under the existing lease. The tenant’s rights and the lease terms stay the same.

What happens to rent?

• Rent up to settlement belongs to you
• Rent paid in advance past settlement is adjusted in the buyer’s favour at settlement
• Your conveyancer calculates the adjustment
• The tenant needs new payment details from settlement
• The tenant must be told in writing who the new landlord or manager is

What happens to the bond?

In most states, the bond is held by a government authority, not by you. It has to be transferred to the new owner or the records updated under your state’s rules. Coordinate this with your property manager, your conveyancer and the buyer so it happens at settlement and nobody has to chase the tenant afterwards.

What if the contract requires vacant possession?

Only agree to vacant possession if you can lawfully deliver it by the settlement date. A contract that simply promises the tenant will leave, with no lawful notice or written agreement behind it, sets you up for a breach. That risk is highest when a fixed-term lease runs past the proposed settlement date. If a tenant agrees to leave early, put it in writing and make sure it’s genuinely voluntary.

How much does it cost to sell a tenanted property?

The cost of waiting for vacant possession

Do the sum before you decide. Say the rent is $650 a week and the property would sit empty for 12 weeks between the tenant leaving and settlement. That’s $7,800 in lost rent, plus loan interest, rates and insurance with nothing coming in. Will a vacant sale add more than that to your price? Sometimes it will. Often it won’t. These figures are an example only. Use your own rent and timeline.

See also real estate advertising costs and legal fees for selling a house.

Capital gains tax when selling a tenanted property

The fact that tenants live there doesn’t decide your tax on its own. What matters is:

• When you bought the property
• Whether it was ever your main residence
• How long it earned rent
• Your cost base
• Your tax residency
• Which exemptions and concessions apply

If it used to be your home, the ATO’s six-year rule may let you keep treating it as your main residence for up to six years while you rent it out, as long as you don’t treat another property as your main residence. Conditions apply.

Also, for contracts signed from 1 January 2025, the buyer must withhold 15% of the price for the ATO on any property sale unless you give them a clearance certificate. Australian residents should apply for one early. It’s free. Talk to a registered tax agent before you sell.

Can you sell a tenanted property without a real estate agent?

Yes. You can sell a rental privately or through a licensed fixed-fee service. The tenancy adds work you’ll need to cover:

• Coordinating with the tenant
• Giving the right notices on the right forms
• Arranging buyer access within the limits
• Handling enquiries
• Describing the lease accurately
• Negotiating the terms of sale
• Working with your property manager
• Making sure the contract matches the tenancy

Unreserved charges a flat fee, never a percentage of your sale price. With Unreserved Plus, a licensed campaign manager handles the advertising, buyer enquiries, follow-up and negotiation, and the owner runs the inspections. With a tenant in place, inspections need extra planning. Before you sign up, we’ll work through with you who opens the door, how entry notices are given and what role your property manager plays, so you know it suits your property.

Tenanted property selling checklist

• Read the lease: type, end date, rent and special conditions
• Decide tenanted or vacant, based on your likely buyer
• Check your state’s current notice and termination rules
• Talk to your tenant before the formal notice
• Serve the notice of intention to sell on the correct form
• Agree inspection times and confirm them in writing
• Get consent before photographing the tenant’s belongings
• Prepare the tenancy information buyers need, without personal details
• Have your conveyancer check the contract matches the tenancy
• Get tax advice and an ATO clearance certificate
• Organise the rent adjustment, bond transfer and management handover
• Tell the tenant who their new landlord is

Questions people ask

Can you sell a property with tenants in Australia?

Yes. You can sell a rental while tenants live in it. The lease doesn’t end automatically, and you must follow your state’s rules on notice, inspections and advertising.

Do tenants have to move out when a property is sold?

No. A sale doesn’t end the tenancy. The buyer generally takes over as landlord. A tenant only has to leave if the tenancy is lawfully ended or they agree to go.

Can you sell a house during a fixed-term lease?

Yes. The tenant can generally stay until the fixed term ends, and the buyer takes over the lease. A buyer wanting to move in doesn’t, on its own, let you end the lease early.

How much notice do you have to give tenants when selling?

It depends on the state. Victoria and NSW require at least 14 days’ written notice before the first buyer inspection. SA requires notice within 14 days of signing an agency agreement, and you can’t advertise or show the property until 14 days have passed. Queensland requires a notice of intention to sell before or with the first entry notice. Ending the tenancy needs a separate notice with its own period.

Can tenants refuse property inspections?

They can refuse entry that doesn’t follow the rules, such as short notice or too many inspections. They can’t refuse lawful entry after proper notice. Take disputes to your state’s tenancy authority or tribunal.

Do tenants have to allow open homes?

In Queensland, open houses need the tenant’s written agreement. Other states limit how often and how long inspections can run. Agreeing a schedule with the tenant works better than insisting on your rights.

Can you take photos of a tenanted property?

Yes, with proper notice. Several states protect tenants’ belongings in marketing photos. NSW and Queensland require written consent or agreement for photos that show them, and Victorian renters can object to certain items being shown.

Can a landlord ask tenants to leave because they want to sell?

Only through a lawful termination in your state or a genuine voluntary agreement. Many states now require a valid reason, and selling with vacant possession has specific notice and evidence rules. A fixed-term tenant can generally stay until the term ends.

Does the new owner have to honour the existing lease?

Yes. The buyer takes over the landlord’s rights and obligations under the existing tenancy, including the rent and other terms, until it lawfully ends.

What happens to the rental bond when a property is sold?

The bond is transferred to the new owner, or its records updated, under your state’s rules. Your property manager and conveyancer usually handle this at settlement.

Is it better to sell a property with tenants or vacant?

It depends on your likely buyer. Investors often value a good tenancy. Owner-occupiers usually want vacant possession. Compare the rent you’d lose by waiting against any likely price gain.

Does selling with tenants affect the property value?

It can, in either direction. There’s no standard discount. The rent, the lease length, the presentation and the buyer pool all play a part.

Can a tenant buy the property they’re renting?

Yes. You can offer it to your tenant before or during the campaign. Tenants don’t have an automatic right of first refusal, so it’s your choice.

Can you sell a tenanted property privately?

Yes. You still have to give the right notices, follow inspection limits and make sure the contract matches the tenancy. A conveyancer handles the legal side.

Do you pay capital gains tax when selling a tenanted property?

Usually, unless an exemption applies. It depends on when you bought it, whether it was ever your home and how long it was rented. The six-year rule may help if it’s a former home. Ask a registered tax agent.

Can you offer vacant possession while tenants are still living there?

Only if you can lawfully deliver it by settlement, through a valid notice or a written agreement with the tenant. Don’t sign a contract promising vacant possession you can’t guarantee.

Planning a sale? Read the process of selling a house, check how much your house is worth, or see home selling negotiation strategies.