Selling a Tenanted Property in Christchurch

Selling a Canterbury investment property with tenants in residence is a common situation that requires careful management of both the legal obligations to your tenants and the practical challenges of conducting a property sale with occupants in place.

Tenant Rights When You Sell

Your tenants' rights under the Residential Tenancies Act are not affected by your decision to sell. The tenancy continues regardless of ownership change unless the tenancy is specifically ended through the proper legal process. If you want the property vacant for sale, you must follow the correct notice procedure. For periodic tenancies, you can give 90 days notice to vacate if the property is being sold unconditionally and vacant possession is required. For fixed term tenancies, you cannot end the tenancy early to facilitate a sale - the tenancy runs to its expiry date, at which point you can choose not to renew.

Access for Viewings and Open Homes

You must give your tenants at least 48 hours notice before entering the property for viewings, open homes, or any other inspection. Notice must specify the date and time of entry. While you have the legal right to conduct viewings with proper notice, your tenants are living in the property and their cooperation makes the campaign significantly smoother. Discuss your intentions with your tenants before listing, explain the timeline, and wherever possible accommodate their preferences around timing. Tenants who feel respected and informed are far more likely to have the property presented well than those who feel blindsided or disrespected.

Selling with the Tenancy in Place

An alternative to obtaining vacant possession is to sell the property as a going concern with the tenancy in place. Many Canterbury investors specifically look for tenanted properties to avoid the vacancy gap between purchase and finding a new tenant. If you sell with a tenant in place: the buyer takes over the landlord obligations under the existing tenancy agreement; the buyer must be informed of the tenancy terms and rent level before agreeing to purchase; and the tenant continues their tenancy with no disruption. This approach can attract a specific pool of investor buyers and may allow a quicker sale without the need to manage a vacant property.

Practical Tips for Managing the Campaign

Brief your tenants clearly and early. Consider whether offering a small rent reduction in exchange for cooperation with viewings is worthwhile. Ensure your agent understands they must give proper notice for every entry. Be prepared for the property to not always be at its best for open homes when someone is living in it - build this into your price expectations and buyer briefing rather than expecting the property to present as a vacant show home.

Information from tenancy.govt.nz, the Residential Tenancies Act, and the New Zealand Law Society. For general information only - always consult a lawyer or tenancy specialist before making decisions about tenanted property sales.