Selling tenanted apartment

Question from Felicity updated on 15th May 2014:

Hi, I own an apartment in Auckland which is tenated and managed by a property manager. The apartment has been for sale for seven years. The property manager has always been aware that the apartment is for sale but is now trying to force me to have the tenants vacate the apartment because "they can't rent it while it is for sale". What are my rights and can I seek compensation from the property manager if the tenants leave? Thanks.

Our expert Krister Samuel responded:

There can sometimes be a fractious relationship between a landlord or property manager and a tenant when it comes time to sale, particularly if the sale campaign drags on.
The current market conditions are providing expedient sales results (within around three weeks) at bullish price levels so it is of serious concern that you have not been able to secure a sale within seven years.
Your property manager is obligated to inform tenants if the apartment is on the market for sale and this may indeed turn tenants off or encourage sitting tenants to vacate.
My advice is for you to make a choice between two options - either actively promote the apartment over a three week campaign or formally withdraw the property from the market.
If you feel that your property manager doesn't have your best interests at heart and you're not contractually obligated then show your property manager the door. However, your property manager isn't liable for compensation should the tenant decide to move on.

Krister is ranked in the top 1% of all real estate agents nationwide and specialises in the high yielding Auckland apartment market. He is happy to share insights and information on any aspect from an extensive knowledge base built up over a decade.

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