Selling an Apartment with Tenants in Sydney (NSW)

If you're planning to sell your Sydney apartment but it’s currently tenanted, it’s important to understand your rights and obligations as a landlord under New South Wales tenancy laws.

Getting the timing right can make a huge difference to your sale result—and help you avoid legal or logistical headaches.

In Sydney, the rules for selling a rental property depend on the type of lease the tenant is on.

Here’s what you need to know*:

If your tenant is on a fixed lease:

You cannot require the tenant to vacate before the end of their lease (unless they agree to leave voluntarily).

You must give the tenant 90 days notice before the end of the lease that you intend to sell and they must vacate. 

You CAN legally still list and market the property while tenanted, but this will limit buyer interest and inspection access, cost money for each inspection, and the property is unlikely to be as well presented with tenants in.

My advice - AVOID this if you can. 

Buyers are mostly owner-occupiers at the moment, so many prefer a vacant property they can inspect properly and move into quickly.

Be aware of:

After getting the 90 daytermination notice tenants can provide the landlord with a minimum 14-day early exit notice.

Recommended: 

1. If your tenant is on a fixed lease, work backwards from lease expiry and start planning around 4 months from lease expiry. That way, you can comply with the legal requirements, present it professionally and attract more interest, and be fully ready when the time comes.

2. If you are not yet sure whether you will sell, or are not ready, do NOT renew your lease with the tenants, just keep them on a monthly basis (periodic) tenancy.

If you are unsure about this, please give me a quick WhatsApp, text or call. But this is extremely important.

SUMMARY

If your tenant is on a periodic (month-to-month) lease:

If your tenant is on a periodic lease (month-to-month), you can give them 90 days’ notice to vacate if you intend to sell the property.

Be aware of:

Tenants who receive a termination notice from a landlord may leave the property before the termination date. Under a periodic agreement, tenants may leave any time before the termination date WITH JUST 14 DAYS NOTICE, and do not need to give any reason. Tenants will not be required to pay rent after they have left the property. 

Recommended:

If your fixed term lease is ending, do not renew the lease if you intend to sell, but rather, keep on a month by month basis (periodic tenancy).

If your lease is periodic, consider giving notice once you're confident of your marketing timeline.

But always discuss it with the tenant respectfully and clearly. 

I got my client nearly $100,000 more for this unit than the Property Mangers valuation. The tenants left, and we staged it.

Read the full client Testimonial here..

NEED HELP navigating all these new rules and regulations when thinking of selling, without it costing you a fortune in legal advice?

My FREE sellers service may just what you need. (WHY is it Free? Read

My Selling Tips:

If you're thinking about selling:

  • Always work backwards from the lease expiry date (or target sale date), plus the notice period.

  • Obtain your Certified Valuation while the tenants are there.

  • Get an approx. sales price before engaging any agents. (I can provide this as part of my free service) 

  • Check your Capital Gains Tax Liability before making decisions on whether to sell.

  • Engage your agent and legal rep. to prepare sale documents early.

  • This allows you to lawfully issue a notice and sell without legal delays.

Need tailored advice for your property in Sydney? Contact me — I’m here to help sellers plan around tenancy timelines with no surprises.

"Many thanks for the huge advice and assistance you gave us. Your tireless and good natured coordination of the whole process and its many aspects have been and continue to be invaluable, including putting us in touch with the relevant experts in the necessary fields and the friendly tips you are always ready and willing to offer".

Charles C, Hong Kong

Email me: michael@citylifeproperty.com

(Please Copy and Paste. No Direct Link To Avoid Spammers And Robots)

 

* As at July 2025. This is general advice only, not professional advice.  As these regulations can change without notice, Always refer to NSW Fair Trading for current laws: https://www.fairtrading.nsw.gov.au