Selling an Apartment with Tenants in Melbourne (Victoria)
If you're planning to sell your Melbourne apartment but it’s currently tenanted, it’s important to understand your rights and obligations as a landlord under Victorian tenancy laws.
Getting the timing right can make a huge difference to your sale result—and help you avoid legal or logistical headaches.
In Victoria, 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).
If they do agree, it’s best to get it in writing.
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.
Recommended:
1. If your tenant is on a fixed lease, work backwards from lease expiry and start planning around 3-4 months from lease expiry. That way, you can 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.
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 60 days’ notice to vacate if one of the following conditions is met:
1. A signed contract of sale exists.
2. You’ve formally appointed a licensed estate agent to sell.
3. A contract of sale is being prepared by a conveyancer or solicitor.
This means you don’t need a signed sale contract to issue the 60-day notice.
However, you do need one of the above formal steps to be in place.
BE AWARE OF:
If the tenant wishes to leave voluntarily, they only have to give 28 days’ notice, and they don’t need to provide a reason.
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..
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 a 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 apartment in Melbourne? 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 not professional advice. Check with your professional advisers, as these regulations can change without notice.