Yes, you can sell a rental property in New Zealand with tenants still living in it, and many Auckland landlords do. You must tell your tenants in writing as soon as you can once the property goes on the market, and you need their permission for photos and viewings. The type of tenancy decides whether you can sell it empty.
Do I have to tell my tenants I am selling the house?
Yes. Under section 47 of the Residential Tenancies Act, once the property goes on the market you must tell your tenant in writing as soon as you can.
You do not have to tell them before it is listed, but you can, and I usually suggest you do. I also suggest handing the letter over in person so you can talk it through.
What are a tenant's rights during open homes and viewings?
You need your tenant's permission before buyers, agents, registered valuers or building inspectors go through the home. Tenants cannot unreasonably refuse, but they can set reasonable conditions. According to Tenancy Services, a tenant can:
- limit viewings to certain days and times of the week
- refuse open homes or an auction held at the property
- ask that buyers come by appointment only
- be there for every viewing, including open homes
Photos need permission too, and tenants can refuse photos of their own belongings, so I plan the photo shoot with the tenant. Once you agree a viewing schedule, write it down and have everyone sign it.
Can I sell my rental if the tenants are on a fixed-term lease?
Yes, and the fixed-term tenancy carries on. You cannot end it early just because the property has sold. The buyer takes over as landlord on the same terms.
If a buyer wants the home empty, your options are to agree an early end with the tenant (in writing), set a settlement date after the fixed term ends, or sell with the tenancy in place.
For fixed terms ending on or after 1 May 2025, either side can end the tenancy on its end date without giving a reason. The written notice must be given between 90 and 21 days before the term ends. If nobody gives notice, it becomes a periodic tenancy. Tenancy Services explains the fixed-term rules.
How much notice do I give a periodic tenant when I sell?
As at October 2026, the Tenancy Services page on ending a periodic tenancy sets out two main notice periods for a landlord:
- 42 days' written notice if the property has been sold under an unconditional sale and purchase agreement that requires vacant possession. Vacant possession means the buyer gets the home empty on settlement day, with no tenants living there. The notice must state the reason.
- 90 days' written notice, with no reason needed. This is the simplest option if you want the home empty before it goes on the market.
The notice must be in writing, give the address and the end date, and be signed. Allow time for delivery: a notice left in the letterbox counts as received two working days later, and a posted one on the fourth working day. A tenant who wants to leave must give you at least 21 days' written notice, unless you agree to a shorter time.
Should I sell my rental with tenants in place or empty?
It comes down to who is most likely to buy it.
Tenanted, to an investor. Investors like a home with a good tenant and a rent history, because the income starts on day one. You keep receiving rent while the property is on the market. The trade-off is that you are mainly selling to investors.
Vacant, to a home buyer. In family suburbs like Ellerslie and Papakura, many buyers are looking for a home to live in. An empty home is easier to style and show, and open homes can run freely. The cost is lost rent while it sits empty.
Which gets the better price depends on the property and the buyers around at the time. A free appraisal is the easiest way to see both options side by side for your home.
How do I time the tenant's notice with the settlement date?
If the buyer wants the home empty, the 42-day sale notice can only be given once the agreement is unconditional. So the settlement date needs to fall at least 42 days after that, plus delivery time for the notice. I work this out with your lawyer before a settlement date is agreed.
What happens to the bond and rent when a tenanted property sells?
You collect rent up until settlement. Any rent the tenant has paid in advance past that date is passed to the buyer. The normal rules on rent increases still apply during the sale.
A tenant can ask for a rent reduction during viewings, but it is your choice whether to agree.
The bond stays in place and moves across to the buyer as the new landlord, so the tenant does not pay a new one. If you need to claim some of the bond (for example for unpaid rent or damage), you must do it before the settlement date, or the possession date if that is earlier. If Tenancy Services holds the bond, you and the buyer each fill in a change of landlord form, or the buyer can transfer it online in Bond Hub (the Tenancy Services bond website). You must also tell the tenant who the new owner is and when they take over.
Do I pay tax when I sell a rental property in NZ?
It depends on when you bought it and why. For sales on or after 1 July 2024, the bright-line test generally covers a property sold within 2 years, measured from when the title transferred to you to when you sign the sale agreement. Other tax rules can still apply outside that period, so talk to your accountant or tax adviser before you sign anything.
I cover the tax basics in should I sell my house or rent it out, and the parties' tax proposals in selling before or after the election.
What does a property manager do when a rental is sold?
A good property manager keeps the tenant informed, books viewings around the agreed times, gives notices correctly and handles the bond paperwork. If you already use one, I will work alongside them. If not, our property management team can help, including for a buyer who wants to keep the tenancy.
If you live overseas and are selling from there, read my guide to selling NZ property from overseas as well.
Where to from here?
If you are thinking about selling a rental, I am happy to look at the property and the tenancy. I can then show you what it could sell for, both tenanted and vacant. Book a free property appraisal or get in touch, and we can work out a plan that suits you and your tenant.
Questions landlords ask me about selling a tenanted property
Can my tenant refuse open homes?
Yes. A tenant can refuse open homes and auctions at the property and ask for viewings by appointment only. They cannot unreasonably refuse all access.
Can I end a fixed-term lease because I have sold?
No. A fixed-term tenancy cannot be ended early just because of a sale. You can agree an early end with the tenant in writing, settle after the term ends, or sell with the tenancy in place.
How much notice do I give a periodic tenant when the buyer wants it empty?
As at October 2026, at least 42 days' written notice once the sale is unconditional and the buyer needs the home empty. The reason must be in the notice.
Do I have to give my tenant a rent reduction during the sale?
No. A tenant can ask for one in return for open homes, but it is your choice.
What happens to the bond when I sell?
The bond moves across to the buyer as the new landlord. Any claim on the bond for unpaid rent or damage must be made before settlement. If Tenancy Services holds the bond, you and the buyer fill in a change of landlord form.
This article is general information about selling a tenanted property, not legal, tax or financial advice. For your situation, check with Tenancy Services or talk to a lawyer.
