Selling a tenanted property in Darlinghurst
What landlords need to know, notice periods, vacant possession, CGT, and how we manage the transition.
If you own an investment property in Darlinghurst and are thinking about selling, you are in a stronger position than you might realise. This guide covers your legal obligations, strategic options, and how Murray Property manages the full transition.
–
“Murray Property manages investment properties across Darlinghurst. When our landlords are ready to sell, we already know the property, the tenant, and the financial position — and we use that to structure a better sale.”
–
Can I sell while my property is tenanted?
Yes. In NSW you have the right to sell at any time. Your tenant’s rights are protected, but they cannot prevent a sale. The key question is how you sell, and the two paths are very different.
Vacant possession
Open to all buyers. Higher competition at auction. Typically stronger result.
Tenanted sale
Investor buyers only. Immediate yield from day one. Smaller buyer pool.
Your three options
Option 1 – Sell with tenant remaining
Best for: Investors seeking immediate income, strong lease remaining, unit properties with 4%+ yield
Trade-off: Excludes owner-occupiers. Smaller buyer pool = lower auction competition.
Option 2 – Give notice, sell vacant
Best for: Houses, maximising sale price, periodic tenancies, vendors with flexible timing
Trade-off: Carry vacancy period between tenant leaving and settlement. Requires planning.*
* You must comply with specific rules regarding the tenancy type. Information is based on general NSW residential tenancy laws as of April 2026. For specific legal advice, contact NSW Fair Trading or a legal professional.
Option 3 – Wait for lease expiry
Best for: Fixed-term leases, no time pressure, aligning with spring/autumn season
Trade-off: Market conditions at expiry cannot be guaranteed. Timing risk.
Help me choose the right option ↗
NSW notice requirements*
In NSW, selling a property requires providing a Contract for Sale containing specific prescribed documents (title search, zoning certificate, drainage diagram). If the property is tenanted, you must give the tenant written notice of intent to sell at least 14 days before marketing and at least 30 days’ notice to vacate (after exchange). NSW Government +3
Key Notice Requirements When Selling
- Contract for Sale (Pre-exchange): You must have a contract prepared by a solicitor or conveyancer that includes mandatory disclosures (zoning, sewer, compliance certificates).
- Tenant Notification (Sale): A landlord must give the tenant written notice of their intention to sell the premises at least 14 days before the premises are first made available for inspection.
- Property Inspections: You must make reasonable efforts to agree on inspection times with the tenant, who cannot unreasonably refuse, but you cannot hold more than two inspections per week.
- Tenant Notice (Vacating):
- Fixed-term Agreement: If you have exchanged contracts and the buyer requires vacant possession, you must give the tenant at least 30 days’ written termination notice. This notice can only be given once exchange occurs.
- Periodic Agreement: At least 30 days’ notice to vacate can be given.
- Notice of Sale (NOS) Form: A Notice of Sale form must be completed when a land title changes hands. This is usually handled automatically through https://help.pexa.com.au/s/article/Notice-of-Sale-NSW during electronic settlement, or submitted as an eNOS for paper transactions.
- Material Facts: You must disclose any “material facts” about the property, such as previous use for drug manufacturing, significant defects, or it being the site of a violent crime. NSW Government +6
Key Considerations
- Agent Agreement: If using an agent, you must sign an agency agreement that outlines their commission and estimated sale price.
- Swimming Pool: A valid swimming pool compliance certificate or non-compliance certificate must be included.
- Land Tax: Any outstanding land tax must be cleared. NSW Government +1
It is highly recommended to engage a licensed conveyancer or solicitor to ensure all notices comply with the Residential Tenancies Act 2010 and Conveyancing Act 1919
*Legal note
Figures are general guidance only, not legal advice. Confirm current requirements with your solicitor before serving any notice.
Capital gains tax, key facts
CGT will almost certainly apply to a Darlinghurst investment sale. Three provisions that Darlinghurst landlords most commonly benefit from:
50% CGT discount
If held more than 12 months, only half the gain is taxable for individuals and trusts.
The 6-year rule
If you ever lived there and then rented it out, the property may still qualify for the main residence exemption for up to 6 years.
Exchange date timing
CGT falls in the year of exchange, not settlement. Timing the campaign around financial year end can defer the liability.
What our landlord clients say
37/2 Goodlet Street, Surry Hills, NSW, 2010
Above and beyond.
‘Nicholas was proactive in assisting me throughout my home purchasing journey. He and his brother went above and beyond to answer any questions I had and were quick to assist wherever possible. While purchasing a house is a privilege and an incredibly exciting prospect, it is nonetheless stressful. I am incredibly thankful to Nicholas and Michael for their guidance, patience and thoughtful input. I can not recommend their services more highly.’
3 Chapman Street, Surry Hills, NSW, 2010
SMASHED IT!
‘Nicholas did an amazing job in selling our property. He took the trouble of arranging works on the property to present it for sale as it was very run down and in need of renovations. Nicholas suggested an auction and ran weekly, and weekend opens. The auction was a smashing success with our property selling for $95,000 above our reserve. We were stoked! Thanks, Nicholas, for all your hard work’
Frequently asked questions
Do I have to tell my tenant I’m selling?
You must give proper notice of each inspection. You are not legally required to announce the sale before formally listing, but in our experience, early, honest communication produces far better tenant cooperation throughout the campaign.
Can I sell on a fixed-term lease?
Yes, but you cannot terminate the lease early without the tenant’s agreement. The buyer must either accept the existing tenant, or wait until the lease ends. Plan your campaign timing around the lease expiry date.
Will the new owner honour my tenant’s lease?
Yes. A change of ownership does not affect the tenant’s rights. The new owner steps into your position as landlord and must honour the lease on exactly the same terms.
What is the price difference between vacant and tenanted?
For Darlinghurst houses, vacant possession typically achieves a significantly higher price as it opens the property to owner-occupiers. For apartments, the gap is smaller, investors are active in this market and a well-tenanted unit at 4.3% yield is genuinely attractive.
Can I claim the CGT main residence exemption?
Possibly. If you ever lived in the property before renting it out, the 6-year rule may apply. This is one of the most valuable provisions in Australian tax law for landlords, speak with a qualified accountant before committing to a sale timeline.