🎧This week, the Property Trio tackle a great listener question.

In this episode, Dave, Cate and Mike dive into a listener question that goes beyond spreadsheets and straight into the reality of property investing….. the emotional toll of a difficult tenant.

John’s story will feel familiar to many. A long-held investment in Ballarat with strong fundamentals on paper, but an ageing home and a tenant who’s frequently in arrears. It’s the kind of situation that slowly chips away at confidence and has investors asking the big question: is it time to sell?

The Trio unpack how common this scenario really is. Cate explains that while strategy is often built on data like growth and yield, the ownership experience matters just as much. A stressful tenancy can distort decision-making and push investors to rethink otherwise sound assets.

From there, the conversation turns to strategy. Should John sell the property as-is, or remove the tenant and invest in some cosmetic improvements? Cate emphasises the importance of buyer appeal, noting that owner-occupiers often pay a premium; but only if the property presents well. A poor tenancy, on the other hand, can limit competition and drag down the result.

Mike brings a numbers lens, highlighting the hidden cost of holding. Lost rent, uncertainty, and missed opportunities all add up. Sometimes, the real risk isn’t selling. It’s holding on for the wrong reasons.

The Trio also tackle the common trap of overcapitalising when preparing a property for sale, sharing real-world examples of renovations that cost more than they add in value.

This episode reinforces a key message: investing isn’t just about the asset. It’s about making clear-headed decisions when conditions, and emotions, change.

….. and our gold nuggets:

Cate Bakos’s gold nugget: I’d ask this important strategy: “Does the property still fit the long term strategy?” If the answer is yes, I would be working through the best way to handle the arrears issue with the tenant.

Mike Mortlock’s gold nugget: Mike encourages John to look closer at the Ballarat data and ask himself if he really wants to sell the asset. “I never like the idea of a person selling a property because of a tenant.”

Related episodes:

Ep. 68:  Renovating – tips and mistakes to avoid

Ep. 70:  Renovations – part 2: planning for success

Ep. 102: How to determine property market values by using comparable sales

Ep. 212  Unlocking the Secrets of Inspecting Property – Expert Strategies for Assessing Properties like a Pro

Ep. 350  Selling Property Smarter – Maximise Your Sale Price Without Overcapitalising on Renovations or Improvements

Upcoming episode #357: Investor Tax Trap – The Costly Depreciation Mistakes You Don’t Know You’re Making