To Sell a house with tenants can be difficult
To sell a house with tenants can be tough. The main thing that you DON’T want is an angry tenant. Angry tenants can be costly. If you are selling your property, be careful how you tell them someone will be entering their residence to view the property. You should give them at least a 24-hour notice any time you need to show the place. Many of our clients have found that offering a bonus to tenants for leaving the property in good condition really helps keep them from giving real estate agents and prospective buyer’s a hard time. Good tenant relationships are very important.
Keeping peace with the Tenants When You Sell
You are the landlord and owner, and as such, you may sell to whomever you please. It is VERY IMPORTANT to remember that the lease agreement usually remains in place. Lease agreements are important because in the event of a dispute, courts many times expect more from the landlord than they do from the tenant. Some landlords incorrectly assume they may break a contract and sell their property. We don’t advise this. You should honor the lease, and also realize that some local jurisdictions provide further protections for tenants, regardless what the lease agreement says. And always remember it is very important to give the tenants adequate notice before someone enters the property.
What If My Tenant is There without a Lease
If you don’t have a formal lease agreement, in most states the lease can be assumed to be month-to-month. If this case, you’re usually required to give a 30-day notice to vacate if you want your tenants gone before you sell or close. If the tenants have been there more than 12 months, you might be required to give 60 days’ notice, depending on the jurisdiction. Check with a local management company if you’re not sure. Again, we have clients who have been successful paying a bonus for the tenant to leave early with the property in good condition.
Tenant Cooperation when Selling a House
It often affects your price when a tenant is occupying the property. Inspections are not as thorough, rents can be below what the market can bear, and many new owners want to freshen up the property to yield maximum rents. Because of all this, tenant cooperation is a real plus for the seller. And there’s more. They have been in the house for a number of years, and are keenly aware of all that is wrong with the house. Many negative things they can be told a potential buyer. In fact, the tenant likely feels the benefit of devaluing the perception of the property to undermine the sale and keep his rents down. Also, don’t assume they would be glad to show the place. And if an eviction should be required, the sale of the property could be in jeopardy. And even if you’re not ready to sell your rent home, start planning now and shore up the relationship with your tenant, to be ready for the day you want to sell.
Your Best Bet
The best bet for you to sell your rent house without a hassle is to get the tenant on YOUR side. Here are some ways you can do this:
- Talk to them. They may know how to make this a smooth process.
- Absolutely give them adequate notice, 24-hour minimum.
- If your buyer wants the property vacant, consider paying all or some of your tenant’s moving expenses. We’ve found people rave about us when we offer help in this area.
- Consider a bonus for leaving the house in excellent shape. (We know of an owner who offered a $100 gift card and had an overwhelmingly positive reaction from his tenant.)
- Cash can overcome many stubborn tenants and convince them to leave it in good shape.
- Offer to pay a showing fee, and pay a bonus when the property sells.
Wrapping up, here are some pointers to remember when trying to sell a house with tenants.
- Choosing not to deal with a bad tenant promptly will cost you money.
- Time is money. The sooner you have the house under contract and sold, the sooner you can get on with life.
- Selling with a real estate agent while you have a tenant presents many obstacles to overcome. It can also get a tenant angry, which increases your risks. Sometimes this leads to damage to your property. (And they can do a lot of damage!)
- To sell a house with tenants can be very tough, especially if you need to evict and tenant, let us worry about it!
Finally, if you’re looking for an offer on your property, U.S. Direct Home Buyers can buy property with existing tenants! Get a free, no-obligation offer by filling in the form above. Call Us Today at (888) 284-9001!