Selling a home is a challenge. However, landlords will agree that selling a tenant-occupied property is way more challenging than selling a vacant property or your own house. It’s easy to make up your mind and get ready to sell your house. However, the task is not easy when you have an occupied house.
Read this article if you’re planning to sell a home with tenants.
Selling Rental Property
Understand the Lease Terms
It’s time to read your agreement. The tenant has a right to live in the house until the lease expires. Ideally, you should postpone the sale and wait for the contract to end. It’s best to inform the tenant that you won’t be renewing the lease, this time. Under challenging situations, you need to look for an early termination clause in the contract. Depending on your contract, you may have to pay the penalty to end the agreement earlier.
You’ll need to send a written notice if you don’t have a fixed-term lease. I suggest you write a letter explaining the exact date when your tenant should leave the house. Explain that you’re selling the home and the tenant has that many days to find an alternative option.
You Can Sell Rental House Right Now
Sympathize with Your Tenants
Your property is their home.
You’re selling the house. That’s disturbing news for the tenants. They have to find a new place. Paying moving costs, deposits, and settling into a new environment can be challenging.
Get their Cooperation
You have to make a decision. You can sell a house with tenants, or you can wait until the home is vacant. The latter option is better because it gives you more control over the process. In either case, you need the cooperation of your tenants.
You’ll need to showcase your home to prospective buyers. The house must be clean & organized. If that’s not the case, selling the house can become a hassle. You can try a few options.
Hire a Cleaning Service
Make the job easier for the tenant. Hire a cleaning service. Inform the residents that each week or twice a week, someone from the cleaning company will visit the house. They will help clean the area so that cleaning is not a burden for the tenants.
- You can offer to forgive a part of their monthly rent. That can be the right motivation for the tenants. As a landlord, you can give them some options.
- You can help the tenants move out. That can be done by paying the costs or hiring a moving company for them.
- Protect their deposit. You need to return it in a timely fashion. An interest rate is also due if you kept the deposit for more than a month.
- You can ask your tenants, “how can you make the move easy for them?’
Sell Home to an Investor
If it’s challenging to sell a tenant-occupied property, you can sell to a real estate investor. A reputable cash buyer can purchase your property as-is.
An investor buyer can purchase the house, and your tenants don’t have to leave the premises. It’s like selling turnkey Real estate. The buyer will assume your contract with the tenants. This option has a few benefits for all parties.
- The tenants don’t have to leave the house. Their lease will remain active with the same terms. Later on, the new landlord and residents can choose to renew their contract.
- The investor gets an income-producing property. It can take time to find a paying tenant. You’re providing that opportunity, so the investor starts earning from day1.
- You get the opportunity to sell your home as-is. You don’t have to evict your tenants. There is no need to repair the house. The company is buying your home as-is so that you can save money on repairs.
It’s possible to sell your home as-is to a local house buyer.