Homeownership has long been considered the American Dream, and it’s one every American should feel confident and powerful pursuing. But owning a home is also a deeply personal dream. Our
How To Sell A House with Tenants
Dated: December 22 2021
Is it possible to sell a house with tenants residing? Is the process going to create and legal trouble? Will the process be more complex when compared to selling off a vacant home? These are just some of the questions that go through the mind of landlords while they are thinking of the prospect of selling off a tenanted property.
Actually, the process isn't as daunting as it might seem. In fact, it is pretty simple, and one can go about it without any legal consequences. This guide covers everything one needs to know about selling a tenanted property.
Reconsider the options!
"Selling your house with tenants looks like a challenging task? It isn't really so when you do it the right way!”
Everyone knows how hard it is to sell a property. Not just selling but buying can be a daunting task as well. With that said, is it necessary to go ahead with the process? Reconsider the options and think of renting the property again instead of selling it off. With a renting situation, there is some passive income rolling into the bank account for the rainy days. However, once decided to sell it off, some things should be kept in mind.
1. Keep Legalities in Mind
To make the process easier and safer for both homeowner and tenant, always keep the legalities in check. One crucial legitimacy while selling off a tenanted property is to alert the seller of the termination of the tenancy. This termination of the lease legally is crucial. Remember that sometimes this termination process can go on for a long, so it's always to get a head start to speed up the process.
2. Notifying Tenants
The process of selling the house should be painless and stress-free for all parties involved. To do so, make sure to notify the tenant of the sale plan. Informing the tenants of the deal reflects basic courtesy and diplomacy, which will keep the tenant in good terms.
3. Consider Tenants as Buyers
Tenants are often not financially able to purchase a house (and hence are renting it.) However, it is always wise to offer the tenants an opportunity to buy the house. They should be given first dibs on the house just as a courtesy. This will let the tenants know that the house is on sale, and if their pocket allows, they can buy it.
When talking with the tenants about the sale of the house, start explaining the reason behind the deal and then market them the opportunity to purchase it.
4. Establishing Price
Once all the bases with the tenants are covered, move ahead and set the price for the property. This can be a tricky process. Thus, keep some time to decide the selling price. To start this process, the easiest way is to talk to an agent and let them appraise the property. Real estate agents provide a fair idea of the market price. Another great option is to get an independent valuation of the property to ensure a fair deal.
5. Try Real Estate Agents and Professional Services
When selling property, there is a lot of ground to be covered. Add a tenanted property to the equation, and it results in an even stricter house to sell. However, a real estate agent can guide well through the hurdles in all such times.
While it is common knowledge that real estate agents and companies can help market the property, that is not all they do. These individuals are also responsible for finding the right buyers, setting the appropriate price, identifying issues earlier, offering legal representation, and more. What's more, all the while, they will have your best interests in mind.
6. Schedule Viewings Wisely
When it comes to selling a tenanted property, the process might be slightly challenging as not many people like people living in the house they wish to own. With tenants actively milling around in the place, the viewing process can be even more challenging.
To tackle this issue, start alerting the tenants of the viewing at least 24 hours earlier and in written format. Also, get consent from the tenant to carry out the viewing session, so be nice to them and pick a convenient time for both parties.An empty house for a couple of hours should be used to host as many prospective buyers as well; This way, there will be no need to constantly ask the tenants to move; instead, show the house to as many people as needed.
7. Keep A Well-Kept House
This is a rule that applies regardless of whether selling a vacant property or one with tenants living in it. No potential buyer is going to be wooed by dirt and clutter all over the place. To market the house correctly, make sure that it is in good condition and well-kept before the viewings occur.
If the tenants cannot keep the house clean. Get professional cleaners to do the job. This will remove the burden of cleaning from the tenants. From yard service to basic upkeep, these tiny things can help make the sale possible.
8. Aid in House Searching Process
Once the property is up for sale, the chances are that the tenants will be left helpless with no particular idea of where they will be moving to next. In all such times, it is essential to offer a helping hand. It does not call for doing anything out of the ordinary. Ask a real estate agent or friends and family about potential renting locations and suggest them to the rentals. Advise them about local listings to make the process of transition easier for them.
9. Stay Updated on the Rent Situation
Lastly, once it is decided to get the tenants out of the equation, make sure they are caught up on the rent. Often, tenants can get bitter even after some courteous acts and not pay rent on time or at all! To avoid any hassles of eviction or court action, keep probing the tenant of the due date and get them to pay their rent on time.
Selling a tenanted property might be slightly complicated as opposed to selling a vacant home. However, it is not impossible. Be courteous and respectable. Keep the tips mentioned above in mind to make the process smoother for all the parties involved in the sale.
Real Estate Sales Leader with over 15 years of diversified experience in real estate sales, property development, and business consulting. With a keen eye to spot real estate opportunities and a natur....
Latest Blog Posts
This home is located in a serene, wooded neighborhood with amazing mountain views. With 3 Bedroom, 2 Bathrooms, it is perfect for anyone looking to take their first step into the world of
When it’s time to purchase a home, one of the first things you should do is get pre-approved for a home loan. In this highly competitive market, mortgage pre-approval is “the ace up your