5 Tips for Selling a Tenant-Occupied Home
Ready to sell your tenant-occupied home? If so, there are many PROs and CONs to selling a tenant-occupied property. In some cases, it’s best to list your home after the tenants move out, but sometimes that is not an option. So when your home is tenant occupied and you need to sell how do you get the tenants on board? Below are 5 tips for selling a tenant-occupied home.
Top 5 Tips for Selling a Tenant-Occupied Home
1. Communicate
The first step to selling a tenant-occupied home is to have a conversation with the tenant. You’ll want to put their mind at ease and let them know your plans to sell the property. During the conversation make sure to let them know their lease will be honored and you’ll be targeting investors to purchase the property or a buyer who’s willing to wait until their lease expires. It’s imperative you reassure them that they won’t be homeless. If you don’t communicate your intentions they might make it impossible to sell your property.
2. Create a Showing Schedule
While only allowing showings on certain days within certain time frames isn’t ideal, it may be the best option. By creating a showing schedule it accomplishes two things. One, it shows the tenant you value their time and want to inconvenience them as little as possible. Two, it puts their mind at ease knowing they won’t be bothered 24-7 with showings. When a tenant feels like you care about them they’ll be more likely to adhere to the set showing schedule and not deny access. This will make selling a tenant-occupied home a lot easier.
Selling a tenant-occupied home can be an uphill battle, but by following these 5 tips it will hopefully become a lot easier. #homeselling3. Offer Money
If your tenant is going to be cooperative with the sale of your home it probably won’t be necessary to offer them a cash incentive. However, if your tenant is difficult offering to reduce their rent may entice them to cooperate with all showings.
Instead of reducing their rent, another option is offering to pay for all or a portion of their moving expenses. Moving can be very expensive, so offering hundreds of dollars or even thousands of dollars towards moving can be very motivating for some tenants. Adding incentives when selling a tenant-occupied home can make things a lot easier.
If you decide to do any type of cash incentive make sure to put the terms in writing. All of the tenant’s obligations should be clearly outlined and all parties should sign this agreement.
4. Offer a Cleaning Service
If the property is not “show ready” offer to pay for a weekly or bi-weekly cleaning service while the home is actively for sale. By doing so it might motivate them to tidy up and keep the property clean in between showings.
Oftentimes it’s a lot easier for tenants to keep the home show ready when they don’t have to spend time scrubbing floors and bathrooms. While cleaning services don’t come cheap you may only have to do it a few times before the property is under contract. Spending a few hundred dollars won’t only make selling a tenant-occupied home easier but it will show better as well.
5. Handle Showings
One of the many benefits of hiring a top Realtor to sell your home is they will coordinate all of the showings. Whether they do it personally, use a call center or an online scheduler.
However, when selling a tenant-occupied home it’s usually better if the seller schedules all showings with the tenant. By doing so they are less likely to deny a showing if it’s coming for you as opposed to a 3rd party, like your Realtor or a showing call center.
Final Thoughts
Selling a home with a tenant in place can be just as difficult, if not more difficult than selling a home with kids, or pets. So you’ll want to evaluate whether or not selling your tenant-occupied home is going to be the right move. If you have a very difficult tenant in place they could easily cost you tens of thousands of dollars. In that case, it would be best to list the house for sale when their lease is up.
However, not every landlord has the option to wait, and if that’s the position you’re in you’ll want to follow these steps to make the process easier. You’ll also want to hire a top Realtor who has experience selling a tenant-occupied home, it’s quite a bit different than selling an owner-occupied home.
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Selling a tenant-occupied home can be an uphill battle, but by following these 5 tips it will hopefully become a lot easier. #homesellingPopular Questions About Selling a Tenant-Occupied Home
Do I have to pay rent if my landlord is selling the house? If your landlord is selling the house you are renting, your obligation to pay rent typically remains unchanged. Rent payments are based on the terms of your lease agreement, which typically continue to apply until the lease expires or is terminated according to its terms.
Even if the property is on the market, the landlord is generally still entitled to collect rent from you during the selling process. However, local laws and regulations may vary, so it’s advisable to consult your lease agreement and familiarize yourself with any specific rights or provisions that apply in your jurisdiction.
Do I have to give my tenant notice of intent to sell property? Yes, as a landlord, you typically need to give the tenant notice of your intent to sell the property. The specific requirements and timeframes for providing this notice can vary depending on local laws and the terms of your lease agreement.
In many jurisdictions, landlords are required to provide written notice to tenants informing them of their intent to sell the property. The notice should include the proposed date of sale, any potential disruptions to the tenant’s occupancy, and any rights the tenant may have during the selling process. It’s essential to consult the applicable laws and regulations in your area and adhere to the legal requirements to ensure a smooth and lawful transition during the sale of the property.
What are a tenants rights when landlord sells property with no lease? When a landlord sells a property with no lease in place, the specific tenant’s rights can vary depending on the local laws and regulations governing landlord-tenant relationships. In many jurisdictions, tenants without a lease are considered month-to-month tenants, and they are entitled to certain rights and protections.
Typically, the tenant has the right to receive reasonable notice before being required to vacate the property. The length of notice can vary, but it is generally considered fair to provide at least 30 days’ notice. During this period, the tenant can continue to occupy the property and is obligated to pay rent as agreed upon. It’s important for tenants to familiarize themselves with the specific laws in their jurisdiction to understand their rights and obligations when the landlord sells a property with no lease in place. Consulting with a local housing agency or legal professional can provide further guidance and clarification.
Can a tenant buy the home they’re renting? Yes, in many cases, tenants have the opportunity to purchase the home they are renting. If they enter the lease with the intent to purchase the home at some point this arrangement is commonly known as a “rent-to-own” or “lease-to-own” agreement. It involves a tenant entering into a contract with the landlord, which allows them to rent the property for a specific period with the option to buy it at a later date. The terms and conditions of the agreement, including the purchase price, the length of the rental period, and the portion of rent that may be applied towards the purchase, are typically negotiated between the tenant and landlord.
Now, if the landlord makes the decision to sell the property mid-lease they may see if the tenant is interested prior to being listed on the open market. It’s at this point the tenant decides the terms they’re willing to offer; price, escrow, contingencies, contingency periods, and closing date.
About the Author
Top Wellington Realtor, Michelle Gibson, wrote: “5 Tips for Selling a Tenant-Occupied Home”
Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell, or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.
Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres, and more.
5 Tips for Selling a Tenant-Occupied Home