Knowing how to sell a house is difficult to begin with. But to sell a house with tenants does not have to be a complicated process. A lot of owners worry about selling a house when there are tenants involved. However, there is might not need to be a worry about tenants if you follow a few simple rules.
If the property is a multi-family, many buyers would love to buy a house with tenants as they have an income right away. This is a growing market within the real estate industry in the whole of United States. The majority of banks offer low-interest rates, and investors are looking for other ways to invest their money. One of the best ways to invest your money today is to put it in real estate.
If you are selling a single family home with tenants if may be a bit more cumbersome. Selling a home with tenants is all about cooperation from those folks who occupy your home. Any real estate can tell you it will be extremely difficult to sell your house if there is an uncooperative tenant involved.
An Excellent Real Estate Agent
When you do want to sell a property with tenants, it would be a good idea to contact a real estate agent who has experience in this kind of sale and access to MLS (here’s a quick guide on understanding MLS). Most real estate agents who have never dealt with selling a property with tenants, could be in over their head. If you are considering a career as a real estate agent, you might want to learn the tips and tricks about how to become a real estate agent so you can start on a solid foundation.
Tenants who are upset that the place they call home is being sold can be down right nasty. Unruly tenants will do everything possible to make the home impossible to sell. From turning down showings to keeping the place looking like a tornado came through are just two quick examples.
On the other hand, if you are selling a non single family an agent who specializes in these kind of properties could have a waiting list of clients that would be interested in purchasing your home. This is a scenario that’s possible when selling a house as is in California and other states.
Using the right agent gives you the best chance to achieve the best price for your house or property. At the same time, it will provide you with peace of mind if the agent has experience dealing with tenants.
Inform the Tenants
If there are only about one or two months to run on the lease, there is no point in telling the tenant you are going to sell the home. Just wait until about a month before the lease runs out, prep the property for sale and list the property with a real estate agent at this point.
However, if the lease has longer to run, you should tell the tenant. Let them know that you are selling the property and why you are doing so. You need to reassure them that the tenancy agreement will be passed on or that they will be given the right amount of notice.
Follow the Rules and Guide Lines
Find out what standards and guidelines apply in the state that the property is located in. Most states in the US have different rules when it comes to selling a tenant occupied property. Make sure that you follow them and don’t make any mistakes. For example, you might need to use a bill of sale for this deal or you might need any other specific document and it’s important to be aware of the details. This is the kind of matter that can end up in court.
To make sure that everything works out in your favor, it is a good idea to consult a real estate attorney before listing the property. Doing so will make sure that both you and the tenants are protected. After all, you don’t want to end up with any unnecessary legal bills.
The Ongoing Sales Process
To sell the house successfully with the tenants still resident in it, you need to keep them fully informed. The best way to do that is to make them feel that you are on their side. One of the requirements you should discuss with your real estate agent is giving the tenant 24 hours notice.
Giving ample notice is a reasonable expectation when someone occupies your home.
At all times, it is crucial that you communicate with them. Don’t allow someone to enter the property without them being informed. It is better all showings of the house include mandatory acceptance by the tenant. Remember that it is your house and their home.
If you think about it like that, the sales process will be much easier. Both you and the tenants will be happy. You will find the property will be easier to sell when the tenants are on your side.
Selling The Home to Your Tenants
Should you offer to sell your house to your tenants? You be surprised how many homes are sold in this way. It is an excellent way to sell a house. The tenants will know everything about the property and will have a track record of having lived there. It may even be easy for a tenant to get a bank loan on the property.
Together you can prove that they have paid all bills on time, and this will make any bank look at the situation more favorably. The probability is probably fairly high they have a good credit history if no rent has been missed and you don’t notice any extravagant purchases. If you choose to go down this route, make sure that you explain all of the terms and conditions of the sale to the tenants at an early stage.
It would be best to get a qualified real estate lawyer involved as soon as possible to make sure that you follow all correct legal guidelines.
To sell a house with tenants is now very common. As long as you follow the correct process and respect your tenants’ rights, you have absolutely nothing to worry about.
Additional Helpful Tips For Selling A Home With Tenants
Check out the following additional tips below:
- Offer your tenants the first right of refusal. This means that you will give them the opportunity to buy the house before you offer it to other buyers. This can be a good way to show your tenants that you appreciate them and to give them a chance to stay in their home forever.
- Consider offering to help your tenants find a new place to live. This can be a good way to make the selling process easier for everyone involved. You can help your tenants search for a new home, or you can offer to pay their moving expenses.
- Be prepared to negotiate on the price. Selling a tenant-occupied home can be more difficult, so you may need to be willing to negotiate on the price to get a buyer.
- Be patient. It may take longer to sell a tenant-occupied home than a vacant home. Don’t get discouraged if you don’t get an offer right away.
- Stage the home. Even though there are tenants living in the property, it is still important to stage it so that it looks its best for potential buyers. You can do this by decluttering, cleaning, and making minor repairs.
- Take professional photos. Professional photos will help your home stand out from the competition online and in print.
- Price the home competitively. It is important to price your home competitively, especially if it is tenant-occupied. You can use a real estate agent to help you determine the right price for your market.
The Best Option if Your Able
By far the best option of selling a home is to have no tenants involved. If you have the time and inclination, you should wait until the tenant vacates the property. Many real estate agents are going to tell you how troublesome it can be to sell a home there are tenants. Unfortunately, they are being truthful.
