5 Important Tips to Sell a House with Tenants

Are you planning to sell a home that is occupied by tenants? You don’t want your tenants’ rights to be violated.

This post will give you tips on the best way of handling the process. You’ll also learn how to talk to your tenant about the sale, how to set up showings, and what kind of buyer to target.

Respect the rules

If you are selling your home with a tenant, there are a few more steps to take than if you were selling it yourself. State-specific rules apply.

Some states, for example, require you to give your tenant the opportunity to buy the property before showing it to anyone else. California allows the homeowner to enter the property at any time after the tenant is notified of the impending sale.

To ensure a smooth and successful sale, make sure to research the local laws in your area before listing, and that you adhere to them throughout the entire process.

Give your tenant a reason to be helpful

Your tenant will be more helpful if they are compensated for their inconvenience. You’ll want to make sure that the home is tidy when you are showing it (dishes put away, beds made, clutter removed).

Offer a discount to their rent or a token of gratitude for their assistance. If you are planning an open house, or have several showings scheduled for the weekend, pay to place tenants in nearby hotels for a couple of days.

Target Investors

Consider selling to investors rather than residential buyers if your tenants want to stay in the property.

Investors looking for turnkey investments will be delighted to find a house with reliable tenants living there. Renters will also benefit from this, and you’ll find the whole process easier.

Please be courteous when you schedule showings

The presence of tenants can make scheduling showings more difficult. You can simplify the process by offering showings without an appointment during times when you know that your tenants are at school or work.

You can also request that the buyers’ agents make an appointment at least 24 hours before so that you have plenty of time to notify your tenants. Think about how you’d want to be treated as a renter and show your tenants the same respect.

Your tenant will make the sale process much easier, whether you are selling to a buyer who is looking for an apartment or an investor seeking a new income source.

Consider Waiting

Consider these factors if you are unsure whether you should sell a home that has tenants living in it.

• You may want to hold off if the tenants are close to leaving. You will find it easier to show the house without tenants.
• You may want to delay if the tenants are especially messy. These conditions do not make for great real estate photography and showings.
• It’s best to list your house with tenants already in place if it is a great home for families, and summer. If you want to sell your home by the beginning of the school year, it’s best to list with the tenants in.
• Listings in late summer or early autumn suggest that you move forward with your tenant already in place. You want to close your escrows before Thanksgiving and Christmas, when the real estate market slows.

We recommend hiring an experienced realtor if your home sale is complicated.