Need to sell, but have tenants?
Some homes were meant to be rented – apartment buildings and multi-family homes for example. However, the same is usually not true for single family homes, as most are bought by people who would like to move into them as their residence, not rent them out. Selling these homes can be challenging.
Tenants receive no personal benefit in any way from showing the home they live in. 99% of the time tenants will make showings difficult or deny them altogether. Don't count on them keeping the home show ready either!
Tenants are inconvenienced by showings and having to move unexpectedly by having their home sold is simply not in their best interest.
Tenant occupied homes take longer to sell and sell for less, if at all. If you wish to have your home sell quickly and for the most money – it is simply best to not have tenants living in the home. Timing your home sale after the tenants lease has ended and they have moved away is best. If that is not possible and you must sell anyway:
TOP 5 TIPS TO GET YOUR TENANT OCCUPIED PROPERTY SOLD!
Negotiate a month to month lease with the tenants so the home can be vacated prior to closing if necessary.
Have a conversation with your tenants about your intentions to sell and how this will affect them – prior to going on market. Set expectations for showings and for what condition the home should be in for showings.
Even the best tenants will likely still not be truly motivated to help you sell. If that is the case – INCENTIVIZE! Reduced rent or other financial incentives will probably work best here to get the tenants to cooperate with your efforts to sell the home – consider it a cost of sale. It will most certainly be cheaper than your first price reduction.
Give plenty of advance notice for showings. Yes – they likely have the legal responsibility to show the home with 24 hours written notice (depending on your lease), but once you must resort to forced showings, things have a tendency to go downhill. You can force them to show, but they may very well be present for the showing, or fail to keep the home in its best condition.
Tenants that are truly uncooperative to a point of violating the terms of their lease are best dealt with by an attorney.
It’s always easier when they’re on your side. For the best results try to understand your tenants position when “their home” is being sold and work to get their cooperation in advance.
Last Updated on January 19, 2022 by Minna Reid