How to sell your rental property with tenants?
Selling an occupied house can be easy or difficult, depending on the current tenant’s cooperation. As
a homeowner, you will solely have to bank on their ability to show off your house in the best way possible, which leaves you a bit vulnerable since you have little control over their actions.
Should I wait until the lease expires?
There is one main problem that you may encounter if you decide to do so. Your house may stay in the market for too long without getting a prospective buyer, which translates to no rent within this period. Selling the house while it still has a tenant gives you the ability to gain financially as you look into getting a good deal from the real estate market. If however the current tenant has messed up the walls or leaves their place dirty, you may have to let them go, do the repairs then sell your home in the best form possible.
How to sell a house with a tenant.
Strive to have a good rapport with your tenant. You need them to keep the place neat and well taken care of so you may increase your chances of getting a good price on your property. In this scenario, you will literally be banking on your tenant’s kindness. In real estate, the presentation is everything and the better your tenant presents your house, the better the results for you.
In some cases, the tenant may not be too happy that you are selling the house while they are still in occupancy. If you feel like they will not be able to cooperate well, it would be best if you just waited until their lease expires. Although you will not get the rent, you will avoid the chances of making a low priced sale based on bad presentation.
Tips on how to get the tenant to cooperate.
Nobody likes the idea of having strangers poking around their home, or agents making endless calls about viewings. This makes most tenants uneasy, so the minute they hear that you are planning to sell they would find a new place and move. You, however, need to keep them a bit longer since when a place has furniture and is well arranged, it provides good visuals to the prospective buyer.
- Be very open with your tenant about your intentions to sell the house. You may offer to lower their rent for the next two months or so just to get them to stay a bit longer.
- Guarantee them enough time in your house until they find a suitable place to move to so that in their hurry to leave they don’t just move into a house they are not comfortable with.
- Since they will be helping you sell your house, you may offer to cater for their moving costs once they have found a good place to move into.
- Some landlords may get an interior designer to help a bit with arrangement and presentation, but if the tenant is not comfortable with this you must politely accept their standards.
Remember, a happy tenant would present your house to its full potential, while an unhappy one may make a mess of things. You cannot really blame them since they are paying rent and have a right to leave their home in whatever state they wish. It all narrows down to how well you are able to relate. Let them in on the deal, with a few benefits that would come with their cooperation.