When the housing market is slow, some homeowners decide to rent out their homes instead of sell. This allows them to collect income until the market improves and they can get a fair price for their house. However, as the housing market continues to rebound, there are now a large group of homeowners who are looking to sell a home that is currently occupied by tenants.
Though many choose to wait until the lease has expired to sell the home, others cannot afford to have their home vacant for a few months during the transition. Selling a house with tenants in it can be tricky, but it is not impossible. Below we provide some tips for selling a home with tenants:
1. Check your local tenant-landlord rules.
The first thing that you need to do before you begin this process is check your local tenant-landlord rules, which vary from state to state. This will help you find out what you can and cannot do when it comes to selling a house with tenants in your area. You might also consider consulting with or hiring a licensed realtor who has experience with these types of sales.
2. Communicate your plan to tenants early, and ask if they want to buy the home.
Always consider the tenant’s point of view when you are discussing your intentions with them. It is important to show that you understand their situation, but also be firm when explaining your plan. Clearly communicate that this does not mean that you are kicking them out on the street, and make sure that you discuss how many days they will have to move after the contract is signed.
3. Set up protocol for how and when the home will be shown.
It is important that you communicate protocol early for how and when the home will be shown to prospective buyers. Some tenants may be hostile, especially if they do not want to move. This can make the process a lot more difficult, especially when it comes to showing the home. Work with the tenant to create a schedule and establish clearly defined protocol to make the process go more smoothly.
4. Provide incentive to get tenants to cooperate.
It is important to make sure that the home is clean and unoccupied when you are showing the property to prospective buyers. This can get complicated when the home is occupied by tenants. Providing some sort of incentive will help ensure that your tenants are cooperative during this process. You might offer a monetary compensation for every time that the house is shown or perhaps 50% off the tenant’s monthly rent.
5. Make the process as easy for the tenant as possible.
Remember, for the tenant, the property is their home and not a commodity. You are not only telling them that they must move, but you are also asking them to keep the home tidy and vacate it when there is a showing or open house. Show your appreciation for the tenant’s cooperation and try to make the transition as smooth as possible. For instance, you might rent the tenants a hotel on the weekend of an open house or offer them a gift certificate for dinner during times when the home will be shown. You might also consider helping them find a rental agent to make the move easier on them.
Time is money, and the faster you can sell the property, the less time and money you are wasting. Though it may be easier to wait until the lease expires to put your home on the market, with enough planning and tenants who are cooperative, you can sell your home without having it sit vacant for months.
If you want to sell your house with tenants still in it, Express Homebuyers buys houses as-is and can pay you cash for it. Call us today at (877) 804-5252 or fill out the form below.