The life of a landlord certainly isn’t for the faint of heart. You have several things to do on a daily basis. People are counting on you to provide repairs, field interest, close rental agreements, etc.
However, you may have come across an opportunity to sell one of your houses and get a nice profit for your efforts. There’s only one problem — you currently have tenants living inside of it.
Whether their difficult or easygoing, the tenants deserve your consideration during this process.
Here are some helpful tips on selling a rental property with tenants currently living inside of the home.
The current tenants might have been a pain in your behind during their stay, but the bottom line is that they reached an agreement with you to stay in your property for a certain amount of time.
Now that you’re interested in selling the property, you need to be as upfront and honest with them as possible.
Having them find out another way, such as someone showing up on their front door to request a tour, can lead to harshening the landlord-tenant relationship.
Be sure to discuss things such as the ideal timeline for you to sell the house, any renovations you’ll be making for staging purposes, etc.
Remember, communication is key during this process. Like it or not, your current tenants will play a huge role in the selling of your property. The more that you keep them in the loop, the better this scenario will play out.
A big part of the process will be setting your property up for showings to potential buyers. Understandably, the buyers will want to tour the house before investing thousands of dollars into it.
Unfortunately, this probably puts you in a place of mediation. You’ll be the main form of communication between the agent you’ve hired to sell your property and your tenants.
This is another area where communication between you and your tenants is critical. You should schedule tour times around their lives, not the other way around.
Sit down and ask them what times of the day are acceptable for tours. Are there a few hours you can schedule each Saturday (the best day for home tours) for them to be out of the house?
Once you have that figured out, you need to report the schedule back to your listing agent. They’ll be sure to communicate and prioritize tours based on the schedule you bring back to them.
Did you know that each state has its own set of guidelines for the relationship between tenant and landlord? They’re called Landlord-Tenant Laws, and you should follow them to the “T”.
If you so much as disobey one of these laws in how you handle the selling of your property, then you’re susceptible to a lawsuit.
Granted, those cases are almost never black and white, but in an effort to avoid that situation completely, check to see what the rules are and follow them step by step.
Remember, your tenant didn’t sign up for this. As such, you want to make sure the process affects their livelihood as much as possible.
There are certain pieces to selling it that can make things difficult for them if you go about selling your house the traditional way.
For example, while you’re giving tours of your home, you want to make sure the inside is clean and the lawn stays trimmed and neat. Considering the tenant has to have a career to pay your rent, they won’t have the time to keep up with that.
Because you’re selling the property, it falls on you to provide cleaning services and landscaping services to take the load off of them. If that sounds too pricey, then offer to mow the lawn yourself.
Don’t be surprised if the tenants aren’t thrilled at your decision to sell the property.
They might completely understand the thought process behind why you’re doing it, but it still throws a wrench in their plans. So they won’t be overly eager to help you sell the house they’re currently living in.
For that reason, it’s always a good idea to incentivize their cooperation during the selling process.
For example, if you have an interested buyer that can only do a tour at a certain time, then it’s on you to find a way to make that work. Try things like giving them a gift card to a restaurant or simply paying for a cup of coffee if they leave the property for a bit.
Then there are other incentives to ensure cooperation during the entire process. You can offer a discount off of their monthly rent if they comply.
While that might be hard for you to swallow at first, remember, as soon as your sale goes through, you’ll make all of it back and more!
The most important thing when selling a rental property with tenants is to be considerate of their livelihood. Think of different ways to keep them happy and let them know you appreciate their understanding and flexibility.
Be sure to read this article on why selling your home to an investor is a much better option for your situation. Consider all the information in making your decision.
For more inquiries, fill out the online form on our about us page and we’ll be happy to offer you a fair cash offer!
Lisa is a local real estate investor in Austin Texas.