One of the many dilemmas of landowners may be the selling of their property. But a tougher challenge is selling the property with tenants still occupying the space.
Landlords sell their properties for various reasons. Some find that the maintenance requirement of their rental property is just giving them stress, while others could no longer commit to the time and resources needed to manage the property. Whatever your reason may be, selling a house with tenants can be snap. Home buyers and real estate consultants are available to ease the burden of selling your property.
When selling a property with tenants, you as the owner has two choices. You may opt to wait for the lease to expire or pursue the selling process even before the tenants leave. But having existing tenants while selling your house can be an advantage. It all depends on your relationship with them.
Here are some pointers to consider.
Communication
Convey to your tenants your intention of putting the property on the market. Letting them know of the situation will prepare them for the transition. Giving them ample time to make the change will be beneficial to the parties involved. Since tenants are not pressured into moving within a short time, their attitude towards you and the property will not be compromised. It’s much more challenging to handle disgruntled tenants and may entail more repairs or maintenance on the property.
Respect the Rights of your tenants
Follow through with your lease agreement. Tenants have rights when the property they are leasing would be up for sale. Read about the laws governing this situation and communicate it with your tenants. Inform them on your decision of selling the property and be considerate of your tenant’s current condition. Relive the lease agreement that you made with them and recognize both verbal and written agreements made.
Pliability
Laws are imposed for the protection of the lessor and the tenant. But if both parties have mutual consent, some of the details of the agreements can be modified. Often, the parties involved give additional flexibility to make the transition easier. Be considerate and document the modifications for your assurance.
Set the rules
If you find yourself in a situation with a cooperative tenant, you may say that selling the property will be uncomplicated. But according to real estate agents, these situations may end negatively. To avoid that scenario, lay down some ground rules. Discuss points such as:
- Open houses and scheduling of showings with duration
- How and when will the tenants be given notice regarding showings
- Expected condition of the property during the selling process
- Providing feedback regarding showings
Reiterate to tenants that their privacy is respected, but they also need to accommodate showings.
Motivate your tenants
To ensure the cooperation of your current tenants, provide them with incentives. You may give discounts on their current rent amount or offer to help regarding the moving services or expenses.
You may find communicating with the current tenants as burdensome and an additional task in selling your property. But having tenants while selling a house can be beneficial. For one, the presence of furniture will enable prospective buyers to visualise how they will live in that space. Always be in good terms with your current tenants, and they can be your marketing partner in your process of selling the property!