Having a tenant in your home, condo, or rental property when you are trying to sell might not be an ideal situation, but it is a situation that can be overcome. When selling a property with a current occupant, it is necessary to make some extra consideration as far as advertising and showing the property. If you find yourself in this situation, you might be wondering how to sell a house with tenants.
It is essential to consider both the tenant’s rights under the rental agreement, as well as your requirements as the landlord and seller.
Before you consider selling, it is common courtesy to inform your tenants as well. Who knows, maybe they might even be interested in buying the property.
Is It Possible to Sell With a tenant?
Being a landlord has is a lot of responsibility, and when it comes time to sell, this is usually the first question that comes up. In most, if not all jurisdictions in the United States, the tenant has the right to stay on the property for the length of the agreed-upon lease. This will continue after the sale of the property as well.
In most situations, having the tenant continue with their occupation should not be a problem. However, there are some disadvantages to having a property occupied when trying to sell. If you think that having a tenant on the property will limit its ability to sell, there may be some other options for you.
Should I try and Convince the Tenant to Leave?
In almost any situation, it should be possible to market a property while it is still occupied successfully. This can even work to your advantage if it is an apartment or condo property. This could show potential buyers that it is a valuable investment property.
Most investors would be more than happy to invest in a property with a current occupant as long as there is a rent agreement currently in place. However, there are situations where the tenant might owe money or be paying a below-market rate for the unit. In this case, you may want to pursue other options.
Negotiation
You can always attempt to negotiate with the tenant to modify the length of the lease. It is possible to offer a sum of money in exchange for a lease modification or early termination. This way, it is easier to stage the property and have it “vacant upon closing.”
There is a certain amount of risk with this strategy, though. Nothing is stopping the tenant from ignoring the agreement and remaining on the property after the agreed-upon timeframe.
In some cases, it is better to wait until the tenant’s lease is up before even listing the property on the market. Tenants should be notified that the property will be up for sale, and there will not be a lease renewal.
The Takeaway
The best-case scenario when selling a property is that the property will be vacant before putting it on the market. That takes a little planning on the part of the landlord. Whether it is timing or an agreement with tenants, it can be tricky to sell the property but never impossible. Sellers should also consider the benefit of keeping tenants on while trying to sell, but of course, it is always dependent on the situation.
If you are ready to sell your property, with or without a tenant, Call Soldavi Realty at 209.975.7653. Contact an expert realtor in Merced, CA today.