Selling a home with a tenant creates unique challenges. They have a lease that legally allows them to occupy the home, but you want to get rid of the property so you can get a fast injection of cash.
With the right approach, however, selling your home with a tenant can be simple and convenient for everyone involved…
Communicate as Much as Possible with Tenant
The current tenant can make or break the sale of your property. If they are happy and feel like they are being treated right, they will be far more likely to clean up the home, pick up the yard, and make sure it is available for showings. If, however, they feel mistreated, they can not only hold up the sale, they can drive down the final price by thousands of dollars.
So how can you make sure the tenants are happy? Start with good communication. Explain why you are selling the home, how long you expect the process to take, and assure them that they won’t be left on the street. Give your promise that they will be the first to know as soon as any information comes about, and let them know that you will give plenty of notice before showing the home. And, of course, keep these promises.
While you may think of the place as “property,” your tenants may see the place as “home,” so let them know you understand how difficult the process will be. Show your good will by giving them a gift card or even a simple thank you letter, all before starting the sale process.
Once you’ve established good communication, politely remind them about their responsibilities, including upkeep of the property and cleanliness of the home. Remind them to put away firearms, prescription drugs, and anything that might cause embarrassment.
If you are seriously concerned about a tenant’s cooperation, consider making them stakeholders in the sale. Offer a discount on rent for every showing, or tell them you’ll waive any charges from the deposit if your property sells within a certain timeframe. It goes without saying, but if you make these promises, you must keep them, even if it’s not in writing.
Advertise as a “Turnkey” Investment Property
If you have a tenant who wants to stay, advertise the property as a turnkey investment. This means whoever buys it will not only get a livable, income-generating property, they will get a tenant to go along with it. Many investors are purchasing turnkey properties, which provide convenience for both the buyer and the seller.
Wait for Lease to Expire
This might not be the most desirable option, but you could always wait for the lease to expire. Tenants can be unpredictable, and selling a home with a current resident presents complications. By waiting for the lease to expire, you eliminate any surprises with the upkeep of the property or the home.
However, many property owners can’t wait for the lease to expire. Perhaps you need to sell the house quickly to get a quick payment. Also, when you wait for the tenant to leave, you are going to have a period of time, which can last months, when the home is unoccupied and unsold. That can present a financial pitfall for many property owners.
Work with Cash Closing Home Buyers
Perhaps the best strategy for selling a home with a tenant is to work with Cash Closing Home Buyers.
We will work with you and your tenant in a professional and respectful manner to help you get rid of your property fast. Contact us today for a no-obligation cash offer on your rental property!