As a landlord, one of the toughest challenges is to sell an occupied property. Probably, at the time of purchase, you didn’t wish to sell the house. However, the market can change. Personal circumstances and the local market can favor selling over renting. In that case, you want to sell the house but selling a rental property is different from selling a vacant home.
With an empty home, you have control over the appearance of the property. You can stage the home as you want. However, with an occupied house, even showing the property to potential buyers can become a challenge. This article shares simple tips so you can decide how you want to sell your rental home.
There are two types of rental agreements: fixed-term and month-to-month lease. For the latter, you should wait for the contract to expire and then start preparing your home for sale.
The problem arises when you are on a fixed-term lease, and there is no clause in the contract that allows you to sell the house. You can include a provision in the agreement that terminates the lease when you wish to sell the property. Unless this condition was a part of your deal, you could not sell your home while the tenant is living there.
That means you need to terminate the contract and pay the penalty. If your tenant ends the agreement, he will pay the said fee, and the case will be over.
Every agreement can have different terms. So before you think about talking to the residents, take a second look at your contract. When is the lease expiring? Read the conditions so you can avoid violating the local laws.
If possible, it’s best to wait for the lease to expire and then try selling the house. However, we can understand that waiting is not always a possibility. There are times and situations when you must sell your home fast, and you cannot afford delays.
In that case, your best bet is to motivate the tenants to help you. Your property is the tenant’s home. Moving is a complicated process. You are asking the tenant to leave early which can be a stressful experience for the residents. Try to make it less stressful for the tenants. Offer help. For instance, you can offer to pay the rent for one month. Provide them moving assistance. Help them find a new residence. It pays to talk to your tenants so you can come up with a win-win situation.
As a landlord, you can choose to sell your home to another buyer. The buyer will purchase the property and will assume your contract with the residents. Tenants can continue to live in the house until their lease expires. In this situation, you don’t have to do anything.
You don’t even have to communicate with tenants regarding the sale of the property. If you want to use this option, give us a call. We can buy your home as-is for a cash price. Our firm will assume your rental contract. There is no need to repair the house.
Consider selling your home as-is if you have bad tenants in the house. The eviction process is time-consuming and expensive. Instead of repairing the house and waiting for months, you can sell your home to another investor who will tackle the matter on his own.
To sum up, there are two ways to sell an occupied rental property. The first is to talk to your tenants, ask for their help and see if they are willing to move early. Honest tenants will assist you provided that you are helping them too. However, sometimes, the residents are not supportive. They try to damage the home, won’t pay the rent, will disturb the neighbors. In that case, it is best not to discuss with them, the idea of selling the house. Instead, you can contact a reputable real estate solutions company in your area and sell your home for a cash price. It will be the end of repairs, bills, and late payments.