Here are three ways to consider selling your tenant-occupied property.
With our real estate market being as good as it is, I have many people reaching out to me wanting to sell their investment properties or homes they own with tenants living there. Selling a house with a tenant in place with a lease can be difficult to navigate, but here are a few ways you can do it:
1. Cash for keys. This means providing a small financial incentive to the tenant to move out of the property. This is often done when the potential buyer wants to live in the property (owner-occupied). Offering something like one months’ rent to the tenant while they find somewhere else to live can be a great way to amicably part with them before the lease is up.
"You can offer a small financial incentive for a tenant to move out of the property before their lease is up."
2. Selling to an investor. An investor will want all the tenants to stay and keep the leases in place because they’re buying the house to make money. However, they want to see that all the rents have been paid on time, so you need to show proof of that. If you have tenants that pay late, you need to consider that because it can be an issue moving forward.
3. Wait until the lease expires. If it isn’t too long before their lease expires, waiting, giving them proper notice, and having the tenants vacate before you list the property can be a smart idea. Then you can have the property deep cleaned and professional photos taken, which increases your chances of getting top dollar when you sell. Buyers will be able to walk in and view the house without all the tenant’s clutter in the way and may be more likely to make an offer.
If you have any more questions or want to discuss the value of your property, please reach out via phone or email. I’d be glad to speak with you.
