You have an investment property and your looking to sell.
You still have current tenants, so what are the tips to help you get a sale while your tenants are in your property?
If your Tenant has something to gain from the sale of the house, they would be more willing to cooperate showing it.Think of ways to motivate them!
If at all possible, it would be best to wait until the tenants vacate the house prior to listing, however, that may not always happen.
There are several ways to motivate your tenant so they have the house in “Show Ready” condition at all times. Let’s be honest, it is work to keep the house in good, show ready condition even if it’s the homeowner living in the house.
Once you list your house for sale, you’re now asking your tenants to go out of their way and clean the house, make the beds and “allow” Realtors into their home with their potential buyers.
Based on my experience, most tenants have strict showing times, they do not want lock boxes on the door, no sign in the yard and reluctant to answer their phone to schedule showings. Here’s a list of ideas you might consider to motivate your tenants to show your house:
-Offer a discount in rent while the house is on the market
-Offer to pay for their move
-Offer for a cleaning service while the house is listed
Ideal scenario would be for your tenants to buy your house, so ask if they would be interested in purchasing your house. Some may not be even aware that they’re qualified to be home owners.
Be sure your house has good curb appeal especially while you’re trying to sell it. I would recommend to have an inspection of the house prior to listing it to make sure there are no neglected areas inside or outside of the house.
Of course the best choice would be to wait until their lease term is up and market the house after tenants vacate.
Homes that are tenant occupied can be the longest ones to stay on the market for sale. Consult a Realtor and go over your options before announcing the Sale of your house to your tenants.
If things don't work out as easy as that . . . read on...
Selling a Tenanted Property
When a landlord plans to sell a rental property, the tenancy continues. The landlord cannot end a tenancy because they want to sell a rental unit.
Showing the Property
The tenant has a legal right to peace and quiet while the tenancy continues. The landlord or their agent must provide written notice to the tenant or have their permission to enter and show the unit to prospective buyers or to conduct an open house.
The notice must provide the:
- Reason for entering the rental unit
- Date and time of entry – which must be between 8 a.m. and 9 p.m., unless the tenant agrees to another time
Ideally, a tenant and landlord can agree in writing on a schedule for viewing times. If not, the landlord must give the tenant 24 hours written notice each time before showing the unit.
When the landlord has given proper notice, they can show the rental unit even if the tenant isn’t home. A landlord can enter common areas of the property at any time without giving the tenant notice.
A tenant may refuse entry that’s unreasonable or unlawful.