Are you preparing to sell a renter occupied property? Read this post to learn the best way to handle the process, tips on how to discuss the sale with your renter, advice on how to schedule showings and insight on what type of buyers you should target.
Follow the Rules:
Selling a property with a tenant means following a few extra steps than selling a home you live in yourself. The exact rules vary by state. For example, some states require that you offer your tenant the option to purchase the property before you show it to anyone else. As another example, in California, once the renter is informed of the pending sale, the home owner can enter their property anytime so long as they give a verbal notice 24 hours in advance. For a successful, smooth sale, research your local laws before you list and make sure you abide by them throughout the process.
Give Your Tenant a Reason to be Helpful:
When your tenant is compensated for being inconvenienced, they will be more likely to be helpful. As your doing showings, you’ll want your renters to keep the house tidy (beds made, dishes put away, clutter gone). To incentivize that behavior, offer a discount on their monthly rent for the remainder of the lease or provide a token of appreciation for their help. For example, if you plan to have an open house or have scheduled several showings one weekend, offer to pay to put the tenants up in a nearby hotel for a few days.
If your tenants would like to remain in the property after you sell, consider targeting investors instead of residential buyers. An investor looking for a turnkey investment will be thrilled to find a home with reliable tenants already living in it. It also works out to be a win for your renters and simplifies the process for you!
Be Courteous When You Schedule Showings:
Having tenants in the mix can complicate showing schedules. One option that can help simplify the process is to offer showings (no appointments needed) during the time you know your tenants will be at work or school. Another option is to request that buyers’ agents book an appointment with you at least 24 hours in advance so you can give the tenants plenty of notice. Consider how you would want to be treated if you were the renter in the situation and treat your tenants with the same courtesy.
Whether you end up selling to a buyer looking for a home or an investor looking for a new source of income, having your tenant in your corner will really simplify the process.