As the real estate market begins to rebound, millions of homeowners are thinking of selling — maybe you’re one of them. Maybe you’re one of many of the millions of homeowners thinking of selling a tenant-occupied home. It is the experience of Real Property Management professionals that the actions, or inactions of a tenant can greatly impact the success of your sale.
The way we see it, you have two options.
You can wait for the lease to expire.
This is recommended. A tenant unhappy about the prospect of a sale could leave his belongings in disarray prior to a scheduled showing, or — to use an extreme example; we hope this never happens to you — he might damage the property entirely, making it less appealing to potential buyers. By waiting until the tenant leaves of his own volition, or until you have the opportunity to refuse to renew his lease, you will be able to make any necessary cosmetics fixes and upgrades to prepare the home for sale.
But can you afford to take this route? Even in a market on the upswing, your home might take weeks, or even months to sell. Ensure that you can bear the financial burden of multiple mortgage payments while you have a property on the market.
You can sell with a tenant on-property.
Choosing to pursue a sale with a tenant on-property has its benefits. This option has some benefits, the first of which is the presence of furniture. Furniture and books and, yes, even children’s toys scattered about tell buyers, “This house is lived in.” A house that is, and looks lived in can elevate the property from a structure with four walls and a roof into a home.
The key to success when working with a tenant to sell your house is communication. Work with them, not against them, and remember: As much as the house is yours, it has become their home. Arrange walk-through times and dates that mesh with their schedule, and consider offering some incentive if they’re open and amenable to your desire to sell quickly: Lower their rent during the on-the-market period, or offer to help pay moving costs.
Be thoughtful.
Whether you choose to list an occupied home or an empty one, know that even the most difficult tenants don’t really want to keep your home from being sold; they might protest the inconvenience of having to move (especially on short notice), but the solution is simple: Make them aware of your plans to sell, and let the lease run out.
Communicate well. You’ll find the process much easier to manage.