Does anyone ca
re about the tenants anymore?
Yes, my client does....
There have been many horror stories about tenants who make it extremely difficult to make appointments to view a home; who do not keep the home tidy; who do not tell the truth about anything that might speed the sale of the house.
But every once in a while you find that good tenants are just about as abundant as good landlords.
My client needs to sell her house that is currently rented. But, one of the first things that she asked was, "Could the tenants stay as long as possible and how does that work?"
This is what I told her.
Keeping the tenants during a sale is usually perfect for the new owners if they are investors and want to purchase investment property. In fact, this is quite appealing to them, as the property they are purchasing is already rented/leased.
If there is a lease in effect, the lease is honored, even after the sale, unless other terms have been agreed to.
"Landlords can freely transfer their interest in the leased premises so long as a provision in their lease agreement does not prohibit it (Upton v. Toth, 36 Cal. App. 2d 679 (1940)).
If a landlord sells leased property, the lease remains valid. The purchaser becomes the new landlord and is generally subject to the lease provisions, and the tenant becomes the tenant of the purchaser. All rights and obligations of the original lessor are transferred to the purchaser. (Garetson v. Hester, 57 Cal. App. 2d 39 (1943); see also Smith v. Royal Ins. Co., 93 F. 2d 143 (9th Cir. 1937).)" (This pertains to California and may not be the same in your state).
Showing the home to future owner-occupying prospects makes things a little more difficult. Tenants' rights usually require 24 hours notice (unless different terms have been agreed to) be given before a property can be shown. This is usually OK with most buyers, but you will lose the 'on-the-spur-of-the-moment buyers', or those who are just looky-looing through a neighborhood. Open Houses are not usually approved by the tenants. So your exposure becomes a bit more limited. But it CAN be done.
The tenants also become quite tired of the whole "making an appointment, showing, leaving the premises, worry of their personal belongings, etc., etc." that they prefer to move out sooner rather than later. Now you have a vacant rental property for sale.
My client will soon be making this decision, but the generous spirit she has towards her tenant is admirable!
If you would like more tips on selling Ventura County Real Estate, please call me or click.
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