If You Want to Sell Your Home – Get The Renters OUT

Good evening Belinda,

I've had the same experience. Get the tenants out, clean it up, stage if necessary and it will sell!!

Belinda, I had a listing which closed earlier in the month but at the beginning, it was tenant occupied and impossible to show and when it did show, didn't go well. Luckily, Seller took my advice and asked the tenants to move out. We received an offer on the house shortly after tenants moved out! Suggested.

This is just fundamental.  Tenants have no incentive to cooperate with the owner's desire or need to sell.

I have often wondered why home owners don't protect themselves by making the return of the security deposit conditioned on the tenant's cooperation by lock box, showing appts. etc. 

I rarely see this situation in homes I lease...frequently the renters are homeowners themselves elsewhere AND are cooperative.

To Lenn's comment - this is ILLEGAL in most states as the performance in showing their home is not a condition under which a tenant's security deposit may be withheld....better option is a good lease with GUIDELINES included that come into play when the home is on the SALES or RENTAL market...I have this in my resident handbook and provide interior photos of the home VACANT with floor plans to the listing agent as a courtesy!

Hi Belinda, great post and helpful advice especially for a new agent who is working with rentals now.  I have heard agents talking in my office regarding the same problem that you had experienced, trying to sell the house with the renters still in and it was a horrible mess!  Thanks for sharing!

It would be easier, but it does depend on the situation with tenants. I have had times where the tenants are better than the owners in terms of cooperating for showings. For the most part it would prove more logical to get them out. 

Hi Belinda - You're so right - rentals are much more difficult to show and rarely show well. We've all been down that road and it isn't pleasant, but convincing the seller is often difficult.

Hi Belinda,

Showing rentals does tend to be challenging.  Sellers can add incentives to tenants to get better cooperation e.g. $25 deduction from the rent for each showing or an extra month's payment to tenants after closing.  I too agree it is best to have a clean slate for potential buyers to see.

Best of GREAT success to you always!

I have had a lot of problems with this.  The worst is when the landlord offers the tenant a sub-market rent in return for them agreeing to show the home. Now the tenant's deal just got better and they are even less motivated to accommodate showings and keep the house in clean condition.

So glad it worked out for you. The homeowners were smart to listen.

Since we own a couple of rentals and in our market we do not use a lease agreement (month to month)...we tell our renters we will protect them if we sell by allowing the renter to determine how long a 'lease' they would like if we do sell.  The we explain to the potential buyer the renter has a lease for...

Yes, Belinda. I have those same problems and concerns in my area too. Trying to market and to sell homes with renters still living there is not a winning combination. Congratulations on your Sell after you got the renter out.

Good morning, Belinda -- as a general rule, I agree a home for sale without tenants in place is the better option.  I have seen tenant-occupied transactions work(occasionally) when the seller offers a rental incentive to the renter/lessee if they make showings accessible, maintain the home in an always show-ready condition and leave during showings.   

We are having this problem right now. Our buyers are very interested in a house, but the tenants have made every excuse not to show. Waiting now for them to move out!

We let the tenants have 60 days to move and give them there deposit and equivilent of one months rent to help us sell. We have never had one not help us

Belinda -

So true! No incentive for them. Sometimes they even make it impossible to show the property - yes, that has happened to me. And it isn't pretty when you are on the porch with the prospective Buyers!

Have a happy day -
Lynn

Suggested

Belinda, It is such a challenge to sell a home with tenants in the way. I just went through it myself and the tenants just moved out. It should make it much easier.

Belinda: And that's why I don't do property management. Tenants have so many rights these days, you can't just kick them out. Every time I had a tenant in a home that I listed, there were problems from a poor soul who committed suicide (a discloseable event in California but not in Hawaii) to someone who kept her trash in the garage and filled it!). Oh, and why did I not see that before? She must have taken in other people's trash. Not funny!