Steps you can take to insure a smooth listing process while your renter still occupies your investment property.

We talk on a regular basis about how real estate is one of the most solid financial investments you can make. If you planned right, your rental should be providing you with positive cash flow. So what if it’s time to sell? If your renter is approaching the lease end date, it’s no big deal, right? You can just list it when he/she vacates the property.

But what if you’re listing before the lease is up? Let’s say you want to give yourself a bit more time to list your home, and have us market to our pool of investors. It can be a bit daunting to try and work around your renter’s needs, as well as stay well within their rights as tenants.

Here are a few steps you can take to make the listing process easier while your tenants are occupying your rental.

First of all, honor the lease.

To be clear, if you have legally executed a lease that has been bound by agreement by your tenant, they have every right to remain in the property until the lease expires. If you sell while the lease is still active, you have no recourse to break the lease or have the tenants move. You must also still honor state laws regarding proper notice to end tenancy.

Be honest, and inform the tenant of your intention to sell.

A good idea is to schedule a face-to-face to let your tenant know of your intent to sell your property. While it may seem a bit daunting, it is a good way to begin the process of finding out how amenable they are to allowing prospective buyers to view the home.  Working out a game plan for showing the home while it is listed can make for a much more positive “win-win” scenario. This is also a good time to find out if they are interested in purchasing the property from you.

Make sure you and your tenant are solid on the showing rules, and stick to them.

Be mindful of your tenant’s rights and privacy. They should not be unreasonable, but they may wish to be given sufficient notice before a prospective buyer arrives to view the property. Insure also that agents and potential investors are aware of the showing rules as well.

Finally, hire an agent with experience in selling investment properties.

The Elgin and Pilar Walker Team has abundant experience in listing and selling investment properties, whether tenant occupied or not. We can help guide you on how to properly give your tenant notice, as well as provide you with guidelines that can make the transition as smooth as possible for both of you. Contact us today for a no obligation consultation.