Selling a Tenant-Occupied Home.

Selling a Tenant-Occupied Home.

Selling a home is tough enough without having tenants, but selling a home with tenants can prove even more challenging. And now that the housing market is in recovery mode, many homeowners that turned into “accidental landlords” are looking to cash in while the market is hot.

Properly selling a home takes planning well in advance, especially for tenant-occupied properties. And if you’re the owner of a tenant-occupied home there are two ways to go about it. Essentially you have two options – you can sell your home while the tenants are still there “or” you can wait for the lease to expire. In either case – here’s what you should know before selling your tenant-occupied property.

Selling your home while the tenant is still there can be tricky – as one might imagine, a tenant can make or break your sale. But provided you have a good tenant/landlord relationship – it can be financially beneficial to keep your tenants in your home during the selling process. To ensure a good tenant/landlord relationship, you’ll need to do your best and work with them. Communication is key and providing the proper incentives all but ensures they will cooperate and help you sell your home quickly.

When tenants know you are willing to work with them, it is more than likely they will work with you. With proper communication and a couple of incentives – most tenants are glad to help with the sell of your home. Assure your tenants they will have enough time to move and find a new place. Maybe offer to help them with the moving cost. And don’t forget about lowering their rent during the selling process. Bottom line – tenants want to know where they stand. They want assurance they have enough time to find another place to live, and they love it when you’re willing to reduce their rent in lieu of their cooperation.

When talking to real estate experts, most will tell you to wait for the lease to expire, and truly, that’s your only other option. In the high-steaks of selling your home – tenants can be a bit of a wild card, and because of it, most agents will argue it is just better to wait until the tenant leaves. It is much easier to make any needed cosmetic repairs and get the home in selling shape once the tenant leaves. Keep in mind – a vacant staged home is usually the best way to sell a home. The harsh reality is – you don’t want to make selling your home more difficult – and having a disgruntled tenant all but guarantees a difficult sale.

No matter which way you go about it – selling a home is a major process and add in the mix of a tenant-occupied home, and it becomes even a bigger project. Whichever way you choose – the way you deliver your message to your tenant is just as important as the message you deliver when selling a tenant-occupied home.