We have all been there. You compete and earn a listing for a piece of property. You are excited to start the marketing. There is one complication though, it is currently rented out.
I try not to get involved with listings that have tenants unless they are on month to month tenancy or are a multi-unit dwelling that buyers will want stable tenants.
You can help yourself by working with the tenants and try to minimize the impact on their lives. This is their home and you at all times have to remember that you are adding a lot of stress in their lives.
I meet with the tenants and the seller and explain that the home, (usually a condo or townhouse) is being sold. We will do everything possible to make it as painless as possible.
There are three possible outcomes:
- They work with us to help sell the home. They can stay in the home during the sales process. If the buyer is an investor who wants them to stay, they can continue on with lives without having to move.
- They work with us and the buyer wants to live there, they will at that time receive a 45 day notice to vacate. They can move anytime during the 45 days with no penalty. I will work hard with them to help find them a replacement home.
- Should they choose not to work with us, they immediately get their 45 day notice. I will still help them to find another place. After all I got in this business to help people get a place to live, not to kick people out.
So we met with the tenants, they have pledged their cooperation and away we go.
Well maybe not so fast. I did remember to mention that there were tenants? In the real world tenants have a vested interest in delaying the sale of the property and they find many creative ways to that.
Tenants can make or break you. More times than not they may not break you, but they will at the least make you bend or twist. Here are a few of the things that I have had tenants do:
- Change the locks
- Move out and leave the place trashed
- Make showing appointments and then cancel at the last minute
- Not allow any showings during the week
- Leave dished I the sink all week long
- Not allow a lock box
- Tell perspective buyers about every negative and a few they made up
- I had one move out, and drop the keys off at my office. Unfortunately they were not for his condo.
- Move in family and friends with all of the personal effects
- I almost forgot; I have had tenants delay their move date causing the escrow not to close on schedule.
I had one who cooperated with me as long as I sprung for lunch and a movie every Sunday, so her and her daughter had something to do while I held open houses. I didn't mind, because she actually helped us sell the unit.
I have not only helped several tenants find replacement homes, but helped them move.
This is a people business and have found that every time I have gone the extra mile it has come back to bless me many times over.
Comments(27)