Over the past several years we have worked with many owners who needed to move but could not sell their homes for enough to cover the existing mortgage. They were "Underwater". So, we rented their home out to others, allowing them to move and rent where they were going. The idea was to wait for the market to get better and then sell.
That time has come. Prices are firming up in our area and homes are selling briskly. These owners are now looking to sell and are running up on something that they did not think about. The existing tenants have a contract or lease that allows them to live in their home. If the lease is not up, the new owner cannot just kick them out. There may be provisions within the lease where the new owner can buy the tenants out of the lease. In this case timing is everything. Don't kick out your Tenants until you have the home under contract.
The main problem becomes keeping the home in good condition while it is on the market. The Tenants really have no benefit to helping the home sell. Particularly if they are in a month to month situation with the landlord. We have a listing now that the tenant makes sure the home is dirty every time we show the home.
If you are in this situation with a tenant in the home and you would like to sell, give me a call. There are some things that you as a reluctant landlord can do to help in situations such as this. With a little finesse, your rental home can be sold and your Tenants kept happy.
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