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Tips for Listing Your Home with Tenants in It

By
Real Estate Broker/Owner with SD Home Source Realty BRE #01363537

I recently listed a home with tenants in it. The tenants were in their last month of the property. Upon taking the listing, I urged the sellers to wait until the tenants moved out and then list the home. But, who wants their home to sit empty for a month? The sellers chose to list with the tenants in place. What unfolded was a mini-drama about every problem imaginable.

On one of the first showings, the Realtor did not lock the front door upon exit, left lights on and kept closet doors open. This did not sit well. Then, there were issues with the dog that lived in the home. Lastly, an agent showed up without giving 24 hours notice and without an appointment.

Things became so heated between the landlord and tenants I was asked to step in. At that point, it was too late for me to have any impact. The situation had just gone too far.

Did the tenants have a right to be upset? Yes, absolutely. Realtors don’t always do what they are supposed to. You would be astonished to know how many can’t follow a simple direction. What eventually happened?  It got to the point however, where they would allow no more showings.

The tenant and landlord got to the point where they agreed the tenants would leave early. Funny, that was the suggestion I had in the first place!

Having your home shown while you live in the home is not fun. In fact, it can be a real pain in the neck. It is important for tenants to know what they are getting into.

If you are a landlord and have tenants in the home when selling, here are a few tips for listing your home with tenants.

1)  I encourage you to vacate the home first before listing.

2) If that is not possible, I would sit down with the tenants (with your agent) and spell out what’s involved with having the home on the market. This includes everything from keeping the home clean to stepping outside when folks come to view the home.

3)  I recommend offering the tenants a discount in exchange for their cooperation with the home sale. Make sure the discount is enough to motivate them.

4) Last but not least, I encourage you to place signs within the home to remind visitors what is needed, i. e. please lock the door on your way out, please remove your shoes.

You CAN sell your home with a tenant in it. A little extra preparation, discussion and planning will help pave the way for a smoother transaction.

Comments (7)

Tony Morganti
RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio - Cuyahoga Falls, OH
CRS, ABR, SRES - Cuyahoga Falls, Stow

Cindy -  These are very good tips, and valuable too.  Things that people need to be aware of when they find themself in this situation.  Thank you for sharing.

Jan 22, 2015 09:26 AM
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

Been there done that Cindy Davis .  Wise advice.  Many years ago, I was an 'expert' witness where a Real Estate agent got her license suspended for 6 months!  I clicked LIKE.

Jan 22, 2015 09:32 AM
Gabriela Agostinelli
RE/MAX100 - Leonardtown, MD
Gabriela A-Team

Hi Cindy, I agree with you. Great tips! 

Jan 22, 2015 09:41 AM
Catherine Marcy
HomeSmart - Palm Springs, CA
CA Desert Home Specialist

Listing a home with tenants or owner occupants always adds another step of communication.  No matter how clear the instructions are in the MLS, there will always be someone trying to get around the rules for showing.  Good tips. 

Jan 22, 2015 09:46 AM
John Pusa
Glendale, CA

Cindy - Those are truly good list of tips for listing a home occupied with tenants.

Jan 22, 2015 09:57 AM
Winston Heverly
Coldwell Banker Access Realty - South Macon, GA
GRI, ABR, SFR, CDPE, CIAS, PA

Cindy,  a nice read to point some of the questions pertaining to our real estate business.

Jan 22, 2015 10:48 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

We have quite a few tenant occupied homes listed. It can be a pain to get them shown and then we have experienced some of the issues you mentioned. A few months ago, I showed a tenant occupied home. That home has been on the market for over two years with the tenants still there. It was a horrible experience, and it was all we could do to get away from the tenants who wanted to talk and show the house to us. 

Jan 22, 2015 11:19 AM