Should I List my Home While my Tenant Still Resides There?

Reblogger Joan Cox
Real Estate Broker/Owner with Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

It is tough to list a home when there are still tenants in the property, as they don't have any skin in the game.  I usually suggest to the landlord to offer a discount or free month of rent to allow for showings, and keep the home clean for showings.    Sometimes the tenant only allows certain times for showings, which makes it very difficult to get a home under contract.

 

Shanta did a great job with this post!  

 

Original content by Shanta Jackson 222208

With home values surging and inventory low, now may be the time to finally list that income property. But, as tempting as it may seem, wait until your tenant has moved out before you list your home.

 

Whenever you list your home, you want to make sure of three things:

  1.      It’s easy to show.
  2.     It’s priced right
  3.     It looks great.

 

That’s it!!  If you hit all three markers, your home will sell!

If your tenant is still in your house, you will MISS the mark on all three criteria.

 

It's easy to show.

With a tenant, there are state laws which guide showing the house. For many states, you have to give the tenants a 24-hour notice. That means, those casual showings for the weekend may be missed.

Buyers may not want to view any homes because of the perception that it will be harder to deal with, thus decreasing the number of people that want to view your home.

While, tenants may agree to the showings, they may not leave for the showings. This can make the buyer very uncomfortable and unable to get a great sense of the house.

 

It’s priced right.

Even if your home is priced at market value.  Most buyers feel that most homes with tenants will have more problems and need more repairs than other homes.  This may make initial offers on the home low.

 

It looks great.

No matter how beautiful your home is, it may not translate well if the dishes aren’t clean and dirty laundry is thrown about.  You can’t guarantee what the house will look like if you aren’t there to clean it.

 

You CAN sell your income property! Take the time and have your tenant move out before you list your home.

 

MOVING you forward in Raleigh!! MOVE forward knowing you have the best data and information to get your deal done...

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selling a home with tenants

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Rainmaker
528,591
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

As a property manager, I absolutely agree! I have really good tenants but I have seen others try to sell occupied homes and the tenant is far more likely to kill a sale than to help it. Get rid of the tenant first, then sell!

Jan 16, 2017 07:26 AM #12
Rainmaker
1,548,969
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Joan - this is a very good reblog.  Cleaning and restaging is going to make the sale more successful.

Jan 16, 2017 07:40 AM #13
Rainmaker
536,114
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

It can be challenging if the tenant is uncoopertive... and we know there are lots of those out there.. The can chosoe to be nice or difficult.  If the Seller knows the tenants and feels they are going to make it difficult to show, I would wait until they leave... The seller can then get in there freshen it up a bit, re-paint and clean before listing.

Jan 16, 2017 08:55 AM #14
Rainmaker
2,044,000
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Joan, Thanks for this re-blog. It is very difficult to sell a rental home any time a tenant is still in the home. I like your idea of offering a rent discount or incentive to lessee. 

Jan 16, 2017 02:00 PM #15
Rainmaker
1,419,708
Yolanda Cordova-Gilbert
Sitterle Homes - Richmond, TX
Sitterle Homes

Joan,' Good re-blog but sometimes you have to do it but getting buy in from the renter is important and good way to get it is to incentivize them!

Jan 16, 2017 05:20 PM #16
Ambassador
748,810
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Showing a tenant occupied home definitely comes with its set of challenges.  Some tenants put up some serious roadblocks to showing the home.  As with may leases, they cover the potential for the owner selling the house and how those situations are handled.  But as with many tenants again, they go by what they think they know rather than what they actually agreed to or what the lease actually says.  This is a tough situation.

Jan 17, 2017 08:22 AM #17
Rainmaker
3,236,210
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Joan

I would prefer that the tenant moves and the home is being shown vacant.

Good luck and success.

Lou Ludwig

Jan 18, 2017 07:17 PM #18
Rainmaker
4,657,181
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is a good selection for a reblog and excellent advice to share.

Jan 19, 2017 05:20 AM #19
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Stephanie, have to agree, if at all possible, wait until they vacate! 

Jan 20, 2017 02:03 PM #20
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nathan, I have seen the tenant try to sabotage the deal!  

Jan 20, 2017 02:03 PM #21
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, so agreed, minus tenant, cleaned & staged will sell a home quicker.

Jan 20, 2017 02:04 PM #22
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gloria, so agreed, and looks better after cleaning & painting! 

Jan 20, 2017 02:05 PM #23
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Bob, that discount USUALLY helps, but with some, nothing would help, and just better to wait until they vacate! 

Jan 20, 2017 02:05 PM #24
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Charita, so true, even with verbiage in the lease for the ability to show, they sometimes still throw up roadblocks! 

Jan 20, 2017 02:06 PM #25
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lou, that is best - RIGHT! 

Jan 20, 2017 02:06 PM #26
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, I know some landlords think they don't want to lose a month's rent, but is a better idea to wait.

Jan 20, 2017 02:07 PM #27
Rainmaker
176,339
Cheryl Dukes . . . . . Intown Atlanta
Solid Source Realty, Inc. - Atlanta, GA

I used to tell tenants that if they kept the home nice looking and helped me secure a new tenant prior to their move-out, they would receive a bonus. Most of them complied.

Jan 25, 2017 09:44 AM #28
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Cheryl, I have seen this same scenario! 

Feb 05, 2017 05:07 PM #29
Rainer
388,921
April Swenson
Coldwell Banker Ocean Shores Brokers - Ocean Shores, WA
CRS and Managing Broker - Ocean Shores Real Estate

I try to avoid tenant-occupied listings at all costs because there are so many problems associated with these types of listings and that causes the home not to sell for its highest price. But if they meet the 3 standards mentioned above, then it is good to go.

Feb 15, 2017 05:12 AM #30
Rainmaker
3,576,992
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

April, I have one now, and they are hoarders, no way to show it until they vacate.

Apr 23, 2018 05:33 PM #31
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Rainmaker
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Joan Cox

Denver Real Estate - Selling One Home at a Time
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