Can I sell my property with the tenant still living there?

With uncertain times, many investors are asking if they should now sell their investment properties. This seller owns a local single family. They were relocated and feeling they had no time to sell their home, placed a tenant in the home. The tenants have called and said they will not be able to pay rent. Therefore the seller can not pay the mortgage. Their choices are to sell or walk away.

Checking the loan balance versus what the market value is, there is equity in the home. The tenants allowed me to walk through the home. I was welcomed by a life sized cardboard cut out of Jason Aldean sitting on a Coors light box. Yes located in the bathroom. The tenants are mix of roommates that the renter set out to find to help pay the rent. Although the room mates are paying him and he is not paying the rent as he got lay-ed off because of the virus. 

The home was messy, clothes here on the bathroom floor, clothes in the hallway and on the bedroom floors. Over flowing trash cans were just a few items that stood out.  

I broke down the options to the property owner. First, given the fact the tenant is not paying anything, any investor may not want to inherit such a problem. The property can be sold as is. Most likely to a cash buyer who will not want inspections and take the risk with the tenant as is. The sales price will be lower but it will be quick and without delays. The 2nd choice is to evict the tenant and wait until it is empty, sell it as is or clean, repair and paint it for top dollar. 

IN SUMMARY this seller has no savings to pay the mortgage without rent. They would like the highest price possible, but understand the situation. I came up with an idea. I went back and met with all tenants who now know their rents was not being paid to the landlord. With April rent coming due, they should make their share of the rent to the owner direct and not to the tenant who is collecting but not paying it.  Yes, it put him on the spot, but they all agreed. They also agreed to allow showings for being allowed to stay as long as they pay. The seller was very happy. We set a price in the middle that will get the seller a nice check at closing and relieve their financial burden. The tenants were even happy. 

THE BOTTOM LINE is to know how important it is that every Buyer or Seller should not just choose any agent, choose the BEST agent for the job. Having an agent that works for you is a must. Support your local businesses. 

My philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.