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Should you Sell your Rental with the Tenant Still Residing There?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

The market is moving pretty good, and you are thinking, maybe it is time to upgrade the rental property.    The tenants' lease isn't up until July, and right now is a bit better to sell.   What do you do?    

 

Three things will sell your home:

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

 

With a tenant in the property, #1 sometimes misses the mark.   Do they decline showings?   Lock the screen door so the agents cannot get into the lockbox.   Leave the home a mess?

 

Most residential leases state the tenant has the right for a 24-hour notice for a showing, so this may make it difficult, especially on weekends when most buyers want to see property.

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.

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.

 

Whenever possible it is easier in the long run to wait until the tenant moves out, then list the property.    You will have fewer headaches, and the property will sell faster.

 

 

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

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Comments(18)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Joan... good things don't happen when a tenant is still in residence in a property that is listed for sale.

May 30, 2023 06:00 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Joan,

I couldn't agree more always best to have the tenant out before showing. Nina Hollander, Broker is right..good things don't happen when a tenant is still in residence of the property.

May 30, 2023 07:19 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

That can be a huge issue. Some tenants are pleasant but others ….

May 30, 2023 07:28 AM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

This is fantastic information!  Thanks so much for sharing.  Selling a rental can definitely be tricky but not impossible.  Hope you have a fabulous day!

May 30, 2023 07:29 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Joan, for sharing your experience and advice.

May 30, 2023 07:53 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Joan - consequences are a part of life.  I can understand both (there's likely more than two when I think about it for less than a minute) sides of this decision-making process.  Thoughtful consideration can be helpful.  

 

May 30, 2023 08:34 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina Hollander, Broker I have to agree!   If the homeowner can do it, have the tenant move first, then sell.

May 30, 2023 08:43 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, I agree, too many moving parts.

May 30, 2023 08:43 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lise, some are just a nightmare.

May 30, 2023 08:43 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Norma, I have sold with a tenant in the property, just easier without them.

May 30, 2023 08:44 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks Roy.

May 30, 2023 08:44 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, have to present all the options to a homeowner that has a tenant, but wants to sell.

May 30, 2023 08:44 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

And what if the tenant will not leave when they promise to leave and the house sells?  In California, that adds a huge complication.  The last time that happened to my client (who happened to be my dad), it took months and thousands of dollars to get the tenant out.  She was not on the lease and never paid my dad rent.  Still, it was a very bad situation. 

May 30, 2023 09:16 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ray Henson then there is that too.    I had an investor that bought a tenant occupied property and we renegotiated to close AFTER tenant moved out.  Best decision ever!

May 30, 2023 09:49 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Joan,

How coincidental that you post this.  I have a new listing with a renter coming on the market this week.  Long story short, the renter just renewed a 1-year lease (YIKES)!  My MLS requires I give a 48-hour notice to the renter to show a listing. We could not get in to take images, so I had to get permission to use the management company's pics. Rick had to work magic with those images and virtually stage them. 

It is what it is...

May 30, 2023 10:27 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sheri Sperry - MCNE® OH MY, that does not sound like fun.  Good luck my friend!

May 30, 2023 12:05 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Joan:

This is good advice about selling a tenant-occupied property and the issues a seller, and agent, need to consider.

I have had a couple sellers who incentivised tenants financially to cooperate with showings, keep the place clean, etc. and that worked well but they were very cooperative tenants to begin with. But it's all easier once the tenants are gone if the seller can wait.

Jeff

May 30, 2023 02:13 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jeff, I have had landlords just wait until they moved out, so they don't have to throw money at the tenant.

May 31, 2023 06:07 AM