Are you tired of being a landlord and questioning how to sell my rental property with tenants? If you have tenants living in the home and you’re not sure what to do, but you know you want to retire from the role of the landlord then this article is for you. We are here to walk you through the process and the steps you need to take.
There are two different ways of selling your rental property with tenants. It can be selling it after the lease of the tenants expires or selling a property while they are still living in the home. Moreover, both have benefits and drawbacks.
Wait for the Contract to Expire
The problem with wanting to sell rental property with tenants is that they may be legally bound to stay in the home. If you stated specifically in the contract that you can evict them if selling the home, then you can sell it without any problems. Meaning, they are forced to move out. If the contract does not say that, then you may be stuck waiting it out until their contract is up. Here are the pros and cons of holding on to the property with tenants for a little bit longer.
Pros:
- Repairs/Renovations – If you have a good relationship with your tenants, then you may be able to go in the home and see what repairs will need to be done to sell the place. If some things need to be done you can offer a rent discount if they make some of these minor fixes. Maybe they could paint some of the walls or replace the old flooring.
If the property is vacant after the lease has expired, you can be able to clean, do cosmetic updates, or some repairs and renovations which helps you to list your home with a higher sale price.
- Pays down the mortgage – If your tenants are still paying down the mortgage for you, that is more money you can cash in on once the property sells.
- Timing won’t be an issue – In a real estate market, selling a property with tenants can be difficult if you need it to be sold quickly. But if the house is unoccupied when you list it, you can accept the best offers from the market without worrying about timing.
Cons:
- You are still the ‘landlord’ – If you are legally bound to the contract, then it looks like you will be stuck playing the role of landlord until the contract is up.
In this option, patience is a strong strategy. Waiting for the lease to expire can take long. However, you can think forward and visualize in advance how to sell your home to companies that buy rental properties or to negotiate it through the real estate market.
Tips:
If you are waiting for the lease to expire before you can sell your property, you can try to negotiate with your existing tenant to move out. It is a common approach to many. That way, you can be able to clean and stage the property.
You can also help your tenant in finding its new residence. The tenant can make sure they still have a home whenever they move. Naturally, this kind of activity greatly helps in building the landlord’s relationship with their existing tenants.
You may also read this page. HOW TO EVICT A TENANT
Can I Sell my Rental Property with Tenants in it?
Pros:
- An investor may want to purchase the property – If you can find an interested buyer who will use the property as an investment, therefore this may be a golden opportunity for them as they will already have a renter once they purchase the home.
- Tenants that are taking good care of the property is a desirable factor to potential buyers.
Cons:
- If your tenants are stubborn, this can make it difficult to show the property. Your tenants may be a pain and not allow anyone to come to walk through the house. If someone does come to see the home then you won’t be able to guarantee the condition of the home. This can make the selling process extra difficult.
- If you are selling a property with tenants to a newly married couple or to a small family who is looking for a new home, they’ll less likely show some interest or be captivated to buy it. They will much more prefer a home without tenants.
- Selling a house with tenants allows realtors and buyers to question what kind of tenants they will be inheriting from buying the property: if tenants are responsible enough to pay the rent on time, their eviction history and usually their financial status and income. Fear of the unknown can reduce the buyer’s pool even more.
Sell to a Cash Buyer
Pros:
- Purchase as is
- Pay with cash
- Sold in 7 days
- Purchase with tenants
Cons:
- Angry tenants
Why Sell your Rental Property to Us?
Sellmytenants is a house and cash buyer all across New Jersey. We buy rental properties, as is and with or without tenants. You can contact us or call us at 866-838-9953. We help landlords in all kinds of situations. Contact us today!
