The Challenges of Selling a Home with Tenants
While renting your property out may have seemed like a good idea at the time it can certainly make it a little trickier when it comes to selling a home and can definitely reduce the number of buyers who might be interested. Unfortunately you can’t just kick them out or turn off the utilities. You are legally bound to honor the term of the lease unless they default. On the bright side there are many real estate investors out there interested in buying a home with tenants and income coming in. So these may be the first buyers you want to attempt approaching. If that just isn’t generating enough interest or a viable offer you could always offer to buy your tenants out of the lease. How much really depends on how long they have left and how much it will cost them to move somewhere else. If this doesn’t work or you simply can’t afford it then the best thing you can do is to get them on your side in your effort to sell the house. Otherwise awkward and uncooperative tenants can quickly kill any potential sales. Take the time to explain to them how they will be better off with a new landlord in place. Reassure them that they won’t just be kicked out in the street and that the new owner may even invest more money in improving the home for them to enjoy. Be courteous with showings, give notice when you can so that renters have time to clean up and aren’t inconvenienced and if necessary bribe them with a free lunch or Starbucks gift card to get them out of the house so that they don’t put off your prospective buyers.
Selling a home can become even more challenging today if you have rented it out to tenants. Though before you get tempted to send the local biker gang over to scare them out keep reading for a few more amicable options that won’t land you in jail…