Selling a Property with Tenants

Selling a Property with Tenants

There are many different factors that can determine whether or not your home is a good candidate to sell as a tenant-occupied property. If you have tenants living in the property, it may be challenging to find an interested buyer.

If you’re considering selling a home with tenants, there are a few important things to think about. Here are some helpful tips on how to sell a home with tenants so you can get the most money out of it and avoid any potential pitfalls along the way.  

Know Your Rights as a Landlord and a Seller

First, you need to know your rights as a landlord and a seller. This is the main problem that landlords encounter when dealing with tenants. Having a firm understanding of the law means that you are better able to manage tenants at all times, not just when you are trying to sell.

Ending Lease Agreements

One of the most important aspects of the law is knowing how to end lease agreements. The method depends on the length of the lease with your tenants. There are two main types to look for: short-term (month-to-month) or long-term (usually one year).

Your options for selling a property with tenants will vary by municipality and state. It's important to check your local laws before deciding on a course of action. Before you sell the property, you may have to provide the tenants with a specific amount of advance notice that you plan to sell.

For example, if you are renting to a month-to-month tenant, you can terminate the lease with 30 days’ notice. If you have a year-long lease with the tenant, you need to wait until that lease ends before you can sell the property without tenants.

Tenant Refuses to Leave When the House is Sold

It is important to follow appropriate legal procedures when trying to sell your house with tenants. If you do everything right, but the tenant refuses to leave when your house is sold, you can take legal action to have them removed. Renter laws work in the renter’s favor unless you correctly follow lease termination procedures. If you do, you’ll be able to evict the tenant, which may even involve the police removing them from the house. 

Selling a Tenant Occupied Property

Even if your state allows you to end a tenant’s lease, you may want to wait to do that. It can be easier to sell your house if you have the tenants move out at the end of their lease or if you give them time to make an easy transition to a new home. Even if you can end the lease in 30 days, it may be better for everyone involved to give your tenants more time. 

Selling a tenant occupied property may be easier than it sounds. If the house needs work or there are other things that you need to do to sell the house, letting the tenants live there during the process can make it easier for them to find a new home. Give them notice regarding your intent to sell well in advance so that they can start their new home search. You are less likely to have issues with tenants moving out if you work with them to find the right time that is best for everyone. 

Does the Buyer Want to Rent?

Alternatively, you may not need your tenants to move out at all. If you have a buyer lined up, ask the buyer if they want to rent the house. If they do, put your tenants in contact with the buyer so that they can negotiate a new rental agreement. If they come to an agreement, you can sell the house to the buyer without the tenants having to leave at all. 

Can I Sell My Rental Property with Tenants in It?

You can sell a home that has tenants living in it as long as the sale ends after they have been given their legal notice to vacate the property. That means up until the day that the house sells, they can live there. 

Deciding to sell a home that already has tenants living there can happen for many reasons. Some owners grow tired of the work that it takes to maintain a rental property. They may no longer want to be a landlord, so selling the house is the next logical step. 

Selling while there are tenants can also reduce costs. Having tenants in the house means there is still rental income while you’re getting ready to sell.  

How to Sell a Home with Tenants

If you are trying to sell a home with tenants, let them know as soon as possible. This gives them time to look for other options and conveys respect. Afterall, you will need their help to get the house ready. This is especially important when you’re unsure if and when the house will sell. The tenants can stay if they keep the house in good condition. Plus, you’ll also want them to be willing to have people look at the house with or without them there. 

When you are ready to complete the sale, send the tenants official notice that you are selling the house. This gives them time to vacate according to legal requirements. Make sure to set a closing date at least a few days after the tenants move out. This gives you time after they move out to do a final cleaning and inspection.

What Are the Risks of Selling with Tenants?

There are some risks involved when selling a property with tenants. One of the biggest potential issues is if the tenants and the new owner cannot come to an agreement for renting the property. Depending on the jurisdiction, it could hurt your ability to sell. 

Can You Sell a House with a Tenant in It?

Yes, you can sell a house with tenants in it! They can continue renting the unit up to the date of the final sale of the property, or even after the sale is complete, if they make an agreement with the new homeowner/buyer. The main thing to remember when selling a home with tenants is to do your research and know the laws. You’ll want to make sure that you have all of the proper documentation in place and that you carefully screen and vet your tenants. Selling a home with tenants can have an added layer of complexity that you should be prepared for. 

You can sell a house with tenants if you need to; the process is just a bit different from how you sell without tenants. You may not have to have your tenants vacate, they may not need to find a new place to live, and the buyer will already have a tenant. Otherwise, having tenants move out so you can sell the house is a relatively easy process, too. 

An alternative option is to sell your house to House Buyers of America. If you are thinking, “I need to sell my house fast,” we are the company to talk to. We buy houses fast by offering cash. You can also sell your house AS IS, including with your tenants living in it. We will handle any issues that come up and make it easy to sell your house.