Selling A Property With A Tenant
If you’re currently a landlord or a property owner trying to sell their property that still has tenants in it, you might have some questions about how to proceed…You may be wondering what the laws are about selling, how to keep peace with the tenants during the process, or if you should entirely wait for their lease to finish before listing or selling.
Well, here we will go into some important points about tenants, and considerations that might help you decide what to do next before making any concrete decisions.
Let’s talk about the tenants and you
1. First off, always make sure you act in accordance with the law!
Get familiar with your states’ laws! If you are wanting to have the tenants leave the property before selling it, make sure that you abide by the landlord tenant laws that are provided by your state.
It is important to know the specific lease terms in your rental agreement that you have between you and your tenants. For example, in Florida, if the rent is paid weekly, you need to give your tenants 7 days notice before terminating the rental agreement. If rent is paid monthly, you are required to give your tenants a 15 days notice.
Never try removing your tenant without giving notice – as you could be the one who faces consequential damage payments, or legal action, which you definitely don’t want to happen.
As a landlord, there is nothing that stops you from selling your property with tenants – but be aware that if the lease extends beyond the sale date, they are still entitled to stay at the property until the lease is done.
2. Your tenants may react in ways you would not expect
Upon hearing that you are selling the property they are renting, your tenants may react with shock and stress. They may feel their future housing situation is at risk and they don’t know what will happen – will they be asked to move before the property sells? Will the new buyer continue to keep them as tenants? Will their rent increase? Will they be faced with multiple showings of people coming over to view the property? Quite frankly, they will feel awkward. Worse case scenario, they start causing problems (think: expect the unexpected) with the property, but on the other hand, they may peacefully start looking for a new place.
3. Talk to your tenants as potential buyers
Do they love the property? Are they getting ready to perhaps purchase a property of their own? Maybe they would be interested in purchasing the property from you! Talk to your tenants to see if that is something they would be interested in (as long as you are interested in that as well)! Depending on your situation and your tenants, it’s worth exploring if you don’t already have a buyer!
4. If you have a good relationship with your tenants, offer some flexibility if warranted.
You have the option of allowing your tenants to cancel their lease before the original end date, without penalty, or fee to them. Your tenant may be appreciative of this offer and quickly find a new place to rent, without becoming destructive and careless to your property.
5. COMMUNICATION = KEY
Just like any relationship, even with tenants, communication is key. Tenants are more likely to be agreeable, respectable and amicable if they know what is going on, and know that you are not trying to be malicious. Keep them in the loop about what is happening. This will help make showings, discussions, and decisions easier for both you and them. If they are well aware about a future showing, explain to them the importance of the property being in good shape so that they don’t have their dirty laundry scattered throughout the house when a potential buyer stops by!
If you decide to sell a property with tenants in it, the 5 points above can help make it a bit easier for both you and them.
Have you ever bought or sold a property with tenants in it? How did it go?
We Buy Houses Fast In Orlando understands the difficulty you may face when selling your with a tenant. We provide fair offers and want to create win-win situations for you. We are local experienced home buyers in Orlando and we buy houses in any condition. If you need to sell your house fast in Orlando, Please check out how our Process works!