Selling a tenant-occupied home may seem like a daunting and stressful task, but it is achievable! With first-hand experience, I can assure you that it can be done smoothly. The golden rule? Treat your tenants with kindness, respect, and care throughout the whole transaction. If you don’t have a positive relationship with your tenants, consider working with a REALTOR® who has experience in these situations. Be sure to listen to their input and advice and allow them to act as a mediator.
One of the most important things to consider when selling a tenant-occupied home is the tenant’s rights. While you as the owner have the right to sell the property, your tenants have the right to privacy and peaceful enjoyment of their home. It’s essential to communicate clearly with them throughout the process, explaining what will happen and when, and giving them plenty of notice before any viewings or inspections. Review the lease and be well aware of the tenant’s rights and any stipulations related to selling the property.
When listing your property with a REALTOR®, consider arranging for your agent to tour the property with the tenant. This will allow for a discussion on the best way to coordinate showings that work best for everyone involved. It can be especially helpful if the tenant has a busy schedule or other commitments that may make it difficult to arrange showings. Your REALTOR® can work with the tenant to find the best times for showings and ensure that the tenant is comfortable with the process. Make sure to give them ample notice before any showings and try to schedule them at a time that is convenient for the tenant. It’s also a good idea to offer incentives to the tenant, such as a rent reduction or gift card, to encourage their cooperation during the showing process. A positive relationship with your tenant can go a long way in ensuring a successful and stress-free showing experience. After all, they have control over how the property shows to your potential buyers.
Another major factor you want to consider is the lease terms. These will have a major impact on the type of buyer you attract. If the lease is month-to-month, you have more flexibility to attract new buyers, whereas a year-long lease can significantly decrease your buyer pool and you may want to consider listing closer to the end of their lease. This strategy can vary depending on the property type. For example, a year-long lease for a multi-unit dwelling with promising rental income could be a major selling point for an investor. However, for someone looking for a single dwelling to reside in, it may not hold as much value.
By keeping open lines of communication and treating your tenants with respect, you’ll not only make the selling process smoother, but you’ll also build a positive relationship that can benefit you in the future. Selling a tenant-occupied home can be challenging, but with the right approach, it can also be a smooth sail. Until next week, happy Sunday everyone!
Eve Leombruno, 2023 MBOR President