Dave,
We decided to rent out one of our houses a few years ago. Now that the market is doing well and home values are up, we want to sell. The renter that currently lives there doesnât want to purchase the home, but also doesnât seem very keen about moving out. Weâre worried that he will make the selling process more difficult than need be. Whatâs your advice for selling homes with tenants?
Thanks,
Rob,
Great question! Selling with a renter in place can be very tricky and can provide a significant obstacle if you donât work to meet them in the middle. You will need their cooperation if you are going to be successful at selling and get anywhere close to market value. First, you must refer to your lease contract and use that as a guide on how to deal with your tenant during the process of selling. There should be language in the contract for how the process will work with your tenant, as far as showing and selling. If you still have months left on the lease, then obviously you will have to honor the remaining time and the new owner will inherit them as a tenant until the end of their lease. If they are under a month to month lease then things get easier as long as you provide ample notice (typically 30 days) of when they need to be out if the new owner does not want to keep him/her as tenants. Regardless of the contract language or length left on their lease, tenants typically (and understandably) are not thrilled about having the house they are renting sold!