If you’re a landlord looking to sell a house with tenants, you must honor the lease and their rights throughout the sale process. The Red Door Guys have experience with selling rental property. Since we buy houses in Richmond, VA, we provided our expert insights below.
Selling a Property With Current Tenants
A tenant-occupied property sale comes with advantages and disadvantages. While you can make the property someone else’s responsibility, you must tread carefully and honor your landlord-tenant agreement. Find out how to legally navigate the process.
Review Your Lease Agreements and Local Laws
First, ensure that your actions follow your current lease agreement with the tenants. You should also read through local eviction laws in property sale situations, which can vary by state and municipality. Record any details that may work for or against your decision before moving forward.
Notify and Negotiate With Your Tenants About the Lease Terms
Maintaining clear communication lines is essential throughout the process. Ideally, the landlord provides both written and verbal notice to the tenants for the sale. Under most circumstances, you should provide at least 24 hours of notice before putting the property on the market.
Entertain their questions and concerns and let them know what to expect in the coming weeks. Some tenants will accept payments from the landlord if they vacate the property by a particular date. Others will renegotiate their lease terms to benefit themselves and their landlord.
Get the Property Ready for the Market
Market preparation takes lots of work and money when you sell a house with tenants. Therefore, you will need to inspect the property to identify damages and potential repairs. It’s possible You may have to hold the tenants liable for damages they caused or potentially sue them if they refuse to cover the cost of repairing the damage.
Weigh Your Sales Options
Who purchases properties with tenants living in them? You have a few options at your fingertips. First, you might sell the property to the tenants.
If your tenants can qualify for a mortgage and provide a downpayment, they might be more than happy to take the rental off your hands. Alternatively, you can go the traditional route with showings, realtors, and appraisals. However, this throws a wrench in your tenants’ privacy if they stay during the sale process.
Finally, you might choose a cash buyer, like The Red Door Guys. In some cases it may be possible to let your tenants stay for the remainder of their lease agreement or assist with their transition. You can facilitate a lease transfer during the sale in this scenario.
Close the Deal
Your goal should involve satisfying all parties as much as possible. Since cash buyers provide landlords and tenants with freedom and options traditional routes don’t, this may just be your best bet.
Sell a House With Tenants to The Red Door Guys
You can sell a house with tenants to The Red Door Guys in Richmond, Virginia. Learn the difference between a cash buyer and a realtor, and determine which route works best for you. Then, call 804-395-7355 for a cash offer. Learn more today.