Selling a house with tenants in Connecticut can be a blessing or a curse. There is no sure way to know if your tenants will be cooperative or will try to sabotage the sale of your house. An uncooperative tenant can make it impossible to sell your Connecticut house.
A responsible and friendly tenant on the other hand can actually make your property more salable, particularly to landlord investors who appreciate having guaranteed income right from the start.
It’s critical to know how to sell a house with tenants. To that end we are going to share 4 proven tips that will assure the cooperation of your tenants to make the sale of your house smooth and headache free.
Can I sell my rental property with tenants in it?
First, we’ll answer a common question that landlords have which is, “Can I sell my house with tenants?” The fact is, you can sell your house with tenants. However, you and the buyer are bound to the terms of the lease you signed with your tenants.
Keep in mind that if your buyer wants to occupy the house after the closing, he will have to properly notify the tenant in writing. Depending on the state where the home is located your new buyer will have to give the tenant anywhere from a 30 day to 60 day notice.
If you’ve signed a fixed-term lease, then the new buyer will have to wait until the expiration of the lease to move in. Unfortunately, this will reduce your pool of potential buyers.
Nonetheless, there are clear advantages to selling your house with tenants, as opposed to having them move out before you put your house on the market.
If you vacate your house before putting it on the market you’ll run the risk of losing rental income. And since it can take several months to find a buyer and another 30 to 60 days to close, you may be out a lot of money.
How to Sell a House With Tenants
If you are thinking about selling a house with tenants, here are the essential steps you need to take.
Notify your tenant
The first step in winning the tenant’s cooperation is to be aware that the sale of your house will be stressful not only for you but for the tenant as well. Be respectful and communicate openly with your tenants.
Send a letter of intent to sell property well in advance of listing your house and offer them the first option to buy the house. Since your tenants already live in the house and are familiar with the neighborhood, they may take you up on the offer. Even if they are unable to buy, they will appreciate the gesture.
Compensate them for the inconvenience
A happy tenant is far more likely to make the sales process easier. Consider offering them a slight reduction in the rent so they can be flexible with showing appointments, help present the property in the best light and stay out of the way during house showings.
A helpful suggestion is to put everything in writing.
Agree on a showing schedule
You can avoid problems with your tenant by agreeing in advance on a showing schedule. There may be a particular day of the week or hours of the day that may be impossible for your tenant to make the house available. It’s important to agree on a schedule in advance to avoid straining the relationship.
Also assure the tenant that all buyers will be accompanied by a trusted real estate agent. Let them know that you respect their safety and possessions.
Agree on an acceptable notice
Speak to your tenant and agree on a reasonable notice to schedule showings. Tell the tenant that you will notify them in advance within the agreed upon time. Also try to inform them that sometimes flexibility may be necessary in case unique circumstances arise.
Keep in mind that a reasonable notice is customarily 24 hours. Notices that are longer than that will make it difficult to schedule showings and may drive buyers away from looking at the property.
Selling a house with tenants can be a challenge. Make sure you follow these top tips to make it easier for all parties involved, then your real estate agent will be able to help you with the rest of the sale of your property.