You’ve decided that it’s time to sell your investment property. After all, you bought it as an investment. You have tenants with a lease in the property which can be a good thing or a bad one. So how can you sell your investment property with tenants?
Tenants in place when you sell
Having a tenant in your investment property can be tricky. If they get it in their heads that they don’t want to cooperate with the sales process, your goose is pretty much cooked, and even if they say they will cooperate, what they say and what they do can be two very different things. However, there are ways to make sure that the process goes smoothly with the tenant on your side.
Offer to tenants first
Your first move should be to offer the home to the tenant before hiring a Realtor. They may be interested in purchasing the home and the process could be considerably shortened before it ever gets started. If you get the idea that the tenant will not cooperate at all, you might just want to scrap the sales plan until their lease expires. Don’t offer to renew their lease and you will be able to sell with it empty. The same goes if they are slobs. You need the property to look its best to sell, so if you can’t count on the tenants to keep the property in its best shape, waiting until the lease expires might be your best bet.
Offer incentives for cooperation
If your tenants do agree to cooperate, or you can’t wait for the lease to expire, there are still things you can do. First, you can offer incentives to the tenant for their cooperation. You could reduce the rent during the time the property is on the market. Another extra you could offer is to cover all or part of their moving expenses, after giving them proper notice per the lease. You could also offer extra time to move out to give them time to find a new residence. Make sure that you make it clear that the incentives require them to cooperate and to leave the residence clean and in good shape.
Know landlord tenant law
You must keep in mind that if the tenant stays they have to agree to showings of the home. Sure you must be given access to the property, but they don’t have to agree to let a Realtor in (check the law on this). This can make selling nearly impossible. So know the law in your jurisdiction about landlord tenant laws, know what it takes to evict and what it takes to sell with a tenant.
If you have any questions about how to properly list an investment property for sale, give Tena D a call today! 303-452-5853