If you still have tenants living in your property when you are ready to sell, there are certain procedures you will need to follow.
Both landlords and tenants have rights when it comes to vacating a rental property, so it is important you are aware of the law in your respective state.
Initially, you may think that selling a property with tenants will be too difficult, however there are several benefits. Some of the pros and cons include:
|You will still be receiving rent throughout the selling process||You will need to provide adequate notice to the tenant before having open inspections|
|Other investors may be attracted to a property that is already tenanted as they will receive rental income straight away.||Tenants may not present the property in its best possible light, which could devalue it.|
|Having a tenant living in the property can reassure investors that it is possible to rent this property out.||Problems may start to arise between you and the tenant if the property takes a while to sell.|
If you are considering selling a tenanted property, the process will be a little different and will require a lot of communication with the tenant. If you are able to keep the lines of communication open between you and the tenant, it may help avoid problems down the track. Listed below are a few points you will need to consider before putting the property up for sale.
Selling the property is not a reason to evict a tenant. If you have a fixed term agreement with the tenant, they are entitled to stay until the end of the term. Each state has different notice requirements. Click on the links below to get more information for your state.
If there are prospective buyers who would like to inspect the property, you need to give appropriate notice to the tenant.
Set aside a few hours per week with the tenant where you can let potential buyers inspect the property. This way the tenant will know when they have to be out of the house and have plenty of time to present the property in its best light. You may also want to consider hiring a cleaner to come in before each inspection to give the property a professional clean.
As the owner of the property, you are allowed to display a for sale sign on the property. However, when it comes to taking photos of the property, you may need to negotiate with the tenant. Photos of the interior and exterior are vital for giving a realistic overview of the property. Therefore, you will want to show off the property in its best possible light and not have too many personal possessions in the photo.
Speak with your tenant about your ideas for the photos and organise a day where a photographer can come to the property. This way, the tenant will have time to remove any unnecessary items.
See if you qualify. To get a more accurate idea of how much you can borrow with State Custodians,