So, you’ve decided that now is the time for you to sell your rental property. The market is booming and you’ve built in equity to the space, but you’re not sure if you can sell it while there are tenants. While tenants have rights to be in the property, there are a couple different options for how you can still sell your rental property.
- Be open and honest with tenants.
- List the details.
- Know how to deal with upset tenants.
- Know the market for the rental properties.
Inform Tenants
Whether or not your tenants are on a month-to-month or fixed-term lease, it is important to inform them about the sale of the property. It’s worth it to look up the laws of your state regarding how much notice to give them before meeting with them, so that you don’t encroach on their rights as tenants. Typically, you’re required to give either 30 or 60 days notice that you are selling the property. After you check this, send them a letter or meet with them to discuss that you’re selling the property and that you will be showing their unit from time to time. It is essential to let them know that even in the event that your property sells their lease agreement will still be in effect. The new buyer will have to follow all terms of the tenants original lease for the duration of the lease.
List All Details
It can be stressful for a tenant to know that their rental property is being sold, so listing all details for what will happen going forward will help put their minds at ease. Most of the time, if a tenant is a good tenant, a landlord will allow for them to stay even if the property is sold. If they are a bad tenant, don’t pay rent on time or violate other conditions of the lease, there are a few things to keep in mind. If the delinquent tenant is on a month-to-month lease, based on the laws regarding notice, you can send them a letter stating when their lease ends and the date they should vacate by. If they are on a fixed-term lease, they can continue living there for the duration of the lease and then vacate on the agreed upon date, unless there is an early termination clause in the lease.
If there is an early termination clause, you can terminate the lease and ask them to move out. If the tenant isn’t in good standing, this can also be used to terminate the lease. After going over these details, you should let them know how you will go about showing their unit. 24 hours is the amount of time to typically give them before showing their unit. You should also go over what time of day you will show their unit, and how their unit should be presented.
Know How to Deal with Upset Tenants
It’s understandable that not all tenants will be happy with this news, so it’s essential to know how to deal with angry and upset tenants. If a tenant refuses to let you show their unit, you’re allowed to show it anyway. If they have vocalized their concerns, address them as best you can to make them happy. For example, they might be worried that someone will take something while in their unit– assure them that you’ll keep a close watch. If they’re upset about how often you’re showing the unit, try and limit showings to only once or twice a week. If they are still upset and uncooperative about showings, you can evict them. This should be your very last resort, and there are typically still laws regarding how much time they have before they have to vacate so be aware of this.
Potential Buyers
While this probably comes as no surprise, most prospective buyers of rental properties will be thrilled if there are still tenants in the building. This will save them the time and effort of having to find trustworthy tenants, so this can be a major plus. In many cases the new buyer will allow the tenant to stay in the property. The new landlord will be required by law to abide by the current lease terms of the tenant’s original lease, and cannot change it for the duration of the lease. The tenant will be given the new owner’s contact info, and the new owner will be responsible for the rental property. Once a property has changed hands to a new owner, the tenant will need to send their rent checks or concerns to this new owner.
St. Louis as-is home buyers are another potential buyer of rental properties. These buyers see as-is properties as investments, and will save you the stress of waiting on offers. They can provide you with an all-cash offer in as little as a day, and have the resources to give you the absolute most for your rental property.If you’re unsure of where to look for a St. Louis as-is home buyer, Evervest Home Buyers is a local favorite that has been around since 1996. We have sold more than 700 homes in the area, and are passionate about making the process hassle-free. If you’re interested in scheduling a consultation, call (314) 730-0366 or Contact Us today!