Sell With Tenants

Here are 5 Steps For Selling Your House With Tenants:

Selling your house can in itself be a stressful job, but how can you sell a house if you already have tenants in place? Below are five steps to sell your home if it currently tenanted.

1: Task To And Negotiate With Tenants

The first step you sell your house privately to tenants is notifying tenants that the property will be available for sale, and asking tenants if they are interested in buying the home. If the tenants had been in place for a couple of years, they might have fallen in love with the property or really enjoyed their children's school district. They might love the area too and want to live there permanently. This will give them a perfect opportunity to buy the house they think they love. Let them apply for a loan on your property if they are interested, and the purchase process should be pleasant and easy. You may also want to give the tenant an owner financing package if they are unable to apply with a conventional lender. This may also be ideal if they have a great history of payments, and you can keep looking forward to monthly payments unless you need the lump sum of cash now.

2: Review The Existing Lease

The first step in selling the house to renters is to check the contract you have with the existing tenants in place. Many contracts would contain some kind of agreement on what if the property sells. For certain cases, when the property sells the occupant has a fixed timeframe for vacating the house, typically about 30 days. Your tenants may or may not be in a position to find new housing at the time of sale, so the sooner you're considering selling, the better to tell your tenants, particularly if you're very serious about listing immediately. When your property is on a hot market, the house can sell quicker than you expect and the tenants will not be able to sell it in time.

3: Wait For The Lease To Expire

Letting the current lease expire and not renewing it will be one of the least difficult measures to sell your house with tenants. If you still owe on the property, you may still want to accept month-to-month payments to cover your expenses or mortgage payments, but you would need to make it crystal clear to the tenants that if they had the move-out clause in their lease, they would have to vacate the property. Having the tenant leave without accepting month-to-month payments at the end of the lease may leave you to bear the cost of the property on your own until it sells.

4: Advertise With The Current Tenants Still Living In The Property

When advertising on and you can not wait until the lease ends, the next step to sell your house to tenants will be to list the house with tenants in place. This can work to your advantage, particularly if the tenants agree to leave during house shows as the property is already being staged. On the other hand, the tenants may be upset by the sale of the house and may cause problems when the house is shown, especially if you've had a rocky past with the tenant. Be prepared that, when they leave, they may also cause property damage, especially if they leave on bad terms.

5: Compensate The Tenant Financially

The fifth stage for selling your house to tenants will be offering them payment to vacate the home. It can help to make any awkward house shows smooth or help them move into their new home. You can pay them also by offering a discounted rental rate. 

A final word: if you choose to sell a house in Birmingham with renters, selling the house to a direct buyer is the cheapest, quickest, and most convenient way. It will minimise showings of land, deal with angry tenants and the expense of placing it on the MLS.