We all know the real estate market is on fire, and as a landlord that owns a rental property, you may want to cash in on this hot sales market. If you're going to sell your tenant-occupied rental property, you must know and understand what to expect and how to sell your rental property.
Tenant-occupied rental homes are much harder to sell than a vacant home ready for showings. Property managers in Orlando and around the country know how inconvenient it can be to show an occupied home to prospective buyers. This article will learn how to sell a tenant-occupied property and what you need to know as a landlord.
Follow The Terms Of Your Lease Agreement
On all occasions, both the landlord and tenant must abide by the terms of the lease agreement. Your lease agreement should clearly state how the sale of your rental property will operate if you decide to sell during the occupancy. Essential terms to include in your lease agreement are:
Sale Provision in Your Lease
Entry Notification For Showings (How Long)
Notices Once the Property Has Sold
Security Deposit Transfer At Closing
- If you do not follow the terms of your lease agreement when it comes to selling your rental property, we can tell you; your tenant will not follow the terms.
Tenant Relations Matter
If your tenant does not like you, chances are they will not cooperate with the sale of your rental home. If you are a self-managing rental property owner, tenant relations are significant. If you have a healthy relationship with your tenant, it can be the difference between a sold property and an expired listing.
How to create a healthy relationship with your tenant:
Provide Excellent Service
Respond to Tenant Requests
Provide Quick & Quality Maintenance
Clearly, State How Things will Operate
Talk with Your Tenant Before Selling - Don't Just List It and Sell It
Show Appreciation if They Are Cooperating with The Sale
If you have a quality relationship with your tenants and show compassion, they will understand the property has to be clean, show-ready, and help with the sale of the property.
Provide Sufficient Notice
There is nothing worse than a random person showing up at your house. If you do not provide sufficient notice of property tours, then the home will show horribly. As a professional property management company in Orlando, we have seen homeowners and real estate investors try and provide their tenants a few hours before property showings.
By providing your tenants a well-written and respectful notice of showings and updates, they will respect your time and be much more willing to work with you. As a landlord, a small gesture can go a long way.
Schedule Showings With Their Schedule
We always suggest showing and entering a tenant-occupied property around the tenant's schedule. As the landlord, you have to understand that your tenant also has a life juggling, work, family, etc.
- Being considerate of your tenant's time and schedule can be extremely helpful and beneficial for both parties in selling your property. Some days and times work best for showing a property for sale. As an Orlando property management company, we always check with our tenant's schedule and arrange a convenient day such as Saturday or Wednesday to schedule property tours; we group the showings as open houses. That way, you respect the tenant's time and schedule. Think about it; if you had one showing every day of the week, your tenant would get extremely upset. Group your showings to once or twice a week at one specific time.
Let Your Tenant GO
We have seen rental property owners in the Orlando area needing to sell their property fast. If you are a landlord that needs to sell your property fast, then you may want to consider letting your tenant vacate the property early, without penalty. If you have a solid relationship with your tenant and provide sufficient notice, provide helpful information, typically, you can allow your tenant to find a new home to rent.
Letting your tenant out of their lease early may seem like a bad idea, but if you need to sell your rental property, this will do the trick. In Orlando, we see rental properties sitting longer than vacant homes. Later in this article, we will explain why vacant properties sell for more money and quicker than tenant-occupied properties.
Communicate Once Your Rental Sells
Many tenants enjoy being in the loop; if your tenant-occupied property is sold, make sure they know the property has a new property owner. When one of our rental properties is sold, we provide the tenant with a gentle introduction of the new property owner or new property management company.
People, in general, do not like uncertainty. Neither do tenants, and a tenant will want to know:
Where to Pay Rent
Who to Pay Rent To
Is Their Current Lease Still Valid?
Who Handles Rental Property Maintenance?
Who Do They Contact In case of Emergency?
- It is essential to explain to your tenant all the questions they might have.
Partner With Professional Property Managers
We always recommend having a property management company or property manager that can handle all the aspects of getting your rental property managed properly and assisting in the sale of your property.
Many rental property owners and landlords need guidance on handling certain situations that arise, such as selling their tenant-occupied property. Property management companies have gone through this process many times and know how to handle any situation.
Our Opinion Of Selling a Tenant Occupied Property
As a professional property management company, we always suggest NEVER selling a TENANT OCCUPIED RENTAL PROPERTY. We always advise our homeowners and real estate investors to wait until their tenant's lease expires.
A tenant-occupied property will always show much worse than a vacant property. A tenant has their own life to worry about. When a prospective buyer enters your rental property with kids running around, pets barking, play toys scattered around the house, dirty and smelly; typically, they lose interest in your listing pretty quickly.
- Showing a tenant-occupied property to buyers is a scheduling nightmare. If you have a troubled tenant, do not even think about listing your property for sale. Most likely, you will not be able to enter the property to show.
Selling Your Tenant Occupied Property: Property Managers Summary
If you must sell your rental property, we suggest using the mentioned tips for getting your rental sold. But, if you have time to wait, we always recommend waiting until your tenant moves out.
Hiring a professional property manager to assist your rental property and the sale of your rental home can make all the difference. Feel free to reach out to The Listing Real Estate Management today; we are the best choice for Orlando property management.