Selling your house requires extra considerations when it’s rented. A sitting tenant retains the right to continue living in the house after the sale for the remainder of their lease.  Tenant rights may also make showing the home more challenging even if they are cooperative. Consider the following as you move forward with the sale.

Notify your tenant of the sale

When you first notify the tenant that you intend to sell the house, offer it to them before you list it. Even if you know they are not in a financial position to purchase the property, this will go a long way toward building a bridge of cooperation.  Take the time to talk to your tenants and explain why you are selling. Ask them what you can do to help them through the process.

Be considerate when arranging showings

Tenants have statutory rights that must be respected. Most tenancy agreements contain a clause specifying that tenants must allow showings. However, although the tenant must give consent, they can demand a schedule that is most convenient to them. It is also good practice to post language in all advertising stating that the tenant should not be disturbed. 

Most of the tenants can be managed with respect, care, and consideration. Unfortunately there are tenants who try to make things more difficult than necessary. You may offer to terminate the lease if that would present a better outcome for both concerned.

Selling your home with a tenant has its pros and cons

Selling a tenanted property has its advantages. The main benefit of selling a house with a sitting tenant is that a prospective landlord buyer will have much of their work done for them. On the other hand, a disadvantage is that you limit your market to only those buyers wanting to be a landlord. Many wishing to buy a family home will not consider a rented property even if the lease term will end soon.

• It guarantees an income from the start and ensures a reliable rental income. 
• The buyer has access to the rental history.
• There is no rental cost for the new landlord such as real estate fees.
• Sometimes it takes months to sell a house. By selling with sitting tenants, the current homeowner is guaranteed equity until the sale is complete.

Conclusion

Having a good relationship with a sitting tenant will likely improve any selling experience. However, finding the right buyer willing to accept the tenant and current agreement may prove challenging. Contacting a professional real estate investor such as RealtyWithRich may be the best option. 

RealtyWithRich will provide an easy way to sell your house with a sitting tenant, and we are happy to help you through the sale process from start to finish. Please contact us to discuss your many options.