Most problem that you will face when selling your property is its existing home owners — selling your property that has existing tenants in it? Read the article below to find the answer.
Selling your property with existing tenants is not easy. Rental housing has always been measured as a good investment that can yields good results. It’s various factors such as the country’s economic performance, interest rates, population growth, migration, and house supply can affect the performance and pricing of this market. The effects of the COVID-19 pandemic have pushed some house owners to re-evaluate and sell their rental properties.
With the financial crisis brought by the pandemic, the maintenance of several properties may have forced most homeowners with a lot of properties to give up their real estate.
Top 5 Tips When Selling House with Existing Tenants:
It is not easy to sell properties with existing tenants without doing a little bit of a research. So, we have covered 5 tips on how you can sell your house that still have your tenants in them:
1. Maintain open communication with existing tenants and offer help when it’s possible
You have to maintain a communication with your tenants about your plans for the property. For long-term tenants, it is not easy to move out of a place they once called their home. You have to explain so that they understand your reason. Is it because holding on to the property has become more financially unmaintainable for you? Is it because you’re moving?
Giving them notice months before you put your property up for sale will help them come up with a plan for relocation. It will also help them become prepared.
Communicating with your tenants regarding their length of stay is also important. Will you wait until the lease contract expires, or do you want them to move out soon through change of the contract? Be considerate with the situation of the tenants so that you can reach a common agreement.
When appropriate, you may also offer your help to your tenants. Whether it be relocation options or monetary compensation, make sure that there is a fair compensation for the tenants.
And don’t forget to maintain a friendly and patient attitude when speaking with your tenants. Moving and relocating may cause a great deal of stress for them, so empathize with them.
2. Preparing the home for staging
As you maintain an open communication, don’t forget to tell your tenants your plans about your open homes. Make sure that the schedule you select for the open house is okay and convenient for them. Tenants shouldn’t be around the property during the showing.
You also need to communicate to them on your plan for staging. Let them know if you plan to re-arrange any furniture or renovate to make it more appealing for open homes. It is important to keep your home tidy, neat, and beautiful during open homes or photography sessions, it is also critical that the tenants feel secure about their belongings. After the showings, you can also offer to pay for the cleaning expenses.
3. Review existing leasing contract
Before selling your property, make sure to review your existing leasing contract first. Consult with a legal professional for the leasing contract to ensure that you protect both yours and the tenant’s rights before proceeding with the plan. You may also consult about local and national relevant legislations about rental properties. Reviewing the contract will also help you map out your plans for your property so ensure that the process will be effective and hassle-free.
4. Ensure that tenant doesn’t have existing debt before leaving
To avoid any dispute in the future, make sure that the tenant’s bills are up to date. These bills range from utilities to rental dues. Ensure that all bills are paid ahead of the move out date will surely help in making the whole process smooth and agreeable. In settling the finances, make sure that agreements regarding other non-utility related money (e.g. security deposit) are settled in accordance to the contract.
5. Get assistance from FastBuyHouse
A FastBuyHouse real estate specialist knows the ins and outs of real estate, as well as the up-to-date information about the real estate market. Thus, consulting with us will greatly help you get additional pointers on how to deal with your tenants more professionally. With our guidance and expertise, your plans for selling the house will be more efficient.
Now that you’ve read all the tips, below are some of the pandemic-related attentions when selling your house with tenants. Of course, realtors have to keep up with the times — not only in the market trend, but also in the current situation.
1. Wear Personal Protective Equipment
During open houses, don’t forget to wear your personal protective equipment, masks and face shields. A study has shown that they help reduce the chances of getting the Covid-19 virus. For the safety and benefit of everyone, wearing them at all times can save lives.
2. Follow Existing Safety Protocols
Look up for some existing safety protocols in line with the pandemic before proceeding with personal visits. These protocols may cover some rules, such as maintaining good hygiene (i.e. sanitizing), contact tracking, ensuring that everyone involved doesn’t experience any symptoms, physical distancing, and more. After leaving the place, you may also want to disinfect the place for the safety of the tenants.