You might be wondering whether selling a house with tenants is okay and legal under the law. Good news because it is possible.
Selling a house with tenants, however, is a challenging and often complicated process that requires careful consideration, especially for the tenants. As the owner, as well as the seller, you have to make sure that the transaction would not violate your tenant’s rights.
Having said that, if this is your first time selling a rental property, our guide can help you. It contains an overview of how to successfully sell a house with tenants living in it, including tips on how to negotiate with tenants, what documents are needed, and other important considerations.
Things to Do When Selling House with Tenants
Below are a few tips on how to successfully sell an occupied rental property.
Know Your Lease Terms and Conditions
To legally sell an occupied rental property, the first thing you must do is review the lease’s terms and conditions. Rental property owners need to provide a written contract stating all the things the tenant must know about the lease. Hence, you should have one.
Understanding the content of the lease agreement can help you understand and execute properly your obligations as the landlord and seller. It will guide you by making sure that your next actions are within the law and does not violate your tenant’s right.
It is also important to understand what you can and cannot do as a seller. This way, you will avoid facing legal repercussions or putting yourself in an uncomfortable situation between you and your tenant.
Although it is not highly recommended, implementing the “early termination” clause in your lease contract is one way to convince your tenants to move out of your rental property. Most leasing contracts come with such a clause given that it can only be executed within a specific situation.
It is why, as explained earlier, it is crucial to review your lease’s terms and conditions before making any moves.
Notify Your Tenants Early
After reviewing the lease’s terms and conditions, the next step is to notify your tenant’s decision to sell the property. It is important to inform them early too so that they can make plans and find a new place to move into. It could have legal repercussions too if you would not inform them early as possible because, as tenants and taxpayers, they have the right to know.
Your tenants must be informed in all stages of the process too. From when you decide to put the house on the market and right up until completion day, your tenants should know the status of the property. Doing so assures that everyone involved is aware and that both parties are kept in the loop throughout.
Pay Your Tenants to Leave
As everyone knows, money talks. If you want your tenants to move out quickly, try paying them. It is particularly beneficial for tenants who are too stubborn to leave. Usually because oftentimes, they are financially troubled, and providing a “moving out compensation” would help them find a new place.
But providing a monetary incentive for your tenants to leave also has a few disadvantages. And these include potential legal issues that may arise from offering money in exchange for leaving and any financial losses that may occur if your tenants refuse the offer.
Sell Your House As-Is
Selling a rental property entails a number of legalities that you must carefully handle in order to protect both the tenant and the future owner. And such a process can be mentally taxing for an inexperienced homeowner.
Selling it to a Houston real estate investor such as Get Your Fair Offer, however, could rid you of that demanding procedure! Reaching out to a real estate investor is the best option if you do not have time and knowledge on how to sell a house with tenants.
These companies are willing to buy houses as-is and in cash, which is a double win for property owners like you. They give the best and fair price your property deserves as well.
Thus, selling it to a real estate investor is wiser rather than listing it on the marketplace.
Selling House with Tenants Is Challenging
Selling an occupied rental property is indeed a tough and demanding process. The legal aspects and the documents it require can be challenging for many. If you want a fast, hassle-free, and reliable way to profit off of your property, then contact Get Your Fair Offer now and consider your house sold!
Get Your Fair Offer is one of Houston’s trustworthy real estate investors. We guarantee to give you the best and fair price offer only, which your property deserves.
Reach out to us now and get a REAL offer! Call us at 281-709-2999.