Existing tenants can certainly complicate the process of selling a home in Seattle rental property. Of course, there is nothing against selling a property occupied by tenants, though it can limit your buyer pool. While many buyers like the idea of earning rental income from a property, they may find an existing tenant a bit of a hassle, as many property owners like having a choice of the tenants in their properties.
Regardless of the way you choose to sell your tenant-occupied property, you will need to make sure that you have a responsible, ethical, and legal plan in place to meet those currents tenants’ needs. In this article, we will show you how to sell a home occupied by tenants.
Don’t Sell Until the Lease Term Ends
One of the simplest options you have is to wait for the lease term to end before you sell, especially if your rental property is making you profit. You can then prep the home to sell once the tenants are gone.
If your tenant has violated any agreement terms, you could terminate the lease prior to expiration. From refusing to pay rent to damaging the property, there are plenty of eviction justifications. Of course, your eviction process could put you through the strainer of legal fees and take many months depending on where you live, meaning you need to decide if it’s worth it.
Sell Your Property to an Investor
You could choose to sell your property to an investor off the market. If your property has reliable, long-term tenants living in it, you could turn it into an attractive offer for the investor.
On the other hand, the value of your property could be negatively-impacted if your tenants pay below market-rent.
Provide a Monetary Incentive
If you’d like a vacant property when you sell it, you could provide your tenants with a monetary incentive for them to move out. People often call this a “cash for keys” offer. Compared to a traditional eviction process, the cash for keys process if far less time-consuming and much less expensive. Plus, you’ll be able to reach a wider market of potential buyers and get your property off the market faster.
If you go the cash for keys route, you want to make sure that you get a written agreement in place. There are plenty of forms that you can find online for this type of agreement.
As to how much you should offer your tenant for the move, you need to make sure to consider their need for moving expenses, security deposits for another rental, temporary housing, and rent differences if rental properties in the area cost more.
The important thing is that you are accommodating and friendly with your tenants, Sit them down and have a straightforward and honest conversation with them about why you are selling the property and see if offering them some sort of incentive might help the situation.
Being kind and clear can go a long way and can help your situation when trying to get tenants to agree to the terms you’ve set in place to sell your house in Kirkland. Now, you should know how to sell a home occupied by tenants. For any other questions, contact us here at HelloPad.