What is the quickest, hassle-free way to sell a property with tenants still living there?
In the state of California, homeowners must adhere to the rental agreement terms while listing a home for sale. Selling a property while others are still living there requires some forethought, but can be done seamlessly if the following steps are addressed.
1. Know The Laws Of Your State
Each state may differ on its laws regarding the sale of tenant-occupied homes. The state of California requires landlords to give a 120-day to tenants of their intent to sell. This notice must be done before any showings can take place.
Along with this, tenants also need at least 24-hours of verbal notice before every property showing. If a property is in foreclosure, renters are guaranteed a notice of 60 days to vacate the property. Be sure to do research to confirm you are following the rules and regulations of your state regarding home sales with tenants.
2. Consider Tenant Privacy
Once you have familiarized yourself with the law, the next step is to communicate with your tenants. Beyond giving the required notice on your intent to sell, you’ll have to take your tenants’ privacy rights into consideration.
Tenants have a right to privacy during a property listing and will likely prefer to avoid strangers who are trying to see the property’s interior without advanced notice. Likewise, it’s essential to be clear and communicative with potential buyers about the boundaries you decide for property showings. Make it known that the property still has tenants. You may choose to only do virtual tours of the interior to minimize disturbance with the current tenants.
3. Provide Ample Interior Photos
Who you choose to sell your property to will have a direct effect on your tenants. An end buyer is someone who intends to live in the property they purchase, requiring current occupants to vacate. If you prefer to keep your tenants as inconvenienced as possible, selling to an end buyer might not be the route you choose.
Selling to a property investor does not guarantee tenants won’t have to move, but there is a higher likelihood that the investor will be okay with maintaining the current so long as they are in good standing with their rent payments. However, it’s also possible that an investor may want to have the home delivered vacant so they can make improvements to resell the home.
Oftentimes, selling to an investor offers more flexibility where tenants are concerned. Investors are already in the business of managing rentals and are more familiar purchasing on seller finance which is a benefit to other investors who do not want to manage properties any more, but still want to have cashflow that comes from the seller carrying back a note.
4. Decide Between an End Buyer or Property Investor
Who you choose to sell your property to will have a direct effect on your tenants. An end buyer is someone who intends to live in the property they purchase, requiring current occupants to vacate. If you prefer to keep your tenants as inconvenienced as possible, selling to an end buyer might not be the route you choose.
Selling to a property investor does not guarantee tenants won’t have to move, but there is a higher likelihood that the investor will be okay with maintaining the current tenants so long as they are in good standing with their payments. However, it’s also possible that an investor may want to have the home delivered vacant so they can make improvements to resell the home.
Oftentimes, selling to an investor offers more flexibility where tenants are concerned. Investors are already in the business of managing rentals and are more familiar with purchasing on seller finance. This can be a benefit to other investors who do not want to manage properties any more, but still want to have cashflow that comes from the seller carrying back a note.
5. Sell Your Property As-Is To Us
If you’re looking for a streamlined way to sell your property with experts to lead the way, sell your property to Quickturn Property Solutions. Simply request a cash offer, wait for our call, and get started on getting the home off your hands for good.
The Property Sells. Now What?
While it is up to the new owner on whether they intend to continue the tenants’ lease or request them to move, it’s important to close up your own relationship with the tenants. This includes, notifying them when an offer is made, speaking with buyers on their intentions on vacating or maintaining the tenants, and saying goodbyes.