Tenants come in two “flavors,” affable and nightmarish. We hope, for your sake, that when it comes time to sell your rental your tenants are the former. The whole process will go much smoother.
If they are disagreeable, you may want to take option 1 when deciding when to list your rental property.
Many landlords decide that their tenants aren’t the type of people to tolerate the home sale process so they decide to wait until the lease is up.
The biggest problem with this decision is that the property will be vacant, and vacant homes don’t show as well as furnished homes. Of course, you can get around this problem by hiring a professional home stager.
If you’re on a tight budget, have only the most important rooms staged, such as the kitchen, bathrooms, master bedroom and garage.
Then, consider that you’ll be on the hook for the mortgage payments until the home closes escrow. Speak with your agent about how long it may take to ready the home for sale, market the home and to close escrow.
This will help you decide if you can afford the carrying costs of the home without tenants in place.
The lack of tenants, on the other hand, makes it easier to perform any needed repairs or updates to the home. It also offers maximum flexibility to buyers’ agents.
There are many things to consider if you choose to list the home while the tenants are still living in it. As previously mentioned, you’ll avoid having to pay the carrying costs of the home while it’s for sale.
Another advantage to listing now is that the home will be attractive to investors. If the tenants want to remain after the sale, they are much more likely to be cooperative during the process and the potential investor/buyer has the bonus of in-place tenants when the purchase closes.
The disadvantages of this scenario are many, however. Here are a few things to consider:
There are ways to entice your tenants to be more cooperative. Consider the following concessions:
Review the lease and, if necessary, consult with your attorney before you make a final decision on which path to take. We’re happy to work with you on timing the sale for your needs.
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