It comes a point where investors start thinking of selling their property. You may be selling the property with an intention of either having some cash, acquiring new property or even when you need to retire from the real estate investment altogether. Selling of unoccupied home investment may relatively be cut and also dried. You may stage the property, landscape it, then list and after this you are ready to wait for some offers. When it comes to a property that is occupied by the tenants, the procedure can be more complicated than you may expect. To start with, you will have to keenly eye on the kind of lease which you are having in place.
What To Do If There Are Tenants Living In The Home
You have tenants who are still living in the property that you need to sell and this becomes a big challenge to you as you cannot just wake up one day and tell them to move out. Selling rental property with tenants who pay on monthly lease may need you to follow the process below:
- First, you should think of giving your tenants a notice that is written.
- You have to remind the tenants to remove all their belongings before the deadline that you have set.
- You may take an action of beginning the eviction process if you see that the tenants have not moved out by the time of the date which is scheduled.
There are those tenants who have a lease term that is fixed with no early termination clause. In this state the landlords have a less flexibility while the tenants have an added advantage.
Guide To Follow If The Property Lease Is Fixed-Term
Unless their lease has early termination clause, tenants have every right of staying through the term of lease if they have paid the rent and follow all the lease rules. You can wait for the expiry of the lease then inform them about your desire of selling and giving them reasonable notice.
Another way of moving out tenants from your property is by paying them to vacate. Fixed-term lease tenants can be open if you ask them for a negotiation. In this negotiation, you may explain to what makes you think of moving them out and then state to them on how you will pay them so as to vacate.
You may also be having a tenant who does love your home and is looking on a way to buy the property from you. This would be of benefit to both of you as it leaves a quick and a painless sell. You may provide the seller financing, where the tenant gives you regular payment which takes into account the interest, schedule of payment as well as the default situations, if they are not able to have a traditional financing.
The last option is to sell using an active lease. The new buyer in this process will purchase the property which is occupied by a tenant.
