Core Properties STL Staff asked 3 years ago
Selling a Rental Property with Tenants
Core Properties STL Staff answered 3 years ago
Sell My Rental Property St. Louis, MO
Have a rental property and think it’s time to sell it? The market is in your favour but you still have tenants and are not sure if you’re able to sell it? While you may have tenants you do still have options. Here are a few pointers if you still have tenants.
- be upfront
- list all the details
- know how to handle tenants if they get upset
- know the market
Inform Your Tenants
Whether month-to-month or a fixed lease it is very important to inform your tenants if you are planning on selling the property. It is also in your best interest to look up the laws in regards to how much notice you need to give so you’re not infringing on your tenant’s rights. You should either meet in person or send a letter to let them know you’re planning on selling and that you will be showing the property periodically. It is extremely important to let them know that once the property does sell that their lease is still in effect and that the new owners will have to abide by the agreement.
Lay Out All the Details
Finding out your home is being sold can be very stressful and emotional. It’s important, as the property owner, to lay out all the details for your tenant to help put their minds at ease. Depending on the type of tenant they are you can choose whether you want them to stay or leave. Sometimes an early termination clause is included in the lease. If this is the case, you can then ask the tenant to move out, and if the tenant is in poor standing you can use this as cause for termination of their lease. You should also go over the details of any viewings, such as how much notice you will be giving, the time of day in which it will take place, and any expectations on how the unit should look.
How to Deal With Upset Tenants
It’s a give-in that some tenants will not be happy about this development, so you need to know ahead of time how you’re going to handle upset and/or angry tenants. Know that you are allowed to show the unit even if the tenant refuses. Address your tenant’s questions and concerns as best as you can.
Potential Buyers
In the majority of cases, potential buyers are actually quite happy when there are already tenants in the building. This saves them both time and effort in finding good tenants themselves. Even though the new buyer is required by law to honour the current lease agreements the majority of new buyers will allow the current tenants to stay. The new buyer will not be able to make any changes to the lease until its renewal date. All contact information will be given to the tenant and the new buyer will then be responsible for the property.
If you have a rental property and are wanting to sell it then give the experts at Core Properties St. Louis a call. We’re here to answer all of your questions and address any concerns you may have. We will assist you every step of the way.