What are the things that you should take note of when selling a property with existing tenants?
Rental housing has always been considered a good long-term investment that can yield good results. However, various factors such as the country’s economic performance, interest rates, population growth, migration, and house supply can affect the performance and pricing of this market. Recently, the grave effects of the COVID-19 pandemic have pushed some house owners to re-evaluate and sell their rental properties. With the looming financial crisis brought about by the pandemic, the maintenance of multiple properties may have forced most homeowners with multiple properties to give up their real estate.
As such, the common problem that homeowners face when putting their properties up for sale is its existing homeowners — how do they sell their property that has existing tenants in it? Read the article below to find the answer.
5 Useful Tips When Selling a Property with Existing Tenants:
It is not easy to sell properties with existing tenants without doing a little bit of research first. As such, we have provided below 5 tips on how you can sell your house that still have your tenants in them:
1. When selling occupied property, maintain open communication with existing tenants and offer help whenever possible
You have to maintain open communication and transparency with your tenants regarding your plans for the property. For long-term tenants, it is not easy to lose a place they once called their home. You have to give notice to the tenant to vacate due to sale and carefully explain so that they understand the reason behind your decision. Is it because holding on to the property has become more financially unsustainable for you? Is it because you’re relocating? Giving them a notice months before you put your property up for sale will greatly help them come up with a plan for relocation. It will also help them become more emotionally prepared.
Communicating with your tenants regarding their length of stay is also necessary. Will you wait until the lease contract expires, or will you want them to move out soon through modification of the contract? Be considerate of the situation of the tenants so that you can reach a mutual agreement.
Whenever applicable, you may also extend your help to your tenants. Whether it be relocation options or monetary compensation, make sure that there is fair compensation for the trouble caused to the tenants.
Lastly, don’t forget to maintain a friendly and patient attitude when dealing with your tenants. Know your tenant’s rights covered by Florida law. Moving and relocating may cause a great deal of stress for them, so sympathize with them.
2. Schedule open homes for staging
As you maintain open communication, don’t forget to tell your tenants your plans about your open homes. The rights of the tenant regarding the open house should be observed. Make sure that the schedule you select for the open house is okay and convenient for them. As much as possible, tenants should not be around the property during the showings.
You also need to communicate with them regarding your plans for staging. Let your tenants know if you plan to re-arrange any furniture/personal belongings or renovate any facility to make it more visually appealing for open homes. While it is important to keep homes tidy, neat, and beautiful during open homes or photography sessions, it is also crucial that the tenants feel secure about their belongings. After the showings, you can also offer to shoulder the cleaning expenses.
3. Review existing leasing contract
Before planning to sell your property, make sure to review your existing leasing contract first. Give a notice to the tenant to vacate due to sale; Consult with a legal professional regarding the leasing contract to ensure that you protect both your and the tenant’s rights before proceeding with the plan. You may also consult about local and national relevant legislations about rental properties. Reviewing the contract will also help you map out your plans for your property to ensure that the process will be efficient and hassle-free.
4. Ensure that tenant doesn’t have existing debt before leaving
To avoid any dispute in the future, make sure that the tenant’s bills are up to date. These bills range from utilities to rental dues. Ensuring that all bills are paid ahead of the move-out date will surely help in making the whole process smooth and pleasant. In settling the finances, make sure that agreements regarding other non-utility-related money (e.g. security deposit) are settled in accordance with the contract.
5. Get a real estate agent to help you out when selling a property with existing tenants
A real estate agent or realtor knows the ins and outs of real estate, as well as the up-to-date information about the real estate market. Thus, consulting with the realtors will greatly help you get additional pointers on how to deal with your tenants more professionally. With their guidance and expertise, your plans for selling the house will be more efficient. They will also help you find new homeowners who’ll definitely love the home you once loved!
You may also team up with a real estate photography team to showcase the beauty of your listing! Fast Promo USA offers mainly Miami real estate photography services, but we also work on general South Florida real estate photography. If you’re looking for real estate photography in Miami, then you’re in luck!
Now that you’ve read all the tips, below are some of the pandemic-related considerations when selling your house to tenants. Of course, realtors have to keep up with the times; not only in the market trend but also in the current situation.
Notice To Tenant to Vacate due to Sale – Florida Residential Landlord-Tenant Act.
Selling a property with tenants can be quite hard. You can not just evict the tenants, you also need to understand that you have to think of the welfare of current tenants, the property, and the homebuyers
It is important that before selling a property, the seller must give notice to the tenant to vacate due to the sale. In this way, the tenant would know and prepare for the evacuation and also avoid conflict between seller and tenant. Be respectful all throughout the process as you will need the tenant’s full cooperation in selling the property.
You also need to have knowledge of the tenant’s rights. In Florida, the rights and duties of tenants and landlords are guided by the Florida Residential Landlord-Tenant Act. “Once the property is rented, the dwelling is the tenant’s to lawfully use. The landlord may only enter the dwelling in order to inspect the premises or to make necessary or agreed-upon repairs, but only if he or she first gives the tenant reasonable notice and comes at a convenient time.”
So, any COVID-19 Considerations?
1. Wear Personal Protective Equipment
During open houses, don’t forget to wear your personal protective equipment — masks and face shields. A study has shown that they greatly reduce the chances of contracting the virus. Therefore, for the safety and benefit of everyone, wearing them at all times can save lives. Here in Fast Promo USA, we have our safety measures when we do Miami real estate photography.
2. Follow Existing Safety Protocols
Look up some of the local and national existing safety protocols in line with the pandemic before proceeding with personal visits. These protocols may cover some rules. They include maintaining good hygiene (i.e. sanitizing), contract tracking, ensuring that everyone involved does not experience any symptoms, physical distancing, and more. After leaving the place, you may also offer to disinfect the place for the safety of the tenants.
Florida, specifically Miami, already has COVID-19 safety protocols in place. If you’re also planning to incorporate real estate photography in one of your open houses, make sure to check these protocols.
3. Consider virtual options
When it becomes nearly impossible to conduct personal open houses, you may also want to consider doing virtual tours. These are ideal for those who don’t want to go out or those who live far but want to check the house out. We, in Fast Promo USA, offer virtual tour services for realtors who wish to follow this option for safety purposes. We also offer real estate photography services in Miami for those who need beautiful photos for their listings. Check out our website for some of our portfolios on Florida real estate photography.
What do you think about these tips? Have any questions? If you have considered real estate photography will help you, call us at the phone numbers below.
☎️ 786-788-8751 South Florida