If you’re considering selling a rental property, you may be wondering how to go about it. Especially if you have a tenant who pays his rent on time or hasn’t broken his lease in other ways. There are some things to consider.
First off, read the lease. Hopefully, you chose a customized form instead of a boilerplate from the office supply store. Either way, you’ll need to understand the agreement you made with the tenant.
Next, and especially if you’re considering an eviction to make the sale smoother, check your state’s laws. Some states, such as Tennessee, require court approval before eviction. In addition, there may be a list of specific grounds that must be met before eviction. It’s important to know where you stand before attempting to evict.
Rather than evicting a good tenant, your better option would be to encourage him to work with you during the selling process. Give him plenty of notice before a showing. Most leases require 24-hour notice at a minimum. And keep the number of showings per week to one or two at most.
If you really prefer to have the property empty, you might offer your tenant incentives to get him to move out before his lease expires, and to keep the property in good condition, ready for showing at all times.
In the case of a tenant you have even a reasonable relationship with, treating him with respect and explaining your goals for the sale of the property can make the process go more smoothly. He may choose to move as soon as he can find another place to rent. But if not, he will likely be much more amenable to allowing prospective buyers to tour the home without interruption or complaints.
One thing you want to ensure if at all possible is that your tenant doesn’t criticize the property in front of viewers. His doing so out of anger or malice, regardless of how unfounded his complaints may be could cost you a buyer. And with little room for recourse if he still has time left on his lease.
All in all, it’s easier to sell a property while it’s furnished, so keeping the property rented is a good idea, if your tenant is willing to work with you. It may be that you can offer them a gift card to a local restaurant, or give them a discount on their rent for their cooperation in keeping the property in good order and allowing it to be shown without argument.
It may be, too, that your tenant may choose to buy the property himself. That would be the perfect solution for both of you. He wouldn’t have to move and you would have a buyer right on the spot ready to sign the deal.
